Gross value added

Gross value added (GVA) measures the increase in the value of the economy generated from the production of goods and services. GVA can be calculated by estimating the value of goods and services produced minus the value of the inputs used to create them (production) or the profits from business, household income and the government tax intake from the production of goods and services (income). The annual balanced GVA figures combine information from both measures to provide the best estimate of GVA.

The GVA figures are at current market prices, meaning that they are not adjusted for inflation. The real terms change in GVA figures reflect the annual change in GVA, adjusted to remove the effects of inflation. Some caution should be used when interpreting GVA per head figures and figures for smaller geographies (further information is provided in the 'Limitations' section below).

An associated economic measure, gross domestic product (GDP), combines the estimate of GVA with taxes (including value added tax) and subsidies on the produced goods and services.

The latest annual balanced GVA figures are for 2023 and are provisional.

Key figures

• Total GVA was £35.60bn in Lancashire-12.
• Total GVA was £43.08bn in Lancashire-14.
• Compared to 2022, there was a real terms increase in total GVA of 0.5% in Lancashire-12 (England = 0.5%). In Lancashire-14, there was a small real terms decrease in total GVA (-0.03%).
• Lancashire-14 was ranked 26th in terms of total GVA out of the 46 international territory level 2 areas in the UK.
• GVA per head was £28,031 in Lancashire-12 and £27,430 in Lancashire-14 (England = £36,632).
• Compared to 2022, there was a real terms decrease in GVA per head of 0.8% in Lancashire-12 (England = -0.5%). In Lancashire-14, there was a larger real terms decrease in GVA per head of 1.2%.

GVA by local authority district (LAD)

At the local authority level, Preston had the largest total GVA (£5.60bn), followed by South Ribble (£4.75bn), Blackburn with Darwen (£4.16bn), Lancaster (£3.83bn) and West Lancashire (£3.64bn). Rossendale (£1.29bn) and Hyndburn (£1.76bn) had the lowest total GVA.

Eight local authorities in Lancashire-14 saw a real terms increase in total GVA compared to the previous year. The largest increases were seen in West Lancashire (3.8%), Lancaster (3.8%), Chorley (2.4%) and Pendle (2.2%). Six local authorities saw a real terms decrease in total GVA, with the largest differences seen in Burnley (-7.0%) and Ribble Valley (-3.6%).

GVA by international territory level (ITL)

At international territory level 3 (ITL3) within Lancashire-14, Mid Lancashire had the largest total GVA (£15.89bn), followed by East Lancashire (£7.39bn) and Chorley and West Lancashire (£6.43bn). Blackpool (£3.31bn) had the lowest total GVA.

Compared to the previous year, two of the ITL3 areas in Lancashire-14 saw a real terms increase in total GVA. The largest increase was seen in Chorley and West Lancashire (3.2%), followed by Lancaster and Wyre (1.2%). Blackpool (-3.6%) and East Lancashire (-1.2%) saw a real terms decrease in total GVA.

Of the 182 ITL3 areas in the UK (including Northern Ireland), in terms of total GVA, Mid Lancashire ranked 46th and East Lancashire ranks 118th. Blackpool ranks 170th. In real terms change in GVA, Chorley and West Lancashire ranked 17th, while Blackpool ranked 176th.

At international territory level 2 (ITL2) within the North West, the largest total GVA was seen in Greater Manchester (£100.35bn), followed by Merseyside (£43.32bn). Lancashire-14 (£43.08bn) had the third highest total GVA in the North West.

Of the five ITL2 areas within the North West, Lancashire-14 saw limited real terms change in total GVA (-0.03%). The largest real terms increases were seen in Cheshire (1.4%) and Greater Manchester (1.2%).

Out of the 46 ITL2 areas in the UK (including Northern Ireland), Lancashire-14 ranked 26th in terms of total GVA. Lancashire-14 ranked 29th in real terms change in GVA.

Source: Annual balanced estimates of gross value added (GVA(B)) for local authority districts (LAD) and international territorial levels (ITL) from the Office for National Statistics.

Things you need to know about the data

The Office for National Statistics (ONS) publishes annual balanced estimates of GVA for subnational areas of the United Kingdom, including estimates for the Lancashire-14 International Territorial Level (ITL) 2 sub-region, the six smaller Lancashire ITL3 areas and the 14 Lancashire local authority areas. Further information on Lancashire's geographies can be found on the geography article.

The GVA figures are workplace-based, meaning that they are allocated to the region in which the economic activity takes place (see limitations regarding GVA per head figures).

The UK total GVA figure includes extra-regio (activity that cannot be assigned to a specific country or region). All GVA per head figures exclude extra-regio activity as it cannot be assigned to regions.

The balanced estimates of GVA combine two approaches to measuring GVA. Income GVA estimates are calculated by adding up the income generated by individuals or corporations in the production of goods and services whilst the production approach estimates GVA by calculating the total output of goods and services less the value of goods and services used up in the production process. A balanced approach evaluates the strengths and weaknesses of these two opposing approaches and gives them an appropriate weighting in informing a single best estimate of GVA.

The real terms change in GVA figures, or chained volume measures (CVM) of GVA, are calculated using chain-linking methods to remove the impact of inflation.

Limitations

The GVA per head figures can be a useful way of comparing areas of different sizes. However, because GVA figures are workplace-based, comparisons can be affected by commuting flows. Therefore, GVA per head figures should be interpreted with caution. The GVA labour productivity figures provide a direct measure of economic performance.

At the local authority level and smaller ITL3 areas, some GVA figures can be volatile owing to the small nature of the areas. Where erratic movements are evident in the time series you should use caution interpreting the data.

Page updated 15 September 2025