Gross Value Added

Important information

New GVA 'balanced' statistics

Historically, the Office for National Statistics (ONS) has produced two estimates of workplace-based regional gross value added (GVA) using the income approach (as National Statistics) and the production approach (as Experimental Statistics).

As from the December 2017 release of GVA data, which contains provisional data for 2016, the ONS have produced a new balanced measure of regional GVA, GVA (B) and an explanatory statistical bulletin. This dataset is currently classed as an Experimental Statistics publication.

The new 'balanced' GVA dataset combines the strengths from both the income and production approaches and provides a single measure of economic activity within a region. The balanced GVA figures also include a dataset with estimates of nominal and 'real' growth (adjusted for inflation) for NUTS-1 and NUTS-2 areas, by industry. The new GVA statistics are now also available for individual local authorities, and for local enterprise partnerships.  

The ONS believe that the balanced measure of GVA should be more reliable and stable than either of its component estimates. Further information and detail about the methodology can be found in the ONS statistical bulletin - Regional gross value added (balanced), UK: 1998 to 2016 and the ONS document – Development of a balanced measure of regional gross value added.

The ONS have discontinued the publication of individual statistical bulletins for gross value added (based on the income approach, GVA (I)), and gross value added (based on the production approach, GVA (P)). However, the ONS will continue to produce and publish the individual datasets for GVA (I) and GVA (P) to allow users access to the data in their unbalanced form.

The analysis below focusses on the new balanced GVA data the Lancashire-14 NUTS-2 area and the smaller NUTS-3 areas within the Lancashire-14 area. These are geographically based on European-defined statistical units – the so-called "Nomenclature of Units for Territorial Statistics" (NUTS).

The latest 2016 figures are provisional. Please note that GVA data are often subject to revisions in future years as more data becomes available. Revisions have previously been applied to numerous years within the series.  

GVA per head figures can suffer from distortions arising from commuting patterns and/or the composition of resident populations. This is perhaps more pertinent at the smaller NUTS-3 and individual local authority levels. For example, the 2011 Census showed that Preston gained 23,000 people in terms of net commuters, whilst Chorley saw a net outflow of 12,000 commuters. Caution should therefore be applied when interpreting the data.

Provisional gross value added (GVA) totals, balanced, 2016

In 2016, the Lancashire-14 NUTS-2 area had an overall provisional balanced Gross Value Added (GVA) total of £30.821 billion, which was the third largest in the region, behind Greater Manchester (£63.673 billion) and Merseyside (£30.858 billion). GVA for the Lancashire-14 NUTS-2 area was ranked into 24th position out of 39 NUTS-2 areas in the UK (excluding Northern Ireland). The GVA total for the Lancashire-12 area was £25.574 billion.

For information, the 2016 provisional GVA total derived via the new balanced approach for the Lancashire-14 NUT-2 area at £30.821 billion was lower than the 2016 GVA (income approach) figure of £31.496 billion by £0.675 billion.

The Mid Lancashire NUTS-3 area had the sixth largest provisional balanced GVA total in the North West region in 2016 (out of 20 North West NUTS-3 areas) and the 47th greatest in the UK (out of the 173 UK NUTS-3 areas).

The four Lancashire NUTS-3 areas of Blackpool, Blackburn with Darwen, Lancaster and Wyre and Chorley and West Lancashire had the smallest GVA balanced totals in the North West region and were ranked in the lowest sixth of the UK NUTS-3 areas (in terms of GVA totals). Blackpool NUTS-3 area had the 10th smallest GVA total in the UK, whilst the Blackburn with Darwen NUTS-3 area had the 16th smallest.

The East Lancashire NUTS-3 area had the eighth smallest GVA total in the North West and the 62nd smallest in the UK.

Table 1: Workplace-based gross value added (GVA) totals, balanced, 2016 (provisional), experimental statistics

Notes: (1) The Mid Lancashire NUTS-3 area is comprised of Fylde, Preston, South Ribble and Ribble Valley local authorities. (2) The East Lancashire NUTS-3 area is made up of the four local authorities of Burnley, Hyndburn, Pendle and Rossendale.

Source: Office for National Statistics - Regional gross value added (balanced approach), 2016 (provisional), experimental statistics

NUTS-3 areas in the Lancashire-12 area

Lancashire-12 (comprised of four NUTS-3 areas)

Lancashire-14 (NUTS-2 area) – comprised of six NUT-3 areas

UK total

 

£26.136 billion

£30.821 billion

£1,747.647 billion

Lancaster and Wyre

(£4.190 billion)

(£4.190 billion)

 

Mid Lancashire (1)

(£11.502 billion)

(£11.502 billion)

 

East Lancashire (2)

(£6.120 billion)

(£6.120 billion)

 

Chorley and West Lancashire

(£4.324 billion)

(£4.324 billion)

 

Additional NUTS-3 areas in the Lancashire-14 area

 

 

 

Blackburn with Darwen

 

(£2.991 billion)

 

Blackpool

 

(£2.369 billion)

 

Provisional gross value added per head figures, balanced, 2016  

The 2016 provisional GVA per head figure (balanced) for the Lancashire-14 NUTS-2 area at £20,754 was more than a fifth lower than the UK less Extra-Regio figure (£26,339) and was ranked 27th in the UK and 4th in the region behind Cheshire (£31,848), Cumbria (£23,804) and Greater Manchester (£20,866). It was however above the figure for Merseyside (£20,125).

Note: Extra-Regio GVA comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf.

Locally, only the Mid Lancashire NUTS-3 area (£28,886) had a provisional balanced GVA per head figure above that of the UK in 2016, by 9.7%. The Mid Lancashire NUTS-3 area is comprised of Fylde, Preston, South Ribble and Ribble Valley local authorities. The area had the fifth highest balanced GVA per head figure in the North West in 2016 and was ranked in 35th place out of the 173 NUTS-3 areas in the UK.

The on-line ONS statistical bulletin - Regional gross value added (balanced), UK: 1998 to 2016 contains an interactive map at Figure 3 that allows balanced GVA per head figures for the 173 NUTS-3 areas in the UK to be visualised in time series graph from 1998 to 2016. This shows that the Mid Lancashire NUTS-3 area was the only Lancashire NUTS-3 area to keep pace with the UK in terms of balanced GVA per head since 1998.

In contrast, the balanced GVA per head figure for the Lancaster and Wyre NUTS-3 area (£16,083) was almost two fifths lower than the UK figure. It was the third lowest figure in the region and ninth lowest in the UK.

Table 2: Work-placed based gross value added per head (£), balanced, and per head indices (in brackets), 2016 (provisional), experimental statistics

Notes: (1) The Mid Lancashire NUTS-3 area is comprised of Fylde, Preston, South Ribble and Ribble Valley local authorities. (2) The East Lancashire NUTS-3 area is made up of the four local authorities of Burnley, Hyndburn, Pendle and Rossendale.

Source: Office for National Statistics - Regional gross value added (balanced approach), 2016 (provisional), experimental statistics

NUTS-3 areas in the Lancashire-12 area

Lancashire-12 (comprised of four NUTS-3 areas)

Lancashire-14 (NUTS-2 area) – comprised of six NUT-3 areas

UK total

 

-

£20,754     (78.8)

£26,339  (100)

Lancaster and Wyre

£16,083    (61.1)

£16,083    (61.1)

 

Mid Lancashire (1)

£28,886  (109.7)

£28,886  (109.7)

 

East Lancashire (2)

£18,362    (69.7)

£18,362    (69.7)

 

Chorley and West Lancashire

£18,579    (70.5)

£18,579    (70.5)

 

Additional NUTS-3 areas in the Lancashire-14 area

 

 

 

Blackburn with Darwen

 

£19,944    (75.7)

 

Blackpool

 

£16,622    (63.1)

 

 

The balanced GVA per head figure for the Blackpool NUTS-3 area (£16,622) in 2016 was over a third lower than the UK figure. It was the fifth lowest figure in the region and 18th lowest of the UK.

The balanced GVA per head figures for the East Lancashire NUTS-3 area (£18,362) and the Chorley and West Lancashire NUTS-3 area (£18,579) were about a quarter of the way from the bottom of the UK NUTS-3 GVA per head rankings and were about 30% lower than the UK figure. They were the seventh and eighth lowest in the North West region, respectively.

The balanced GVA per head figure for the Blackburn with Darwen NUTS-3 area (£19,944) in 2016 was almost a quarter lower than the UK figure. It was the tenth lowest in the region (out of 20) and ranked in the 67th lowest position in the UK.

Provisional yearly growth/decline in nominal (unadjusted for inflation) balanced gross value added totals, 2015 to 2016

Between 2015 and 2016, the balanced GVA total for the UK (including the Extra-Regio component), showed provisional nominal growth (unadjusted for inflation) of 3.7%. The Lancashire-14 NUTS-2 area was estimated to have increased provisionally by a lower 2.2% in nominal terms (Lancashire-12 = 2.3%).

Within the Lancashire-14 NUTS-3 area, only the Blackburn with Darwen NUTS-3 area (4.1%) had a provisional nominal growth rate in GVA above the UK figure. The Mid Lancashire NUTS-3 area (3.5%), the East Lancashire NUTS-3 area (2.7%) and the Chorley and West Lancashire NUTS-3 area (2.2%) all had provisional nominal growth rates in GVA (unadjusted for inflation) below the UK figure.

The GVA totals for the Lancaster and Wyre NUTS-3 area and the Blackpool NUTS-3 area, fell, provisionally, by 1.6%, and 0.6% over the year.

Provisional yearly growth/decline in 'real' (adjusted for inflation) balanced gross value added totals, 2015 to 2016

The new balanced GVA dataset contains estimates of 'real' (chained volume) figures for the balanced GVA totals (ie adjusted for inflation) at the NUTS-1 regional level and the NUTS-2 sub-regional level. They are not yet available for the NUTS-3 level data, or other geographies.   

Between 2015 and 2016, the balanced GVA total for the UK (including the Extra-Regio component), showed provisional 'real' growth (adjusted for inflation) of 1.6%. In the North West, provisional 'real' growth was estimated at 1.3%. 

The balanced GVA total for the Lancashire-14 NUTS-2 area was estimated to have fallen provisionally by -0.6% in 'real' terms between 2015 and 2016. 

Provisional yearly growth/decline in nominal (unadjusted for inflation) balanced gross value added per head figures, 2015 to 2016

The provisional nominal growth (unadjusted for inflation) in balanced GVA per head for the Lancashire-14 NUTS-3 area over the previous year at 1.7% was lower than that recorded for the UK (less Extra-Regio) of 2.8%. 

The Blackburn with Darwen NUTS-3 area (4.0%) and the Mid Lancashire NUTS-3 area (3.0%) had provisional nominal growth rates (unadjusted for inflation) in balanced GVA per head that were greater than the UK figure. The East Lancashire NUTS-3 area (2.3%) and the Chorley and West Lancashire NUTS-3 area (1.3%) were provisionally estimated to the lower than the UK increase.

The balanced GVA per head figures for the Lancaster and Wyre NUTS-3 area and the Blackpool NUTS-3 area fell provisionally in nominal terms (unadjusted for inflation) by -2.3% and 0.3%, respectively.

Table 3: Workplace based gross value added per head (1), balanced, at current prices, 2016 (provisional), experimental statistics

Notes: (1) Estimates of workplace based GVA allocate values to the region or area in which the economic activity takes place; (2) Provisional figures; (3) Nominal change in figures, unadjusted for inflation; (4) The GVA for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf.

Source: Office for National Statistics - Regional gross value added (balanced approach), 2016 (provisional), experimental statistics, published 20 December 2017. 

Area

2015 GVA per head (£) 

2016 GVA per head (2) (£) 

2016 GVA per head Indices (UK less Extra-Regio = 100)

Nominal change in GVA per head (3), 2015 to 2016          (£)

Nominal change in GVA per head (3), 2015 to 2016 (%)

Lancaster and Wyre (NUTS-3) area

 16,464

 16,083

61.1

-381

-2.3

Mid Lancashire (NUTS-3) area

 28,052

 28,886

109.7

834

3.0

East Lancashire (NUTS-3) area

 17,952

 18,362

69.7

410

2.3

Chorley and West Lancashire

(NUTS-3) area

 18,340

 18,579

70.5

239

1.3

Lancashire-12 area

-

-

-

-

-

Blackburn with Darwen (NUTS 3) area

 19,180

 19,944

75.7

764

4.0

Blackpool (NUTS 3) area

 16,679

 16,622

63.1

-57

-0.3

Lancashire-14 (NUTS 2) sub-region

 20,402

 20,754

78.8

352

1.7

Cumbria (NUTS-2) sub-region

 23,300

 23,804

90.4

504

2.2

Greater Manchester (NUTS-2) sub-region

 22,172

 22,886

86.9

714

3.2

Merseyside (NUTS-2) sub-region

 19,924

 20,125

76.4

201

1.0

Cheshire (NUTS-2 sub-region)

 30,140

 31,848

120.9

1708

5.7

North West (NUTS 1) region

 22,426

 23,068

87.6

642

2.9

United Kingdom less Extra-Regio (4)

 25,617

 26,339

100.0

722

2.8

 

 

Further analysis and report to follow

Page updated January 2018 (initial analysis of data)