All Indicators > Indicator RRP1: GVA per capita

Additional details

This indicator reflects regional economic strength. As such GVA at the NUTS 3 level was assigned to corresponding Local Authorities. For example, the NUTS 3 area ‘Inner London’ comprises City of London, Camden, Hammersmith and Fulham, Kensington and Chelsea, Wandsworth and Westminster: these were all given the same GVA value. The latest year for which data on GVA per capita is available is 2003.

Gross Value Added (GVA) measures the contribution to the economy of each individual producer, industry or sector in the United Kingdom (ONS, 2002), and has recently replaced Gross Domestic Product (GDP) as the preferred indicator of regional economic prosperity (House of Commons, 2003). Whereas previously the terms GVA and GDP were interchangeable, under the European System of Accounts 1995 (ESA95), adopted by the ONS in 1998, GDP now refers specifically to estimates based on market prices, whilst GVA refers to estimates at basic prices. Since regional estimates are calculated at basic prices (SAC, 2003), GVA rather than GDP, is the appropriate term for this indicator.

The link between GDP and GVA can be expressed as GDP at market prices, adjusted for taxes, less subsidies on products equals GVA. GDP at market prices means that there are no adjustments for taxes on expenditures or subsidies (Sharp, 2003):

GVA = GDP – taxes on products + subsidies on products

GDP = GVA + taxes on products – subsidies on products

As a regional resource, it is not possible to differentiate access by ethnic group. Thus all ethnic groups within an LAD are attributed the same GVA.

 References

House of Commons, 2003, ‘Housing, Planning, Local Government and the Regions, Ninth Report’, Chapter 2, ‘The Public Service Agreement Target’, http://www.publications.parliament.uk/pa/cm200203/cmselect/cmodpm/492/49202.htm (accessed 15.02.06).

Office for National Statistics (ONS), 2002, ‘Guide to Gross Value Added’, http://www.statistics.gov.uk/CCI/nugget.asp?ID=254&Pos=3&ColRank=2&Rank=896 (accessed 15.02.06).

Sharp, P., 2003, ‘National Statistics Methodology Series: Gross Domestic Product: Output approach (gross value added) – Revised’, Office for National Statistics, London, http://www.statistics.gov.uk/downloads/theme_other/GSSMethodology_No_32.pdf (accessed 15.02.06).

Statistics Advisory Committee (SAC), 2003, ‘Regional Gross Value Added (GVA) (formerly Regional GDP)’, http://www.nisra.gov.uk/archive/sac/2003/SAC 7 of 2003 Regional Gross Value Added Abstract.doc (accessed 15.02.06).