Regional Services Exports and Business Registers (UK)

Department of Business, Innovation and Skills (BIS)

Working Party on Trade in Goods and Services

2009, OECD

UK Cross Government priorities include

• Improve the economic performance of all English regions– reduce the gap in economic growth rates between regions

• Public service agreement targets– GVA per head

• Regional Development Agencies

Major Sources of UK Trade in Services

• Transportation– Civil Aviation Authority– Chamber of Shipping

• Travel– International Passenger Survey

• Insurance & finance– Lloyds & other insurance companies– Bank of England– Security dealers

• Communication, Construction, Computers & Information, Royalties, Business services, Personal, cultural & recreational– International Trade in Services Survey– operated by Office for National Statistics (ONS)

Coverage UK exports of services, 2007

0 5 10 15 20 25 30 35 40 45

Government

Personal, cultural & recreational

Other business

Royalties and license fees

Computer and information

Financial

Insurance

Construction

Communcations

Travel

Transportation

£ billions

Regional analysis about 30% of UK exports of services

0

20

40

60

80

100

120

140

160

180

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

£ b

illio

n

Total exports or services

ITIS survey total (approximate)

Regional analysis methodology

• Individual company transactions available at Reporting unit (RU) level– geographic location of export transaction not collected– respondent burden and quality

• Link ITIS company record into Business register– gives local unit (LU) structure with geography and

employment– apportion export value to LUs by employment

UK Government Office Regions

• 9 English regions– North East– North West– Yorkshire & the Humber– East Midlands– West Midlands– Eastern– London– South East– South West

• Rest of UK– Scotland, Wales & Northern

Ireland combined

ITIS survey, 2007 Annual survey of about 17,000 businesses

• Known traders from ABI filter question

• Weighted sample from IDBR

Number Share of ITIS value

Quarterly panel 700 60%

Annual panel 6,300 27%

Number Share of ITIS value

High propensity 10,000 12%

ABI 6,000 1%

Exclusion of ITIS categories in Regional analysis where• ITIS coverage small part of BPM total

– Financial services (20%)

– Personal, cultural and recreational services (40%)

• Other sources added to ITIS contribution

• Exclusions account for 20% of total ITIS value

Regional Analysis – Table layout

• Group products by BPM categories

• Adjust to published BPM totals

• Disclosure checking

• Don’t publish Regional totals

Regional value of Exports of servicesselected products, 2007

£ million

Pink Book Services Product CategoryNorth East

North West

Yorkshire & The

HumberEast

MidlandsWest

Midlands Eastern LondonSouth East

South West

Rest of UK UK

Table 3.4Communications Services * 30 10 * 80 230 2,275 1,465 55 105 4,260Table 3.7Computer and Information 45 130 105 55 145 525 2,645 3,115 110 205 7,080Table 3.8Royalties and Licence Fees (part2) * 620 65 225 75 335 1,385 2,525 * 145 6,260

Table 3.9Other Business services (part3)

Merchanting and other trade related services 25 195 40 40 50 55 2,060 320 20 95 2,900

Legal and accounting 20 * 35 * 50 55 3,420 180 60 125 4,420Business management and management consulting 130 205 115 50 125 275 3,395 1,035 355 320 6,005

Advertising and Market Research 5 45 45 10 60 60 1,775 305 25 40 2,370

Research and development 95 665 110 345 45 1,330 450 1,650 165 350 5,205Architectural, surveying and

construction4 20 75 70 80 25 70 300 460 20 255 1,375

Engineering and technical services5 180 260 75 125 45 560 1,635 1,685 215 700 5,480Services between affiliated enterprises, n.i.e. 40 135 40 70 80 285 1,690 870 115 300 3,625

Services not Regionalised 101,665

Total UK Exports of services 150,645

Government Office Region (GOR)

Apportioning by LU employment

• 1 LU or all LUs in one region– correct allocation

• Small number of LUs / regions– ‘best’ available compromise

• Large number of LUs / regions– unlikely that all LUs involved in export of services– e.g. companies with many retail outlets in Distribution

and Communication industries– allocate to RU, probably headquarters

Company structure, 2007by share of total export value

0% 10% 20% 30% 40%

1 LU; 1 Region

2+ LUs; 1 Region

2-4 LUs; 2+ Regions

5-9 LUs; 2+ Regions

10-19 LUs; 2+ Regions

20+ LUs; 2+ Regions

Share of total export value

Company structure, 2007by share of total export value

1 2 3 4 5 6 7 8 9 10 Total1 40% 40%

2-4 8% 17% 5% 0% 30%5-9 1% 1% 3% 3% 1% 0% 0% 9%

10-19 0% 0% 0% 0% 3% 1% 0% 1% 0% 5%20+ 0% 0% 0% 1% 0% 1% 1% 0% 3% 9% 16%

Total 48% 18% 7% 5% 4% 3% 2% 1% 3% 9% 100%

Number of Regions with a Local Unit presenceNumber of Local Units

Effect of different LU allocation methods on share of regional export value

0%

10%

20%

30%

40%

50%

London South East English Regions & Rest of UK

All LUs

10 LUs and above, RUs

5 LUs and above, RUs

All RUs

Effect of different LU allocation methods on share of regional export value

0%

2%

4%

6%

8%

North East NorthWest

Yorkshire& The

Humber

EastMidlands

WestMidlands

Eastern SouthWest

Rest ofUK

All LUs

10 LUs and above, RUs

5 LUs and above, RUs

All RUs

Effect of different LU allocation methods on share of regional export value - Computer services

0%

2%

4%

6%

8%

North East NorthWest

Yorkshire& The

Humber

EastMidlands

WestMidlands

Eastern SouthWest

Rest ofUK

All LUs

10 LUs and above, RUs

5 LUs and above, RUs

All RUs

Regional share of Exports of servicesselected products, 2007

Per cent

Pink Book Services Product CategoryNorth East

North West

Yorkshire & The

HumberEast

MidlandsWest

Midlands Eastern LondonSouth East

South West

Rest of UK UK

Table 3.4Communications Services * 1% 0% * 2% 5% 53% 34% 1% 2% 100%Table 3.7Computer and Information 1% 2% 1% 1% 2% 7% 37% 44% 2% 3% 100%Table 3.8Royalties and Licence Fees (part2) * 10% 1% 4% 1% 5% 22% 40% * 2% 100%

Table 3.9Other Business services (part3)

Merchanting and other trade related services 1% 7% 1% 1% 2% 2% 71% 11% 1% 3% 100%

Legal and accounting 0% * 1% * 1% 1% 77% 4% 1% 3% 100%Business management and management consulting 2% 3% 2% 1% 2% 5% 57% 17% 6% 5% 100%

Advertising and Market Research 0% 2% 2% 0% 2% 3% 75% 13% 1% 2% 100%

Research and development 2% 13% 2% 7% 1% 26% 9% 32% 3% 7% 100%Architectural, surveying and

construction4 1% 5% 5% 6% 2% 5% 22% 33% 1% 19% 100%

Engineering and technical services5 3% 5% 1% 2% 1% 10% 30% 31% 4% 13% 100%Services between affiliated enterprises, n.i.e. 1% 4% 1% 2% 2% 8% 47% 24% 3% 8% 100%

Government Office Region (GOR)

Share of regionalised exports of services, 2001 and 2006

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

NorthEast

NorthWest

Yorkshire& Humber

EastMidlands

WestMidlands

Eastern London SouthEast

SouthWest

Rest ofUK

2001

2006

Regional share of Exports of services, 2007

• Conclusions– Gives indication of level and

share of selected products (approx 30% of UK total)

– Value collected at reporting unit (RU) level

– Apportioned to regions by local unit (LU) employment

– Allocated to RU for companies with large number of LUs

– Annual variations may be of lower reliability

– Evidence that gap between regions is reducing 2001-06