UK Businesses Break Through the One Trillion Barrier

In 2013, the approximate Gross Value Added at basic prices (aGVA) of the UK Non-Financial Business Economy reached £1 trillion for the first time, with an estimated value of £1,012.6 billion, up from £936bn in 2012. This amount represents the income generated by businesses in the UK, less the cost of goods and services used to create this income.

The Non-Financial Business Economy excludes financial and insurance; Public administration and defence; public provision of Education; public provision of Health and all medical and dental practice activities, and most of Agriculture, except for measurable crop and animal production. Forestry & fishing data are also excluded from the aGVA calculations as the values are negligible on a comparable scale.

Between 2012 and 2013, aGVA increased by 8.1% (£76.3 billion), the largest annual percentage increase since 1997. This increase is a continuation of the recovery seen between 2009 and 2012 and takes aGVA to a level 11.3% (£103.0 billion) above that seen in 2008 at the start of the recession. In 2012 and 2013, for the first year since the start of the recession in 2008, all sectors of the UK Non-Financial Business Economy, as measured by the Annual Business Survey (ABS), saw growth in aGVA.

  • The Non-Financial Service sector, which accounts for over half (54.7%/£553.9bn) of aGVA in the UK Non-Financial Business Economy, contributed most to the increase in aGVA. The sector’s increase of 9.7% (£48.9 billion) between 2012 and 2013 was the fourth consecutive annual increase, taking it to 25.1% (£111.1 billion) above the level seen in 2008.
  • The Production sector, which accounts for just over a fifth of aGVA in the UK Non-Financial Business Economy, saw an increase in aGVA of 4.7% (£10.0 billion) between 2012 and 2013. The increase sees Production sector aGVA above the level in 2008 for the first time. The Production aGVA total in 2013 was calculated to be £223.6bn, of which Manufacturing accounted for £157.0bn.
  • The Distribution sector, which accounts for just over a seventh of aGVA in the UK Non-Financial Business Economy, also saw an increase in aGVA of 6.5% (£9.3 billion) between 2012 and 2013. This follows two consecutive annual decreases between 2010 and 2012, with the level in 2013 remaining below the level seen in 2008.
  • The Construction sector, which accounts for 7.9% of aGVA in the UK Non-Financial Business Economy, saw an increase in aGVA of 10.7% (£7.7 billion) between 2012 and 2013. This is the third consecutive year of growth, which leaves Construction aGVA £4.9 billion lower than the level in 2008.

Let’s start a conversation 

    Subscribe me for updates and news from In Accountancy

    Related articles

    time to pay arrangement
    Limited Companies

    Time to Pay Arrangements: A Lifeline for Owner-Managed Businesses

    Are You Struggling to Meet Your Tax Obligations?

    More than 30,000 UK businesses were involved in some kind of insolvency action in 2023, which was an increase of more than 50% compared with 2021 according to an article in the Guardian earlier this year.

    And the economic outlook would suggest that despite the fact that we are no longer in recession, 2024 and 2025 will be a challenging year for UK small business.

    With this in mind we have prepared the following guide and associated video to help you understand what your options are with regards to agreeing what is known as a ‘Time to Pay’ arrangement with HMRC.

    Read More »

    Find out how we can help?

    Lectus scelerisque a donec tincidunt litora per eleifend eget ut sagittis conubia pharetra scelerisque dui ultricies duis parturient auctor adipiscing.

     

    Let’s start a conversation 

      Subscribe me for updates and news from In Accountancy

      IN-ACCOUNTANCY

      Search