/ Census 2011 Briefing Paper
Economy
Date of Publication / 22 January 2013
Published by / Policy, Research and Engagement

This report identifies the economic performance of the city as a whole and as such it uses

some very specific terminology that may not be familiar. A guide to the terminology used is

to be found in the appendix. All data shown here uses the NUTS3geographical classification

(Nomenclature of territorial units for statistics).

1.0Introduction
The Office for National Statistics (ONS) conducted the latest Census on 27 March, 2011. It is estimated that 92% of people in Derby responded to the Census.
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2.0Economic performance – Gross Value Added (GVA) at current prices
The total gross value added for Derby in 2010 (£5,675 million) represents 7.1% of the total GVA for the East Midlands region.
Between 1998 and 2010, the total GVA for Derby increased at an average nominal rate of 3.6% per year.This growth rate is less than the average annual change in both the East Midlands (3.9%) and England (4.3%).
Table 2.0.1 - Headline GVA at current prices 1998 to 2004
1998 / 1999 / 2000 / 2001 / 2002 / 2003 / 2004
£ Million
Derby / 3,706.0 / 3,933.0 / 4,102.0 / 4,273.0 / 4,421.0 / 4,633.0 / 4,795.0
East Midlands / 50,377.0 / 52,176.0 / 53,941.0 / 56,710.0 / 59,988.0 / 64,200.0 / 67,655.0
England / 662,498.0 / 694,628.0 / 723,298.0 / 761,194.0 / 800,319.0 / 853,981.0 / 901,086.0
Source: Office for National Statistics, Census 2011, April 2013 Update
Table 2.0.2 – Headline GVA at current prices 2005 to 2010
2005 / 2006 / 2007 / 2008 / 2009 / 2010
£ Million
Derby / 5,017.0 / 5,279.0 / 5,542.0 / 5,585.0 / 5,448.0 / 5,675.0
East Midlands / 70,509.0 / 74,367.0 / 78,353.0 / 79.227.0 / 77,251.0 / 79,914.0
England / 947,218.0 / 997,356.0 / 1,056,933.0 / 1,080,363.0 / 1,063,683.0 / 1,099,713.0
Source: Office for National Statistics, Census 2011, April 2013 Update
Figure 2.0.1shows that Derby had the lowest average % change in GVA between 1998 and 2010 with 3.6% this is 0.3% lower than the East Midlands and 0.7% lower than England.
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Table 2.0.4 and Figure 2.0.1 illustrate a significant drop in the year on year change in GVA. Between 2006 and 2007 an increase of 5.0%and 2008 to 2009, a decrease to -2.5%. This downturn is reflected at a regional and national level, the East Midlands falling to -2.5% and England performing significantly worse at -1.5%.
GVA recovery between 2008 to 2009 and 2009 to 2010 has been most significant in Derby increasing to 4.2% from a low point of -2.5%.


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Figure 2.0.5 further illustrates the downturn in GVA. Between 2006 and 2008 Derby had the greatest downturn in year on year change, falling from 5.0% in the 2006 to 2007 period to 0.8% in the 2007 to 2008 period and then to -2.5% in the 2008 to 2009 period.

3.0 Economic Performance – Gross value added per head of population at current prices
In 2010, the GVA per head of population for Derby was £22,990 this was greater than the
GVA per head for the East Midlands region (£17,832) and greater than England (£21,054).
Between 1998 and 2010, the average annual increase of GVA per head for Derby was 3.0%. This was lower than the East Midlands with 3.2% and England with 3.7%.
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4.0 Economic performance – Gross value added at current prices by industry group
In Derby, production made up the largest percentage share of the total GVA in Derby (30.5%). Between 1998 and 2010, the GVA of this industry group increased at an average annual rate of 1.1%. The second largest industry group in 2010 was Public administration; education; health, accounting for 21.1% of the total GVA for Derby.
Between 1998 and 2010, the GVA of this industry group increased at an average annual rate of 6.9%. The financial and insurance activities sector showed the largest percentage increase between 1998 and 2010 with an average annual change of 8.2%.
Production and construction GVA has remained little changed between 1998 and 2010, increasing by 1.1% and 1.2% respectively.
Only Agriculture, forestry and fishing show negative growth, and these have very little significance within the city economy.
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Table 4.0.1–City GVA by Industry Group 1998-2004
1998 / 1999 / 2000 / 2001 / 2002 / 2003 / 2004
£ million
Agriculture, forestry and fishing / 3 / 4 / 3 / 3 / 3 / 3 / 3
Production / 1,519 / 1,611 / 1,681 / 1,706 / 1,683 / 1,632 / 1,583
Construction / 214 / 231 / 245 / 263 / 272 / 296 / 321
Distribution; transport; accommodation and food / 541 / 567 / 577 / 602 / 633 / 678 / 717
Information and communication / 101 / 118 / 139 / 157 / 173 / 191 / 206
Financial and insurance activities / 106 / 101 / 94 / 105 / 115 / 137 / 158
Real estate activities / 260 / 266 / 274 / 287 / 320 / 361 / 382
Business service activities / 342 / 340 / 337 / 355 / 379 / 411 / 435
Public administration; education; health / 537 / 603 / 651 / 695 / 737 / 808 / 867
Other services and household activities / 82 / 93 / 98 / 101 / 107 / 116 / 123
Source: Office for National Statistics, Census 2011, April 2013 Update
Table 4.0.2 –City GVA by Industry Group 2005-2010
2005 / 2006 / 2007 / 2008 / 2009 / 2010 / Average annual change 1998-2010
£ million / (%)
Agriculture, forestry and fishing / 2 / 2 / 3 / 3 / 3 / 2 / -3.3
Production / 1,594 / 1,658 / 1,700 / 1,665 / 1,630 / 1,729 / 1.1
Construction / 331 / 347 / 353 / 335 / 272 / 246 / 1.2
Distribution; transport; accommodation and food / 748 / 792 / 825 / 821 / 801 / 836 / 3.7
Information and communication / 210 / 212 / 221 / 229 / 225 / 236 / 7.3
Financial and insurance activities / 202 / 221 / 249 / 277 / 299 / 273 / 8.2
Real estate activities / 406 / 430 / 497 / 510 / 443 / 533 / 6.2
Business service activities / 463 / 481 / 485 / 470 / 451 / 474 / 2.8
Public administration; education; health / 932 / 1,002 / 1,073 / 1,138 / 1,183 / 1,199 / 6.9
Other services and household activities / 130 / 133 / 135 / 139 / 141 / 148 / 5
Source: Office for National Statistics, Census 2011, April 2013 Update
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Figures 4.0.3 and 4.0.4 illustrate the changes in the share of GVA by industry group in Derby between 1998 and 2010. One of the most notable changes is the decrease in GVA from production from 41% to 31%. It is clear that GVA from other industry sectors has grown to compensate for the reduction in production GVA share. The industry showing the most significant GVA growth is construction 14% to 21%. The majority of other industry sectors are showing smaller increases in their GVA share.

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Table 4.0.3 illustrates that Derby has a significant number of industry categories with GVA outperforming the East Midlands and England, of particular note are:
  • production (30.5%),
  • information and communication (4.2%),
  • real estate activities (9.4%)
  • and public administration and health (21.1%).

Those industry groups in Derby where GVA as a percentage of total GVA is significantly lower than the East Midlands and England are the distribution, and construction categories and to a lesser degree business service activities.

Table 4.0.3 - GVA by industry at current basic prices as a percentage of total GVA
Derby / East Midlands / England
Agriculture, forestry and finishing / 0.0 / 1.2 / 1
Production / 30.5 / 20.9 / 14
Construction / 4.3 / 7.1 / 6
Distribution; transport;accommodation and food / 14.7 / 21.7 / 19
Information and communication / 4.2 / 3.5 / 6
Financial and insurance activities / 4.8 / 4.3 / 10
Real estate activities / 9.4 / 7.6 / 8
Business service activities / 8.4 / 9.9 / 12
Public administration; education; health / 21.1 / 20.4 / 20
Other services and household activities / 2.6 / 3.4 / 4
Source: Office for National Statistics, Census 2011, April 2013 Update

Figure 4.5 shows GVA by industry as a percentage of the total GVA in Derby the East Midlands and England. Despite its share of GVA declining since 1998 production in Derby 30.5% is still higher than in the East Midlands 20.9% and England 13.6% showing that it is the most significant industry sector in the city.

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5.0. Gross disposable household income (GDHI) per head at current prices

In 2011, the GDHI in Derby was £12,479, 22.2% below the UK average, while the East Midlands region was 9.2% below the UK average. Other features of GDHI in Derby include:

  • GDHI per head in 2011 was further below the UK average than in 1998 where it was 11.7% below the UK average.
  • In 1998 Derby had a GDHI of 11.7% compared to 22.2% in 2011 this shows a downturn over time of 10.5%.
  • The average annual GDHI increase in Derby 2.6% for the period 1998 to 2011 was lower than both the East Midlands and England with3.5%.

Table 5.0.1 -Gross disposable household income (GDHI) per head at current prices 1998 - 2004
1998 / 1999 / 2000 / 2001 / 2002 / 2003 / 2004
£ per head
Derby / 8975.0 / 9105.0 / 9258.0 / 9781.0 / 10337.0 / 10839.0 / 11115.0
East Midlands / 9325.0 / 9651.0 / 10054.0 / 10692.0 / 11140.0 / 11806.0 / 12166.0
England / 10371.0 / 10767.0 / 11328.0 / 12012.0 / 12385.0 / 12892.0 / 13254.0
Source: Office for National Statistics, Census 2011, April 2013 Update
Table 5.0.2 - Gross disposable household income (GDHI) per head at current prices 2005 - 2011
2005 / 2006 / 2007 / 2008 / 2009 / 2010 / 2011 / Average annual change
£ per head
Derby / 11465.0 / 11828.0 / 11567.0 / 11709.0 / 12107.0 / 12269.0 / 12479.0 / 2.6
East Midlands / 12527.0 / 12881.0 / 13154.0 / 13480.0 / 13727.0 / 14177.0 / 14561.0 / 3.5
England / 13647.0 / 14171.0 / 14505.0 / 14926.0 / 15328.0 / 15831.0 / 16251.0 / 3.5
Source: Office for National Statistics, Census 2011, April 2013 Update

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Appendix

Gross value added (GVA) at market prices is output at market prices minus intermediate consumptionpurchaser prices; it is a balancing item of the national accounts production account.

GVA at basic pricesis output at basic prices minus intermediate consumption at purchaser prices. The basic price is the amount receivable by the producer from the purchaser for a unit of a product minus any tax on the product plus any subsidy on the product.

GVA by industry sectoris the sum of GVA at basic prices over all industries plus taxes on products minus subsidies on products gives gross domestic product. Gross value added of the total economy usually accounts for more than 90 % of GDP.

Gross disposable household income (GDHI) is the amount of money that individuals (i.e. the household sector) have available for spending or saving. This is money left after expenditure associated with income, e.g. taxes and social contributions, property ownership and provision for future pension income. It is calculated gross of any deductions for capital consumption.

The household sector covers people living in traditional households as well as those living in institutions. The latter includes people living in retirement homes and prisons. The sector includes sole trader enterprises and non-profit institutions serving households.

GVA by industry group refers to the contribution to gross value added by each industrial groups.

The NUTS classification (Nomenclature of territorial units for statistics) is a hierarchical system for dividing up the economic territory of the EU for the purpose of:

  • The collection, development and harmonisation of EU regional statistics.
  • Socio-economic analyses of the regions.
  • NUTS 1: major socio-economic regions
  • NUTS 2: basic regions for the application of regional policies
  • NUTS 3: small regions for specific diagnoses

The NUTS 3 hierarchy refers to the smallest NUTS geographical areas and is made up of counties and groups of unitary authorities. NUTS 3 enables more detailed analysis to be made of economic conditions within specific areas.

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