10 December 2003
IMPROVING REGIONAL ECONOMIC STATISTICS
Improvements in regional statistics are vital to improve decision-making in regional economic policy, according to the First Report of Christopher Allsopp’s independent Review of Statistics for Economic Policymaking, published today.
The Report explains how the devolution and regional economic policy agendas have led to a growing demand for regional data that is not met adequately under present arrangements. Its recommendations respond to the needs of policymakers and the wider user community, including business and academics at both national and local levels. These include:
- bringing Regional Accounts more into the National Accounts framework, including a better quality and more timely measure of real regional Gross Value Added;
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expanding the range of micro-economic and sub-regional data already available, with the infrastructure used by the Office of National Statistics’ (ONS) Neighbourhood Statistics Service becoming the primary platform for area-based National Statistics;
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ONS or Government Statistical Service presence in the English regions to complement that which already exists in Scotland, Wales and Northern Ireland; and
- greater access for the ONS to administrative data held within government, which could improve both regional and national data while offering important savings in the compliance burden on business.
Publishing his First Report, addressed to the Chancellor of the Exchequer, the Governor of the Bank of England and the National Statistician, Christopher Allsopp said:
“Government policy is, increasingly, emphasising regional and local decision-making. To be successful, this change must be underpinned by high quality and timely statistical information. These new demands present a major challenge to the statistical services and a large gap has opened up between what is needed and what is available.
“My Report identifies ways of addressing the demands of regional economic policy. But this will require significant investment in, and commitment to, the UK statistical services. The pay-off would be better informed policy at all levels and in all regions and countries of the UK.”
The Report highlights a number of areas where consolidation and review of existing arrangements, some already under way, could offer savings and efficiencies, while recognising the resource and business-compliance requirements of such a statistical agenda.
The Report is consultative and comments are invited in time to inform the Final Report by the time of Budget 2004. It also looks to the second stage of the Review, discussing the extent to which the UK statistical system has reflected the changing structure of the UK economy, in particular the relative importance of the manufacturing and service sectors.
NOTES FOR EDITORS
1. The Chancellor of the Exchequer asked Christopher Allsopp to undertake a review of the statistical requirements for monetary and wider economic policymaking on 27 February 2003 (HMT press release 29/03). The Review began its work in June 2003, and aims to make its final report by the Budget in Spring 2004.
2. The Terms of Reference for the Review are:
“To advise on changes in the statistics and information necessary if the UK were to join the European single currency;
“To deliver an assessment to the Chancellor, the Governor of the Bank of England and the National Statistician, with a first report by the 2003 Pre-Budget Report, on the following:
- the regional information and statistical framework needed to support the Government’s key objective of promoting economic growth in all regions and reducing the persistent gap in growth rates between the regions;
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whether the changing economic structure of the UK is being properly reflected in the nature, frequency and timeliness of official economic statistics.”
3. Mr Allsopp’s First Report, ‘Review of Statistics for Economic Policymaking – First Report to the Chancellor of the Exchequer, the Governor of the Bank of England and the National Statistician’, is accessible on the Treasury website. Printed copies are available from the Treasury Public Enquiry Unit on 020 7270 4558.
4. The First Report focuses primarily on the statistics and information required to support regional policy. It follows detailed discussions with users and producers of regional data. A list of those contacted and submissions received is in Annex A3 of the Report.
5. The First Report is a largely consultative document, seeking views on the issues and the proposals it contains; comments received will be addressed in the next Report, due to be published by Budget 2004. The remainder of the Terms of Reference will also be dealt with by then.
6. ONS Regional Accounts contain information on the nine English regions, Scotland, Wales and Northern Ireland comparable to that for the UK in the National Accounts. The principle measure of regional economic activity is Gross Value Added, which is equal to the more familiar Gross Domestic Product excluding taxes less subsidies on products.
7. Sub-regional data refers to estimates for areas that are smaller than the nine regions and three countries of the UK. Some statistics for small areas are already available on the ONS website as part of its Neighbourhood Statistics Service.
8. Responses to the First Report should be sent by 13 February 2004 to:
Allsopp Review Consultation
Room 3/19
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ.
9. Media enquiries should be addressed to Charles Keseru in the Treasury press office on 020 7270 5188.
10. Non-media enquiries should be addressed to Michael Williams on 020 7270 5214.