DCMS Sector Financial Estimates Methodology

1. Introduction

This doc units out the methodology underlying the Financial Estimates for DCMS Sectors. They include Official and Nationwide Statistics revealed by the Division for Digital, Tradition, Media and Sport (DCMS). The most recent releases can be found on the DCMS Sectors Financial Estimates launch web page.

The Financial Estimates measure the financial contribution to the UK of every sector for which DCMS has accountability:

• Civil Society
• Artistic Industries
• Cultural Sector
• Digital Sector
• Playing
• Sport
• Telecoms
• Tourism

This technique notice covers gross worth added (GVA) expressed in present costs (not bearing in mind inflation) and chained quantity measures (bearing in mind inflation), jobs, earnings, exports and imports of products and providers, and variety of companies. The estimates within the publications are per nationwide (UK) estimates, revealed by the Workplace for Nationwide Statistics (ONS).

These statistics are produced in accordance with the Code of Follow for Statistics.

1.1 Updates to this steering

The next desk outlines when this steering has been up to date and what the updates embody.

Desk 1.1: Updates to DCMS Sector Financial Estimates Methodology

Date	Replace
nineteenth December 2016	Included a listing of the sub-sectors SIC codes for the Artistic Industries, Digital Sector and Cultural Sector.
twenty sixth June 2017	Included a technique for the Exports and Imports of products estimates and so as to add particulars on the methodology for producing estimates for the Civil Society, following the transfer of the Workplace for Civil Society from the Cupboard Workplace to DCMS in summer season 2016. As well as SIC 93.21 has been added to Desk 2.1, having been incorrectly omitted within the earlier model.
twenty ninth November 2017	Included the methodology for GVA proven in chained quantity measures.
14th February 2018	Included the chapter on enterprise demographics and the breakdowns developed.
twenty eighth February 2018	Included the chapter on regional GVA.
sixth June 2018	Included an replace to the chapters on export and imports of products and providers.
18th July 2018	Included an replace on the Tourism employment information.
twenty eighth August 2018	Included the definitions for Audio Visible and Pc Video games.
twenty eighth November 2018	Included additional clarification of the overlaps between DCMS sectors and an replace on GVA estimates. This contains an replace on the methodology adjustments for the Tourism Satellite tv for pc Account.
thirtieth January 2019	Included some additional data round methodology for the Enterprise Demographics publication.
thirteenth February 2019	Included further data across the methodology for the Regional GVA publication.
4th September 2019	Included the chapter on earnings within the Digital sector (Chapter 12), to offer an replace in Chapter 1 on the UK Nationwide Statistics evaluation of our financial estimate sequence in addition to an replace to the Commerce statistics (Chapter 8, 9 and 10).
eleventh December 2020	Included updates within the methodology of the Commerce statistics, inclusion of the Enterprise Births and Deaths publication and hyperlinks to the standard assurance paperwork for every of the estimates.

1.2 Abstract of knowledge sources

Information sources used within the Financial Estimates embody:

1.3 Customers

The customers of those statistics fall into 5 broad classes:

• Ministers and different political figures
• Coverage and different professionals in DCMS and different Authorities departments
• Industries and their consultant our bodies
• Charitable organisations
• Lecturers

The first use of those statistics is to observe the efficiency of the industries within the DCMS sectors, serving to to know how present and future coverage interventions could be handiest.

1.4 UK statistics authority evaluation of the DCMS Sectors Financial Estimates sequence

Following a report by the Workplace for Statistics Regulation in December 2018, the next DCMS Sector Financial Estimates have been designated as Nationwide Statistics on twenty sixth June 2019:

• DCMS Sector Financial Estimates: GVA
• DCMS Sector Financial Estimates: Regional GVA
• DCMS Sector Financial Estimates: Enterprise Demographics
• DCMS Sector Financial Estimates: Employment

Because the report now we have striven to enhance our publications by offering summaries of different notable sources of knowledge, extra element on the character and extent of the overlap between the sectors, and additional data on the standard and limitations of the information. We’ll proceed to enhance the sequence sooner or later, according to the suggestions of the report.

1.5 High quality Report

Please notice that DCMS have additionally produced a top quality report alongside every Financial Estimate publication which has been revealed since 2019. The standard report summarises the standard assurance processes utilized throughout manufacturing of DCMS Financial Estimate statistics in addition to high quality assurance processes and the methodology from the information suppliers (ONS).

2. Definitions

With the intention to measure the scale of the economic system it is very important have the ability to outline it. DCMS makes use of a variety of definitions based mostly on inner or UK agreed definitions. All definitions are based mostly on the Commonplace Industrial Classification 2007 (SIC) codes. The Commonplace Industrial Classification is a way of classifying companies based on the kind of financial exercise that they’re engaged in. The most recent model is SIC 2007. This implies nationally constant sources of knowledge can be utilized and permits worldwide comparisons.

The 4-digit SICs that make up every DCMS sector and sub-sector are proven within the tables revealed alongside this steering notice.

The event of particular person sector definitions in isolation as new sectors have fallen inside the division’s remit has meant that there’s overlap between DCMS sectors. For instance, the Cultural Sector is outlined utilizing SIC codes which can be almost all inside the Artistic Industries, while the Telecoms Sector is totally inside the Digital Sector.

Determine 2.1 beneath visually reveals the overlap between DCMS Sectors when it comes to SIC codes. Customers ought to notice that this doesn’t give a sign of the magnitude of the worth of overlap. For this, customers ought to seek the advice of the corresponding statistical launch the place the worth of the overlap is proven.

2.1 Civil Society

The Workplace for Civil Society, which moved to DCMS in 2016, is answerable for charities, voluntary organisations or trusts, social enterprises, mutuals and group curiosity firms. The Civil Society sector just isn’t like a standard business and due to this fact information should not available within the normal information sources. The place potential, information are offered from official sources. Some estimates from different sources are quoted to offer a wider context however can’t be added to the official outcomes. It’s due to this fact doubtless that the estimates for the civil society are an underestimate for this sector.

For employment, individuals who work in a “charity, voluntary organisation or belief” are reported within the DCMS estimates. There are not any reported estimates for exports or imports of products and providers for civil society.

For GVA in present costs, an estimate for charities has been revealed. The Civil Society determine revealed covers non-market charities within the NPISH (non-profit establishments serving households) sector. It doesn’t embody market supplier charities who’ve handed the market take a look at and due to this fact sit within the company sector (these information should not presently measured by ONS on a Nationwide Accounts foundation), mutuals, social enterprises or group curiosity firms. An estimate of the financial contribution of volunteering can be offered, however this isn’t included within the “All DCMS Sectors” whole because of it being a part of the casual economic system and due to this fact not a part of the standard methodology of calculating GVA. An estimate for the Workplace for Civil Society has not been included within the GVA expressed in chained quantity measures. This can be developed sooner or later if there’s adequate consumer demand.

For the enterprise demographics, the Civil Society sector can’t be uniquely recognized within the Annual Enterprise Survey; the information supply used for the opposite DCMS Sectors. Contextual data on the variety of companies within the Civil Society sector is offered. Nonetheless these are non-official statistic sources and due to this fact shouldn’t be added to the opposite DCMS Sector totals.

2.2 Artistic Industries

The Artistic Industries have been outlined within the Authorities’s 2001 Artistic Industries Mapping Doc as “these industries which have their origin in particular person creativity, talent and expertise and which have a possible for wealth and job creation by way of the technology and exploitation of mental property”. Primarily based on this definition DCMS labored intently with stakeholders to find out which occupations and industries must be thought of artistic.

These have been decided on the premise of artistic depth:

1. Via session a listing of Artistic Occupations have been recognized^{[footnote 1]}.
2. The proportion of artistic jobs in every business was calculated (the artistic depth)
3. Industries with artistic depth above a specified threshold are thought of Artistic Industries

The definition is a UK definition based mostly on worldwide industrial classifications. The SIC codes used to seize the Artistic Industries sector and sub-sectors are proven within the tables revealed alongside this steering notice. See the Artistic Industries Financial Estimates methodology notice for a extra detailed clarification of how the definition has been derived.

2.3 Cultural Sector

DCMS has proposed a definition of the Cultural Sector that greatest displays UK coverage based mostly on the provision of knowledge by way of the present customary industrial classification (right down to 4 digits). DCMS have outlined the Cultural Sector as these industries with a cultural object on the centre of the business. Primarily based on this precept the 4-digit SICs proposed to make up the Cultural Sector and sub-sectors are proven within the tables revealed alongside this steering notice.

2.4 Digital sector

The definition used on this launch was developed by the OECD utilizing the UN Commonplace Industrial Classifications (SICs) and due to this fact has the benefit of worldwide comparability. The SIC codes used on this definition and for Digital sub-sectors are proven within the tables revealed alongside this steering notice.

2.5 Playing

The definition of playing used within the DCMS Sectors Financial Estimates is per the internationally agreed definition, SIC 92, Playing and betting actions.

2.6 Sport

For the needs of those publications the EU agreed core/statistical Vilnius definition of sport has been used, this incorporates solely these 4-digit SIC codes that are predominately sport (see tables revealed alongside this steering notice).

DCMS additionally publish estimates of sport based mostly on the broad Vilnius definition. It is a extra complete measure of sport which considers the contribution of sport throughout a variety of industries, for instance sport promoting, and sport associated building. The DCMS Sport Satellite tv for pc Account is predicated on an EU agreed methodology. Nonetheless, because of the time lag with the game satellite tv for pc account and additional growth required to make the game satellite tv for pc account replicable on an annual foundation, the statistical definition is getting used on this publication of estimates for DCMS sectors to permit the contribution of sport to be thought of in a means which is per the opposite sectors.

2.7 Telecoms

The definition of telecoms used within the DCMS Sectors Financial Estimates is per the internationally agreed definition, SIC 61, Telecommunications. Please notice that in addition to showing as a sector by itself, Telecoms can be solely included inside the Digital Sector as one of many sub-sectors.

2.8 Tourism

Tourism is outlined by the traits of the buyer when it comes to whether or not they’re a vacationer or resident. This, due to this fact, differs from “conventional” industries resembling playing or telecoms that are outlined by the products and providers produced themselves, and implies that a unique strategy to defining the business should be used. The UK estimates are based mostly on the methodology and definition set out within the UN Worldwide Suggestions for Tourism Statistics 2008 (IRTS 2008).

The desk revealed alongside this steering provides particulars of the ‘tourism industries’. The ‘tourism industries’ are a broad class that can be utilized to outline tourism nevertheless they’re much extra in depth than tourism alone (e.g. hospitality). Due to this fact ratios are calculated (based on tourism spend information from surveys) which might then be utilized to be able to get hold of direct tourism estimates. There’s additionally a tourism contribution from exterior the tourism industries which is described as ‘different consumption merchandise’. As soon as calculated, the tourism ratios are utilized to present estimates for tourism GVA and employment.

Exports and Imports for tourism are from estimates of spend by abroad residents within the UK and spend by UK residents abroad respectively. Information are taken immediately from the ONS Worldwide Passenger Survey, during which there is no such thing as a try to classify items and providers or spend by business.

2.9 Different definitions

DCMS additionally publish estimates for the Audio Visible sector (for all measures) and the Pc Video games sector (for GVA Present Worth estimates and Employment measure).

The definition of the Audio Visible sector (see beneath) is meant to replicate the sectors lined by the EU Audio Visible Media Providers Directive.

• 59.11 – Movement image, video and tv programme manufacturing actions
• 59.12 – Movement image, video and tv programme post-production actions
• 59.13 – Movement image, video and tv programme distribution actions
• 59.2 – Sound recording and music publishing actions
• 60.1 – Radio broadcasting
• 60.2 – Tv programming and broadcasting actions
• 63.91 – Information company actions
• 63.99 – Different data service actions n.e.c.
• 77.22 – Renting of video tapes and disks
• 77.4 – Leasing of mental property and comparable merchandise, besides copyrighted works

For Pc Video games, a 5-digit SIC code is used alongside a 4-digit SIC. The estimates for the Pc Video games business have been calculated based mostly on the SIC codes:

• 58.21 – Publishing of Pc Video games
• 62.01/1 – Prepared-made interactive leisure and leisure software program growth

Quite a few software program programming firms in 62.01 – ‘Pc programming actions’ may additionally contribute to the output of laptop video games, as a part of a variety of programming actions. This isn’t included in these laptop video games estimates, however could have been implicitly included within the ‘IT, software program and laptop providers’ group in the principle estimates.

3. Limitations

DCMS makes all efforts to offer the absolute best estimates. Nonetheless, inevitably there are a selection of limitations to the information which customers ought to concentrate on.

3.1 Measurement points

Civil Society

In July 2016 DCMS took on accountability for the Workplace for Civil Society, which is answerable for charities, voluntary organisations or trusts, social enterprises, mutuals and group curiosity firms. The Civil Society sector just isn’t like a standard business and due to this fact information should not available within the normal information sources. The place potential, information are offered from official sources. Some estimates from different sources are quoted to offer a wider context however can’t be added to the official outcomes. It’s due to this fact doubtless that the estimates for the civil society are an underestimate for this sector.

For employment, individuals who work in a “charity, voluntary organisation or belief” are reported within the DCMS estimates.

There are not any reported estimates for exports or imports of products and providers for the civil society sector.

For the enterprise demographics, the Civil Society sector can’t be uniquely recognized within the Annual Enterprise Survey, the information supply used for the opposite DCMS Sectors. Contextual data on the variety of companies within the Civil Society sector is offered. Nonetheless these are non-official statistic sources and due to this fact shouldn’t be added to the opposite DCMS Sector totals.

Commonplace Industrial Classifications (SICs)

Estimates have been constructed from ONS Official Statistics which use worldwide classifications. This is a crucial component of the methodology because of availability of knowledge and to allow worldwide comparability. Nonetheless, consequently there are substantial limitations to the underlying classifications. Because the steadiness and make-up of the economic system adjustments the worldwide classifications are much less capable of present the element for essential components of the UK economic system associated to DCMS sectors, and due to this fact greatest match SIC codes have been used to provide these estimates.

Tourism sector – GVA and Employment estimates

The info within the newest Tourism Satellite tv for pc Account (2018) include revised estimates for 2016 and 2017, incorporating improved information from a lot of Tourism Satellite tv for pc Account (TSA) supply datasets. The biggest affect on revisions has been pushed by the incorporation of revised Worldwide Passenger Survey (IPS) information following the introduction of recent and improved methodologies to this survey. Extra data on the improved IPS methodology and the related impacts is obtainable. The brand new methodology produces larger estimates of spend for UK residents visiting overseas and abroad residents visiting the UK. Which means revealed estimates of UK and abroad guests are actually per administrative information on whole passenger numbers coming into and leaving the UK.

In addition to current enhancements to the IPS, a number of enhancements have been made to the Nice Britain Day Visits Survey (GBDVS) in 2016:

• Questionnaire enhancements to make the survey extra participating and straightforward to finish
• Questionnaire revisions required as a part of the ‘merging’ of GBDVS with the Nice Britain Tourism Survey (GBTS) on-line piloting
• From January 2016, the weekly pattern measurement contacted for the broader GBDVS/GBTS mixed surveying elevated from 673 to 1,000

Because of these adjustments, a 15% enhance was noticed within the ranges of visits reported by respondents. To make sure 2015 information are per the methodological enhancements, and to permit appropriate comparisons with 2016 information, the 2015 information have been revised according to the elevated stage of reporting of day visits. This modification has not been applied within the UK Tourism Satellite tv for pc Account previous to 2015.

Extra data on the adjustments to the GBDVS could be discovered on slide 8 of The Nice Britain Day Customer 2017 Annual Report and within the ONS Tourism Satellite tv for pc Account report revealed on twenty eighth November 2018.

Blue Guide-consistent revisions to different supply information have additionally pushed smaller revisions to the TSA, for instance, the family ultimate consumption expenditure information as contained inside the enter–output provide and use tables.

Attributable to these revisions, the brand new GVA and employment figures for 2016 to 2019 revealed in 2020 should not comparable with UK-TSA figures previous to 2016, as these adjustments haven’t been applied within the information previous to 2016.

Tourism GVA and employment figures for the newest 12 months are provisional and will probably be up to date when the Tourism Satellite tv for pc Account estimates are revealed yearly.

Trade breakdowns

The estimates within the Employment launch are based mostly on survey information from the Annual Inhabitants Survey (APS), which is itself a spinoff of the Labour Power Survey (LFS). It is a family survey with business self-reported by the person finishing the survey. This gives good data on demographics, however results in some inaccuracies on the business breakdown. This must be borne in thoughts when utilizing these estimates. Methodological details about the LFS could be discovered right here.

3.2 Information sources

Survey information

All the Financial Estimates are based mostly on survey information. As with all information from surveys, there will probably be an related error margin surrounding these estimates^{[footnote 2]}. Whereas these information present one of the best out there supply of data there’s usually volatility, particularly on the 4 – digit SIC stage which is used to provide estimates for DCMS sectors.

ABS survey design adjustments

The ABS (Annual Enterprise Survey) is used to interrupt down the Provide and Use tables estimates to the 4 digit stage. Nonetheless, customers ought to notice that the ABS inhabitants was expanded in 2015 to incorporate roughly 92,000 solely Pay As You Earn (PAYE)-based companies. This led to a rise within the variety of companies within the total inhabitants of roughly 4%. In 2015, these companies elevated the extent of turnover by 0.4% and GVA by 0.8%.

Customers must also notice {that a} pattern re-optimisation has been included within the ABS estimates for 2016. That is carried out each 5 years to enhance the effectivity of the pattern estimation and scale back sampling variability as a part of the common course of to enhance estimates.

Each of those survey design adjustments have a potential affect on the DCMS GVA and Enterprise Demographics estimates though for the GVA estimates, the ABS is simply getting used to offer a proportion of the SUT so these adjustments ought to have minimal affect on the general figures.

Regional GVA

Regional GVA estimates are solely out there at a 2 digit SIC code breakdown, and better. The place the required element just isn’t out there in these tables the ABS has been used to allocate regional GVA on the 4-digit stage. Nonetheless, information for aGVA within the ABS are damaging for some facets of SIC 91 so estimates for SIC 91.01, 91.02 and 91.03 make use of gross sales information from the ABS to allocate SIC 91 on the 4-digit stage.

Employment

The Annual Inhabitants Survey (APS) is taken into account to be one of the best supply of data for headlines estimates of UK jobs, together with employed and self-employed jobs. Nonetheless there are important weaknesses with the business breakdowns as they’re based mostly on self-reporting of people (and due to this fact are sometimes inconsistent with how companies are allotted in Nationwide Accounts). This must be borne in thoughts when utilizing these estimates.
Nonetheless, comparisons present that the variations between APS and different sources with higher business breakdowns (e.g. the Enterprise Register and Employment Survey, BRES, which is a enterprise survey and due to this fact all workers are allotted to the identical SIC because the enterprise itself, giving better accuracy and consistency with different measures) should not giant. Due to this fact, APS has been used on this evaluation for its demographic data and data on occupations.

Companies

The variety of companies are revealed, and damaged down by completely different demographics. As the information are from the ABS there are some areas of the economic system which aren’t lined. It covers the non-financial companies economic system. It excludes monetary and insurance coverage (Part Okay), Public administration and defence (Part O), Schooling (public provision in Part P) and Well being (SIC 86.2, public provision in SIC 86.1 and 86.9 in Part Q). This isn’t a big subject for DCMS sectors the place there’s a good protection, however does have an effect on UK totals. Time sequence comparisons must also be handled with warning because the ABS is about up with the intention of offering good data on the construction of the economic system in a given 12 months, slightly than an correct pattern over time (for instance revisions should not made to historic information to permit constant comparability over time).

Digital commerce and E-commerce

The significance of digital commerce is rising. E-commerce (i.e. these items and providers which can be ordered and/or delivered digitally) is a crucial subset of the broader digital commerce, nevertheless, little data presently exists on the size of cross-border commerce flows which can be affected by this.

There are substantial challenges in relation to the measurement of cross-border e-commerce flows. There’s a lack of clear definition of what constitutes ‘digital commerce’ and of a complete conceptual measurement framework. This drawback is compounded by the emergence of enterprises with new enterprise fashions (e.g. Airbnb, Uber and so on) whose exercise is tough to seize with typical statistical strategies.

Though most statistical businesses, together with the ONS and HMRC, point out that present commerce statistics don’t considerably under-report digital commerce flows, it’s usually accepted that e-commerce is creating important worldwide commerce that isn’t picked up by present information assortment methods. Essentially the most problematic space is the measurement of commerce in e-services resembling digital downloads and functions. Worldwide organisations like OECD and WTO recognise this drawback and have prioritised work on this space. Nonetheless it’s a important weak point within the present strategy.

Exports and imports of products

Estimates for exports and imports of products have been revealed for the primary time final 12 months (2017). The estimates are based mostly on information from HMRC’s Abroad Commerce Statistics, during which entries are listed in Mixed Nomenclature 2008 (CN08) format, which is predicated on the Harmonised System (HS) of tariff nomenclature. That is an internationally standardised system of coding for classifying items for commerce. DCMS Sectors are outlined on the 4 digit SIC code stage, and due to this fact a conversion device from SIC to the CN08 codes was used to seek out one of the best match. In response to session suggestions for the reason that final publication, the CN08 codes related to the Crafts sub-sector have been revised. These revisions have been made to the again time sequence, as revealed in June 2018

Commerce in items and commerce in providers

Estimates are offered for each commerce in items and commerce in providers. These are based mostly on completely different information sources, and consequently have been introduced as two separate figures. Information on commerce in items are collected from HMRC’s Intrastat survey and Customs import and export entries, which document the motion (for commerce functions) of products throughout worldwide borders. As such, the information are gathered beneath the cross-border precept of commerce. In the meantime, DCMS estimates of commerce in providers are based mostly on information from the ONS Worldwide Commerce in Providers (ITIS) datatset. These information are collected by way of survey and are gathered beneath the change of possession precept of commerce. To replicate these variations, between the 2 information sources, the commerce in providers and commerce in items information are introduced individually and warning is suggested when including the 2 sources collectively.

3.3 Sector definitions

Civil Society

The Workplace for Civil Society are answerable for charities, voluntary organisations or trusts, social enterprises, mutuals and group curiosity firms. The Civil Society sector just isn’t like a standard business and due to this fact information should not available within the normal information sources. The place potential, information are offered from official sources. Some estimates from different sources are quoted to offer a wider context however can’t be added to the official outcomes. It’s due to this fact doubtless that the estimates for the civil society are an underestimate for this sector

For employment, individuals who work in a “charity, voluntary organisation or belief” are reported within the DCMS estimates. There are not any reported estimates for exports or imports of products and providers for civil society. For GVA in present costs, an estimate for charities has been revealed for the primary time in November 2017. An estimate of the financial contribution of volunteering can be offered, however this isn’t included within the “All DCMS Sectors” whole because of it being a part of the casual economic system and due to this fact not a part of the standard methodology of calculating GVA. An estimate for the Workplace for Civil Society has not been included within the GVA expressed in chained quantity measures.

For the enterprise demographics, the Civil Society sector can’t be uniquely recognized within the Annual Enterprise Survey, the information supply used for the opposite DCMS Sectors. Contextual data on the variety of companies within the Civil Society sector is offered. Nonetheless these are non-official statistic sources and due to this fact shouldn’t be added to the opposite DCMS Sector totals.

Artistic Industries

Estimates within the DCMS Sectors Financial Estimates for the Artistic Industries have changed the beforehand used methodology for Artistic Industries Financial Estimates. Whereas there are a lot of of the restrictions which apply to the earlier methodology, significantly round definitions and SIC codes, there are an a variety of benefits to the brand new strategy which scale back the information limitations. These embody:

• Accounting for under-coverage (together with microbusinesses and black market exercise)
• Higher GVA time sequence information (the ABS just isn’t supposed for use for comparability over time)
• Higher business data for employment (jobs)
• An strategy which permits constant comparability with nationwide estimates throughout financial measures together with the potential to provide productiveness estimates

See the Artistic Industries methodology notice for extra particulars on limitations, together with specifics on crafts, music, style and laptop video games.

Tradition

While the DCMS strategy to measurement of tradition makes an attempt to raised outline this sector, there are important limitations because of the restricted granularity of the usual industrial classifications. There are lots of instances the place tradition varieties a small a part of a unique business classification and due to this fact for can’t be individually recognized and assigned as tradition utilizing customary information sources. DCMS consulted on definition of Tradition and revealed a response in April 2017.

Operation of historic website and comparable customer points of interest

The Heritage sub-sector is depicted in our estimates by one SIC code “91.03 Operation of historic websites and constructing and comparable customer points of interest”. DCMS use customary industrial classification (SIC) codes to assemble these estimates, which permits worldwide comparability in addition to comparability with nationwide estimates. Because the steadiness and make-up of the economic system adjustments, the worldwide SIC codes used listed here are much less capable of present the element for essential components of the UK economic system associated to DCMS sectors. It’s due to this fact recognised that the revealed estimates are prone to be an underestimate for the Heritage sub-sector.

Digital

Financial estimates for the Digital sector supersede the earlier Digital Sector estimates. The definition used for the Digital Sector has the benefit of worldwide comparability. Nonetheless, it doesn’t permit consideration of the worth added of “digital” to the broader economic system e.g. in well being care of building. DCMS coverage accountability is for digital throughout the economic system and due to this fact this can be a important weaknesses within the present strategy.

Sport

For the needs of this publication the statistical Vilnius definition of sport has been used. This incorporates solely these 4 digit Commonplace Industrial Classification (SIC) codes that are predominately sport. DCMS additionally publishes estimates of sport based mostly on the broad Vilnius definition. It is a extra complete measure of sport which considers the contribution of sport throughout a variety of industries, for instance sport promoting, and sport associated building. The DCMS Sport Satellite tv for pc Account is presently being developed and due to this fact has not been utilized in these estimates.

Tourism

Estimates for tourism used are based mostly on a unique methodology to all different sectors, they’re taken from the Tourism Satellite tv for pc Account. That is an internationally really helpful methodology for measurement of the contribution of tourism to the economic system.

This technique makes use of survey information to allocate spend by business, which produces strong measures of GVA and “tourism ratios”. The tourism ratios are then utilized to employment and variety of enterprises to get estimates of direct tourism for these measures. This requires a big assumption in regards to the ratio of spend to employment/variety of enterprises. The identical ratios are additionally utilized for employed and self-employed, regardless of the potential variations within the make-up of those two teams. Whereas there are limitations to this strategy, it gives a significantly better estimate than purely taking the broad group of “tourism industries”, a lot of which solely include small proportions of tourism jobs.

4. GVA

The methodology for estimates of gross worth added (GVA) for DCMS sectors has been moved to a technical and high quality assurance report, revealed alongside the newest launch.

5. Regional GVA

The methodology for estimates of regional gross worth added (GVA) for DCMS sectors has been moved to a technical and high quality assurance report, revealed alongside the newest launch.

6. Employment

This part gives particulars of the methodology used to estimate employment. Employment within the publication is measured by variety of jobs. For extra data, please see the standard assurance doc for the employment estimates.

Employment estimates are made up of all first and second jobs in every of the DCMS sectors. The roles are included if the job is in a DCMS sector, whatever the occupation. For instance, an accountant in an promoting agency can be counted as being within the Artistic Industries, regardless of the occupation not being artistic. Estimates are produced for each employed and self-employed jobs.

6.1 Information Sources

The Labour Power Survey (LFS) which feeds into the Annual Inhabitants Survey (APS) is taken into account to be one of the best supply of data for headlines estimates of jobs, together with employed and self-employed jobs. Nonetheless there are important weaknesses with the business breakdowns as they’re based mostly on self-reporting of people, slightly than on data from enterprise returns (and are due to this fact usually inconsistent with the place companies are allotted in Nationwide Accounts). Due to this fact the LFS and APS information on business breakdowns must be handled with warning. Nonetheless, comparisons present that the variations between APS and different sources with higher business breakdowns (e.g. the Enterprise Register and Employment Survey, BRES, which is a enterprise survey and due to this fact all workers are allotted to the identical SIC because the enterprise itself, giving better accuracy and consistency with different measures) should not giant. Due to this fact, APS has been used on this evaluation for its demographic data and data on occupations.

It must be famous, this strategy just isn’t per nationwide estimates by business, however is comparable with nationwide totals for all industries, and demographic data at a nationwide stage.

6.2 Estimates

Employment within the launch covers all first and second occupations.

With the intention to rely the occupations, the information are first restricted to those that are workers or self-employed (predominant job – INECAC05 = 1 or 2; second job – SECJMBR = 1, 2 or 3). They’re then restricted solely to those that work within the related DCMS sector. Lastly, information are weighted based on the individual weighting (PWTA16). Confidence intervals could be constructed on the 95 per cent confidence stage based on steering within the LFS consumer guide.

Excluding Tourism, every sector is made up of full 4-digit SICs which implies that overlaps between sectors could be simply estimated, based mostly on the place a selected code is included in a number of sectors.

6.3 Demographics

The info could be cut up by varied demographic teams. These (and the APS variables used) are:

• Employed/Self-employed (INECAC05, SECJMBR)
• Nationality – EU/non-EU (NATOX7)
• Area (first job GORWKR, second job GORWK2R)
• Ethnicity (ETHUK11)
• Gender (Intercourse)
• Age (Age)
• Highest stage of qualification (HIQUL15D)
• Full time/half time (FTPT)
• Socio-economic classification (NSECMJ10)

6.4 Disclosure

All figures beneath 6,000 are supressed to be able to stop any disclosure of non-public information within the statistics in accordance with APS steering. The imply worth for weights within the APS information set is round 200 (199 in 2014 and 196 in 2013), though the utmost can take values of three,000 or extra. Due to this fact a determine of 6,000 may sometimes be based mostly on a pattern of 30 people, however could in some instances seek advice from fewer.

6.5 Tourism

A unique methodology is used to estimate employment within the Tourism sector. Tourism whole employment as much as 2015 is offered within the Tourism Satellite tv for pc Account (TSA) Desk 7. Tourism ratios are utilized to Tourism Trade figures to present an estimate of tourism direct employment.

Within the July 2018 publication, the 2017 Tourism Satellite tv for pc Account was not out there and due to this fact provisional estimates have been produced to provide the 2016 and 2017 tourism direct employment estimate. Tourism direct employment estimates for 2016 and 2017 have been calculated utilizing tourism ratios as at 2015 and utilized to the newest Tourism industries information. Tourism whole employment as much as 2015 is offered within the Tourism Satellite tv for pc Account (TSA) Desk 7. The 2016 and 2017 figures are provisional and will probably be up to date in 2019 with the Tourism Satellite tv for pc Accountestimates revealed on 28 November 2018.

To calculate overlap between the Tourism sector and different DCMS sectors, SIC codes that seem within the TSA and in different DCMS sectors are recognized. The related tourism ratio (from the TSA) is utilized to the whole employment quantity in these SICs (from APS information) to provide an estimate of the variety of jobs that have to be discounted from the tourism direct employment determine to keep away from double counting. That is performed on the 4 digit SIC stage. There’s a full overlap with the ‘Cultural actions’ part of the TSA and a partial overlap with the ‘Sport and recreation actions’ class (SICs 92.00, 93.11, 93.19 and 77.21).

6.6 Civil Society

The employment estimates included on this report try to measure jobs for this sector for individuals who “work in a charity, voluntary organisation or belief” (SECTRO03=7). That is an underestimate for the sector and doesn’t embody volunteers, social enterprises and mutuals. Exterior information sources have been used the place acceptable to present an approximation of the scale for these components not captured within the DCMS sectors. Employment estimates have been produced from 2011 together with the Workplace for Civil Society to assist comparisons over time.

7. Imports and Exports of Providers

The following few chapters (Chapters 7, 8 and 9) relate to the Commerce statistics for the DCMS Sectors. For a extra complete clarification of the information sources and information high quality processes used for these statistics, please seek advice from the High quality Assurance reviews – situated right here and right here. Nonetheless, these chapters have been saved right here for additional reference.

This part gives particulars of how estimates of imports and exports of providers are produced. Estimates within the publication are in present costs (i.e. not adjusted for inflation) and are based mostly on information from the Worldwide Commerce in Providers (ITIS) survey.

7.1 Methodology

For all sectors besides Tourism and Civil Society, to acquire estimates of imports and exports the information is first restricted to organisations which can be listed as belonging to a SIC code for one of many DCMS sectors. Checks are then made to the output tables by market to make sure that the statistics revealed don’t disclose any probably delicate data referring to any identifiable enterprise. Information are discovered per SIC code after which aggregated up for every DCMS sector and for all DCMS sectors mixed.

Imports and exports in Civil Society sector are minimal and never simply recognisable in official statistics information sources. Civil Society are due to this fact not included within the DCMS sector totals. Estimates of imports and exports for Tourism are based mostly on a unique methodology to different DCMS sectors, as described in Chapter 10.

Whole UK estimates that are used to calculate the proportion of UK whole for every sector are taken from the annual Pink Guide, which balances inward and outward transactions:

• Exports of providers, KTMQ
• Imports of providers, KTMR

Observe on SIC 92.00: The Playing sector (SIC 92.00) is comparatively small and due to this fact adjustments in buying and selling exercise, reporting construction or industrial classification for any enterprise can have a big affect on the general sector figures. This was witnessed in 2015 and 2017 information significantly, while in 2018 the exports for providers failed disclosure checks for comparable causes. Care ought to due to this fact be taken when evaluating these figures over time.

7.2 Commerce by vacation spot/supply

The estimates within the launch are additional damaged down by (right as of the 2018 information, revealed February 2020):

• EU (together with figures for all EU member states)
• Chosen non-EU nations (e.g. Australia, Canada, China, India, Japan, USA)
• Continent (Europe, Americas, Asia, Africa and Oceania)
• Chosen sub-regional breakdowns (e.g. Latin America & Caribbean)

Plans are being developed to publish for a wider choice of nations within the February 2021 publication.

8. Imports and Exports of Items

This part gives particulars of how estimates of imports and exports of products are produced.

8.1 Background

DCMS sectors are usually outlined utilizing the 4 digit Commonplace Industrial Classification (SIC) code stage, and the main target is whether or not the business doing enterprise is a DCMS sector. For commerce in items, focus is on whether or not the great, or commodity, is a DCMS sector ‘good’.

Items are listed utilizing the Mixed Nomenclature (CN) format for commodity codes, which in flip is predicated on the Harmonised System (HS) of tariff nomenclature. That is an internationally standardised system of coding for classifying items for commerce. CN codes are 8 digit codes that determine classes of products. The primary 6 digits correspond to the HS code, with the seventh and eighth digits including additional element.

Information for non-EU commerce in items are collected from customs declarations made to HMRC when items go away or enter the UK (Customs Dealing with of Import and Export Freight (CHIEF) system). Information for items commerce with EU nations are presently collected by way of a survey of buying and selling companies generally known as Intrastat, additionally managed by HMRC. This displays the truth that, within the absence of customs controls for commerce inside the EU, declarations should not acceptable as a technique for measuring commerce. A reporting of whole commerce above set thresholds (£250,000 for exports and £1,500,000 for imports) is reported; beneath threshold commerce averages (BTTA) are estimated.

8.2 Methodology

The methodology includes the next processes:

1. Figuring out the DCMS Sector commodity codes (items)
2. Summing up commerce values from each Intrastat and CHIEF for these codes to get whole commerce values

8.3 Figuring out commodity codes

To determine DCMS Sector commodity codes, it has been essential to use a conversion between DCMS sector 4 digit SIC codes and CN codes to specify an preliminary set of CN codes linked to DCMS sectors. That is performed utilizing the European Classification of Financial Actions (NACE) 2.1 on the 4 digit stage which is equal to 4 digit SIC codes.

In contrast to SIC codes, which have been unchanged since 2007, commodity codes are liable to be refreshed yearly. Due to this fact, as soon as DCMS sector commodity codes have been recognized for a baseline 12 months, codes could be fed forwards and backwards to work out how they’ve developed over time and be sure that the codes comprising our sectors are appropriately captured. Moreover, for the 2020 autumn publication (masking information from 2015-2019), a brief refresh of for NACE-CN look-up course of (in follow the Classification of Merchandise by Exercise (CPA)-CN lookup course of, which mirrors NACE) was carried out, and recognized six additional codes from 2015, and eight additional codes from 2017, relevant for the DCMS sectors.

From this course of, it has been constantly discovered that there are not any items related to the Playing and Telecoms sectors. Moreover, there are not any formally recognised imports or exports related to the Civil Society sector.

Total, which means that estimates of the worth of imports and exports of products in DCMS sectors solely cowl Artistic Industries, Cultural Sector, Digital Sector and Sport.

The total listing of DCMS SIC codes which didn’t have any corresponding CN codes, i.e. they didn’t have any items related to that business are listed in Desk 8.3 beneath.

Desk 8.3: Listing of SIC codes with none items

SIC	Description
18.2	Copy of recorded media
46.51	Wholesale of computer systems, laptop peripheral tools and software program
46.52	Wholesale of digital and telecommunications tools and elements
47.63	Retail sale of music and video recordings in specialised shops
47.64	Retail sale of sports activities items, fishing gear, tenting items, boats and bicycles
58.12	Publishing of directories and mailing lists
58.21	Publishing of laptop video games
59.12	Movement image, video and tv programme post-production actions
59.13	Movement image, video and tv programme distribution actions
59.14	Movement image projection actions
60.1	Radio broadcasting
60.2	Tv programming and broadcasting actions
61.1	Wired telecommunications actions
61.2	Wi-fi telecommunications actions
61.3	Satellite tv for pc telecommunications actions
61.9	Different telecommunications actions
62.01	Pc programming actions
62.03	Pc amenities administration actions
63.91	Information company actions
63.99	Different data service actions n.e.c.
70.21	Public relations and communication actions
73.11	Promoting businesses
73.12	Media illustration
74.1	Specialised design actions
74.3	Translation and interpretation actions
77.21	Renting and leasing of leisure and sports activities items
77.22	Renting of video tapes and disks
77.4	Leasing of mental property and comparable merchandise, besides copyrighted works
85.51	Sport and recreation schooling
85.52	Cultural schooling
90.01	Performing arts
90.02	Help actions to performing arts
90.04	Operation of arts amenities
91.01	Library and archive actions
91.03	Operation of historic websites and buildings and comparable customer points of interest
92	Playing & betting actions
93.11	Operation of sports activities amenities
93.12	Actions of sports activities golf equipment
93.13	Health amenities
93.19	Different sports activities actions
95.11	Restore of computer systems and peripheral tools
95.12	Restore of communication tools

Moreover, the set of commodities referring to the Crafts subsector was revised in 2018, following engagement between DCMS and the Crafts Council to completely perceive which codes greatest represented it. This has resulted in the usage of some codes which don’t match the Crafts SIC code (32.12), and the elimination of some codes which do match it (32.12).

A spreadsheet offering a listing of product codes inside DCMS sectors for the information from 2017-19 can be out there from our newest commerce in items statistics.

8.4 From commodity codes to whole commerce values

In easy phrases, the Intrastat and CHIEF datasets for exports and imports are respectively added up for the DCMS sector commodity codes to derive estimates for the DCMS sectors.

Nonetheless, a revision to the information implies that the “beneath threshold commerce common” (BTTA) estimates for EU commerce are not offered on the 8-digit CN stage we work to, once they have been discovered to be much less strong at this stage of granularity. They’re as an alternative solely out there at a much less granular stage (2-digit HS commodity code).

Evaluation carried out by DCMS confirmed that eradicating BTTA commerce had an affect of round 3.6% on the estimate of exports of DCMS Sector items; and 5.3% on the estimate of imports of DCMS Sector items.

Nonetheless, DCMS had a transparent consumer want of comparability of commerce in items between EU and non-EU nations. Due to this fact, a revised BTTA metric developed by DCMS has been used for this publication. This makes use of 2-digit BTTA (a extra strong estimate) to “allocate” BTTA to completely different 8-digit commodity codes. Evaluation for this discovered outcomes broadly just like the unique strategy (the brand new estimate was 0.2-0.3% larger for exports; and 0.6-0.7% larger for imports, for DCMS Sector items). This has now been utilized for this publication, and a back-series calculation utilized to 2015. Because the change took impact from 2015, it implies that information earlier than 2015 is not comparable with the latest estimates.

This calculation varieties a part of the method above, the place such revised BTTA estimates are added to the Intrastat estimates of commerce in order that the ultimate calculation is:

• Imports: EU Intrastat arrivals + DCMS BTTA arrivals estimates + CHIEF imports
• Exports: EU Intrastat dispatches + DCMS BTTA dispatches estimates + CHIEF exports

An additional change to notice is that, since 1 Could 2016, the UK has moved from a Basic Commerce system to a Particular Commerce system. This implies, for instance, that one thing transferring from Iceland to Norway by way of a British port will probably be counted as Iceland-Norway commerce. Below the final system, if the products had moved right into a warehouse on the UK mainland after arriving from Iceland, and earlier than transferring to Norway, it could have counted as Iceland-UK and UK-Norway commerce respectively. This doesn’t have an effect on the comparability of knowledge earlier than and after Could 2016; nevertheless, it’s nonetheless essential to know that the change has been made.

8.5 Disclosure

HMRC have suppressed information which can disclose delicate data referring to enterprise or nationwide pursuits. That is predominantly on the request of companies with nearly all of commerce. Extra data could be discovered right here.

8.6 Items estimates utilizing ONS information (August 2016)

In August 2016, an advert hoc launch was revealed offering estimates of exports of products for DCMS sectors. These estimates have been based mostly on Workplace for Nationwide Statistics UK Commerce in Items by Classification of Product by Exercise CPA(08). The definitions for every sector have been based mostly on the closest matching product code for every business. There have been no related product codes for Telecoms or Playing industries.

It was recognised that while this definition was not an ideal comparability of the merchandise exported to DCMS sectors, it offered a sign of exports of associated merchandise. Suggestions from customers additionally recommended that these information weren’t granular sufficient to have the ability to determine particular merchandise inside DCMS sectors. This was the principle cause for utilizing the HMRC commerce in items information.

The HMRC and ONS commerce in items statistics should not immediately comparable as they’re compiled on a unique foundation:

• HMRC statistics are based mostly on the ‘Cross-border’ or ‘Bodily motion’ precept: a superb is recorded as an export (import) if it bodily leaves (enters) the financial territory of a rustic
• ONS Steadiness of Funds estimates are based mostly on the ‘Change of Possession’ precept: items coming into and leaving the UK border should not recorded as imports or exports until they modify possession between UK residents and non-residents. As well as, the ONS information are seasonally adjusted.

The merchandise within the HMRC information are also extra granular which implies we could be extra selective than was potential when utilizing the ONS information in 2016. All these changes imply that the ONS and HMRC information should not immediately comparable and must be handled as two completely different sources.

9. Imports and Exports for the Tourism sector (Items and Providers Mixed)

This part gives particulars of how estimates of imports and exports for the Tourism sector are produced. Estimates within the publication are in present costs (i.e. not adjusted for inflation).

Estimates for the Tourism sector are taken from the Worldwide Passenger Survey, and are based mostly on the next definitions:

• Imports of tourism – spending by UK residents on journeys overseas
• Exports of tourism – spending by abroad residents throughout visits to the UK

These figures signify commerce in items and providers mixed and due to this fact should not immediately comparable with the commerce in providers or commerce in items estimates introduced for all different sectors (excluding Civil Society). Due to this fact, estimates of imports and exports of Tourism should not introduced within the DCMS sector totals.

For the autumn 2020 publication, methodological enhancements have been made to the Worldwide Passenger Survey (IPS) by the ONS. These significantly relate to the survey’s weighting course of and, particularly, associated to proof that the earlier estimation methodology was not offering correct outcomes for sure teams (e.g. underestimating visits by Chinese language residents). Because of this, a back-series from 2014 to 2019 has been produced for this 12 months with these revisions. Which means information revealed this 12 months should not immediately comparable with beforehand revealed estimates, together with these for information from earlier than 2014.

Whole UK estimates which can be utilized to calculate the proportion of UK whole for Tourism are taken from the annual Pink Guide:

• Exports of products and providers mixed, KTMW
• Imports of products and providers mixed, KTMX

10. Enterprise Demographics

This part gives particulars of the methodology used for the estimates inside the Enterprise Demographics publication together with the quantity and traits of companies in DCMS sectors. Please notice that information for the Civil Society sector should not out there on a foundation per the opposite DCMS sectors, and are due to this fact not included within the DCMS Sector whole. Additional data could be discovered within the high quality assurance doc right here

Customers ought to notice that there have been a lot of adjustments between the August 2016 publication and the February 2018 publication which have an effect on the comparability of estimates between these two releases. More moderen iterations have continued to comply with the February 2018 framework, apart from smaller year-on-year methodology adjustments:

• In August 2016, we revealed estimates of the variety of enterprises in DCMS sectors. As compared, from February 2018, now we have been publishing estimates of the variety of companies in DCMS sectors. Additional details about this distinction is included within the ‘Definition of a enterprise’ part of this chapter.
• Within the August 2016 publication, a direct definition of Tourism was used to estimate the variety of enterprises within the Tourism Sector. Stakeholder suggestions and additional discussions with Go to England and Tourism Intelligence Unit recommended that this was not probably the most correct strategy. From February 2016, revealed estimates for the Tourism Sector are based mostly on the “tourism industries” definition which covers all institutions for which the principal exercise is a tourism attribute exercise.
• Between 2015 and 2016, the Workplace for Nationwide Statistics (ONS) carried out a pattern re-optimisation for the Annual Enterprise Survey (ABS) – the survey on which the Enterprise Demographics estimates are based mostly. Pattern re-optimisations are carried out each 5 years as a part of the common course of to enhance estimates. The aim of such workouts is to enhance the effectivity of the pattern and estimation, and scale back pattern variability. This re-optimisation led to discontinuity between 2015 and 2016 inside small- and medium-sized companies (these with lower than 250 workers).
• In 2015, the ONS enterprise inhabitants was expanded to incorporate roughly 92,000 solely Pay-As-You-Earn (PAYE)-based companies. This led to a rise within the variety of companies within the total inhabitants of roughly 4%. Practically all of those companies (99.3%) have been in employment size-band one (0 to 9 workers) and almost half of them have been within the non-financial providers sector. Throughout the ABS the brand new inhabitants was used for the primary time in 2016. New estimates for 2015 have been due to this fact calculated to evaluate the affect of the inclusion of those further companies. An affect article and corresponding reference tables displaying the brand new 2015 estimates have been revealed on Friday 20 October 2017 by ONS. New estimates for 2015 (and earlier than) can’t be produced for disaggregation of the information, which incorporates the extent of knowledge for DCMS sectors. Which means solely 2016 information have been offered for DCMS sectors (apart from area for overseas owned tables the place 2015 is the newest 12 months), and comparisons with historic information are due to this fact not potential. Additional data could be discovered within the ABS bulletin

10.1 Information sources

The info underpinning this launch are taken from the Workplace for Nationwide Statistics (ONS) Annual Enterprise Survey (ABS). Instance copies of the questionnaire itself can be found right here. The survey covers the UK non-financial enterprise economic system, which accounts for about two-thirds of the economic system when it comes to gross worth added (GVA). The industries lined are:

• non-financial providers (contains skilled, scientific, communication, administrative, transport, lodging and meals, personal well being and schooling, and leisure providers)
• distribution (contains retail, wholesale and motor trades)distribution (contains retail, wholesale and motor trades)
• manufacturing (contains manufacturing, oil and gasoline extraction, vitality technology and provide, and water and waste administration)
• building (contains civil engineering, home constructing, property growth and specialised building trades resembling plumbers, electricians and plasterers)
• elements of agriculture (contains agricultural assist providers and looking), forestry and fishing

The industries not lined by the ABS are: public administration and defence, public provision of schooling and well being, all medical and dental follow actions, and finance and insurance coverage.

The sampling body for the ABS is the Inter-departmental Enterprise Register (IDBR) which data all organisations registered for Worth Added Tax (VAT) with HM Income and Customs (HMRC); registered for a Pay As You Earn (PAYE) scheme with HMRC; or registered as integrated companies at Corporations Home.

ONS present us with information on the 4-digit SIC stage, which we are able to then combination as much as produce estimates for our sectors and sub-sectors.

NB: While ONS are the suppliers of the information underpinning the Enterprise Demographics releases, they bear no accountability for his or her additional evaluation and interpretation inside DCMS Sectors Financial Estimates publications.

10.2 Methodology

Definition of a enterprise

Throughout the IDBR, data is held about a wide range of kinds of “enterprise unit”. These are described beneath together with how they’re referred to inside DCMS Enterprise Demographics releases.
Companies are outlined as any Reporting Models held on the Inter-Departmental Enterprise Register (IDBR). In the meantime, enterprise websites (additionally referred to inside DCMS Enterprise Demographics releases) are outlined as any native items held on the IDBR. The desk beneath outlines the variations between most of these unit and one other high-level grouping – the enterprise. Previous to the February 2018 publication, DCMS offered estimates of the variety of enterprises slightly than the variety of companies.

In follow, within the overwhelming majority of instances, the native unit and enterprise unit are the identical unit – solely about 2% of companies function multiple native unit^{[footnote 3]}. As such, more often than not the phrases ‘enterprise’, ‘enterprise’, and ‘native unit’ could also be used interchangeably.

Desk 10.2 Forms of unit within the IDBR^{[footnote 4]}

Enterprise unit	Description	Instance	Known as…
Enterprise	The smallest mixture of authorized items (usually based mostly on VAT and/or PAYE data) which has a sure diploma of autonomy. An enterprise carries out a number of actions at a number of places, however should be a sole authorized unit.	Arcadia (who personal Topshop, Topman, Dorothy Perkins and Burton amongst others)	“Enterprise” within the August 2016 publication
Reporting unit	Put merely, the Reporting Unit holds the mailing tackle to which the survey questionnaires are despatched. The questionnaire can cowl the enterprise as a complete, or elements of the enterprise recognized by lists of native items.	Topshop	“Enterprise” from the February 2018 publication onwards
Native unit	A neighborhood unit is an enterprise or half thereof (e.g. a workshop, manufacturing unit, warehouse, workplace, mine or depot) located in a geographically recognized place.	A person Topshop retailer e.g. on an area highstreet or in a shopping center	“Enterprise website” from the February 2018 publication onwards

Variety of companies

ONS present us with information on the variety of companies (reporting items) on the 4-digit SIC stage. The related SICs have been aggregated to provide estimates for every DCMS sector.

Measurement of companies (Employment band)

The usual definition of a small and medium sized enterprise (SMEs) is any enterprise with fewer than 250 workers. Taking this into consideration, DCMS have categorized employment measurement within the following classes:

• 0-9 workers (representing micro companies)
• 10-49 workers (representing small companies)
• 50-249 workers (representing medium companies)
• 250+ workers (representing giant companies)

Data on variety of workers is collected as a part of the ABS. ONS present DCMS with information on the variety of companies (reporting items) inside every of the employment measurement bands listed above.

Measurement of companies (Turnover band)

Turnover consists of whole takings or invoiced gross sales and receipts of the enterprise in reference to the sale of products and providers. Curiosity and comparable revenue, “Different Working Earnings” and extraordinary revenue is excluded. VAT invoiced to the shopper is excluded.

Data on turnover is collected as a part of the ABS. ONS present information on the variety of companies (reporting items) inside specified turnover measurement bands.

For the Could 2020 publication, the work on Turnover was prolonged, whereby breakdowns by employment measurement, area and so on. have been additionally performed by turnover (e.g. for every employment band, what’s the whole turnover generated for every DCMS sector?). This was in response to consumer want as a means of higher understanding the sectors, significantly following the outbreak of coronavirus (COVID-19).

Area

The regional distribution of DCMS companies is predicated on the variety of enterprise websites (native items). A neighborhood unit represents a person website (for instance a manufacturing unit or store) in a enterprise (reporting unit). One enterprise could have many websites, and, the place that is true, the placement of the enterprise is usually the principle working website or the pinnacle workplace.

Typically, companies (reporting items) are the identical as enterprises (authorized entities of the enterprise) however bigger enterprises could be cut up into a lot of reporting items based mostly on divisional construction, geographical concerns, sort of exercise, or different agreed reporting constructions. Reporting items return whole values that signify one or many native items of that enterprise.

To supply these estimates, the reporting unit information should be apportioned amongst the native items of that enterprise. Regional information are apportioned based mostly on native unit business classification, employment measurement and regional location. All ABS nationwide outcomes for the UK are produced utilizing reporting unit information, and the UK nationwide whole for every variable on the “all business” stage is the determine that the regional estimates for that variable will add as much as.

ONS present DCMS with information on the variety of enterprise websites (native items) inside every area (or devolved administration) for every 4-digit SIC. This data is then aggregated as much as produce estimates for DCMS sectors.

Overseas-owned companies

Possession standing is set by the nationality of a enterprise’ mum or dad firm. The business of the enterprise has been taken on the reporting unit stage so could not totally replicate the construction of the enterprise. Trade information should not out there on the native unit stage for these questions and so this breakdown must be handled with warning.

Information are cut up into UK-owned and foreign-owned (EU and non-EU) companies. The definitions for every class are outlined by Eurostat and figures for the EU exclude the UK-owned figures.

Variety of exporters and importers

Throughout the ABS, there are questions masking whether or not a enterprise has bought from or offered items and/or providers to people, enterprises or organisations exterior of the UK. This contains transactions with any of the enterprise’ mother and father or subsidiaries based mostly exterior of the UK (if relevant). The statistics revealed inside the DCMS launch cowl the quantity and proportion of companies in Nice Britain engaged within the worldwide commerce in items and providers. Northern Eire estimates on exporters and importers are revealed by the Division of Finance and Personnel Northern Eire (DFPNI).

Worldwide commerce is outlined because the import and/or export of products and/or providers. Companies buying and selling internationally are those that import or export items or providers.

Trade breakdowns of those information are based mostly on the principle exercise of the enterprise. For instance, if a enterprise undertakes each distribution and repair actions, however most of its employment is inside distribution, then the entire enterprise will probably be categorized as distribution. Attributable to methodological variations between the statistics from HM Income and Customs (HMRC) and the ABS statistics, the “commerce in items” figures inside every dataset should not immediately comparable and will differ. Methodological variations between the 2 releases embody variations in information sources and protection, measurement of worker rely, disclosure management procedures and the dealing with of revisions.

Enterprise Births and Deaths

In July 2020, following inner consumer curiosity, DCMS revealed for the primary time estimates on the variety of newly-registered companies (‘enterprise births’) and the variety of just lately de-registered companies (‘enterprise deaths’) for the DCMS sectors (excluding Civil Society), for the interval 2010-2018. An adjustment is made to the 2 most up-to-date years of the information by the information proprietor (the Workplace for Nationwide Statistics (ONS)) to permit for potential re-activations of companies (which due to this fact could not have solely ceased buying and selling), making certain a steadiness between well timed statistics and topic steering in regards to the probability of re-activations.

In contrast to the earlier enterprise demographics estimates listed above, for this information the main target is on “enterprises” slightly than “reporting items”. Estimates are reported for all DCMS sectors apart from Civil Society, and for the subsectors of the Artistic Industries, Cultural Sector and Digital Sector. Customers must also notice, nevertheless, that the definition of Tourism used on this report is equal to that used within the Enterprise Demographics publication, however differs to that utilized in all different DCMS Sector Financial Estimates reviews. Particularly, this launch is predicated on a “tourism industries” strategy, which counts any institution for which the principal exercise is a tourism attribute exercise.

The info underpinning this launch are taken from the Workplace for Nationwide Statistics (ONS) Inter-Departmental Enterprise Register (IDBR). The data used to create and keep the Inter-Departmental Enterprise Register (IDBR) is obtained from 5 predominant administrative sources. These are:

• HM Income and Customs (HMRC) Worth Added Tax (VAT) – merchants registered for VAT functions with HMRC
• HMRC Pay As You Earn (PAYE) – employers working a PAYE scheme, registered with HMRC
• Corporations Home – integrated companies registered at Corporations Home
• Division for Surroundings, Meals and Rural Affairs (DEFRA) farms
• Division of Finance and Personnel, Northern Eire (DFPNI)

In addition to these 5 predominant sources, a business information supplier, Dun and Bradstreet, is used to complement the IDBR with Enterprise Group data.

DCMS receives the information beneath settlement, calculates the totals for its SIC codes, and aggregates it as much as its sectors and sub-sectors. To assist minimise the chance of disclosure, figures are then rounded to the closest 5, once more following session with the ONS on greatest follow.

For extra data, please see the standard assurance doc.

11. Earnings

This part gives particulars of the methodology used to estimate earnings within the Digital Sector. Please notice that that is the primary launch the place DCMS have launched evaluation on earnings within the Digital Sector and Digital Occupations, based mostly on a request from coverage colleagues for data on this space. It’s due to this fact classed as an experimental statistic. DCMS plan to widen this evaluation additional to incorporate all DCMS sectors, if there’s adequate curiosity in these statistics sooner or later.

11.1 Definition

The ONS’s [definition of earnings] is the cost acquired by workers in return for employment. Most analyses of earnings take into account solely gross earnings, which is earnings earlier than any deductions are made in mild of taxes (together with Nationwide Insurance coverage contribution) and advantages^{[footnote 5]}.

11.2 High quality Report

An in depth high quality report outlining the traits of the information (e.g. information collections, sampling design, and response fee) has been revealed alongside the Digital Sector earnings report. This doc additionally summarises the standard assurance processes utilized throughout manufacturing of those statistics by the ONS in addition to by DCMS.

11.3 Information assortment

The estimates of earnings for the Digital sector are based mostly on the Annual Survey of Hours and Earnings (ASHE) dataset offered by Workplace for Nationwide Statistics (ONS). This contains details about the degrees, distribution and make-up of earnings and hours paid for workers in all industries and occupations throughout the UK.

Companies are surveyed in April of every 12 months. The survey makes use of a random pattern of 1% of all worker jobs from HM Income and Customs’s (HMRC’s) Pay As You Earn (PAYE) system, taken in January of the reference 12 months. The pattern is drawn in such a means that most of the identical people are included from 12 months to 12 months, thereby permitting longitudinal evaluation of the information.

Since ASHE is a survey of worker jobs, it doesn’t cowl the self-employed or any jobs inside the armed forces. Given the survey reference date in April, the survey doesn’t totally cowl sure kinds of seasonal work, for instance, workers taken on for less than summer season or winter work.

Validation is carried out on returned information that’s thought to be incomplete or probably inaccurate, based mostly on automated comparisons with information for comparable jobs or in opposition to information for a similar job in earlier years. In these instances, respondents could also be re-contacted by ONS to be able to confirm the data that has been offered.

11.4 Methodology

The definition of the Digital sector and Digital occupations are per DCMS definition of those sectors. Desk 2.4 on this report outlines the SIC codes used for the Digital sector.

The desk beneath reveals the listing of occupations used within the earnings report based mostly on 4 digit Commonplace Occupational Classification 2010 (SOC) codes. These SOC codes have been used based mostly on by work that has been undertaken by Nesta and techUK (2015) .

Desk 11.4: Listing of occupations in Earnings estimates based mostly on 4 digit Commonplace Occupational Classification 2010 (SOC) codes.

SOC	Description
1136	IT and telecommunications administrators
2133	IT specialist managers
2134	IT undertaking and programme managers
2135	IT enterprise analysts, architects & methods designers
2136	Programmers and software program growth professionals
2137	Net design & growth professionals
2139	IT & telecommunications professionals not elsewhere categorized
3131	IT operations technicians
3132	IT consumer assist technicians
5242	Telecommunications engineers
5245	IT Engineers

Imply vs Median

The headline statistics for ASHE are based mostly on the median slightly than the imply. The median is the worth beneath which 50% of workers fall. It’s ONS’s most well-liked measure of common earnings as it’s much less affected by a comparatively small variety of very excessive earners and the skewed distribution of earnings. Thus, gives a greater indication of typical pay than the imply.

What’s reported?

These statistics cowl the next areas:

• Digital Sector earnings – this seems on the breakdown of median annual earnings by employment standing e.g. full time and half time, age, and by sub-sector
• Gender pay hole – trying on the proportion distinction between males’s and ladies’s earnings within the digital sector
• Annual earnings by place of business – trying on the median annual earnings of digital sector workers by place of business (English areas, Scotland, Wales and NI)
• Annual incentive pay – trying on the quantity paid to an worker on account of assembly a efficiency or productiveness goal (bonuses and so on.)
• Earnings by Digital Occupation – (by intercourse, employment standing, age) – earnings of these workers working in digital-related jobs throughout all UK financial sectors, not simply inside the digital sector itself.
• Earnings for these working within the Digital Financial system – (i.e. median annual earnings for these working within the Digital Sector + these working in Digital Occupations exterior the Digital Sector)

11.5 Strengths and Limitations of the information

The ASHE information used for this evaluation are strong and have a lot of strengths:

• Measurement and protection – the ASHE dataset comprises data on roughly 180,000 jobs in all industries, occupations and areas, making it probably the most complete supply of earnings data within the UK and enabling an enormous vary of analyses
• High quality – various sources of earnings data such because the Labour Power Survey (LFS) depend on self-report or proxy information, that are recognized to be much less dependable than data from employers’ administrative methods
• Uniqueness – for a lot of makes use of, ASHE is the principle information supply and for some makes use of it’s the solely information supply

however there are some limitations of which customers must be conscious:

• Evaluation introduced right here have been calculated on a constant foundation in DCMS. Attributable to minimal variations within the methodology and evaluation used to calculate the median, outcomes on this report could not match the ONS revealed outcomes, particularly when additional breakdowns to some information e.g. by area or age. These variations are small however must be handled with warning
• Lack of non-public demographic data – traits resembling ethnicity, faith, schooling, incapacity and being pregnant should not recorded within the ASHE dataset
• The standard of estimates at low ranges of disaggregation could be poor
• The dataset doesn’t cowl those that are self-employed

The strengths and limitations of the Annual Survey of Hours and Earnings (ASHE) could be discovered within the High quality and Methodology Data report and the Information to sources of knowledge of earnings and revenue.

12. Additional data

For enquiries on this launch, please e mail [email protected].

For normal enquiries contact:
Division for Digital, Tradition, Media and Sport
100 Parliament Avenue
London
SW1A 2BQ
Phone: 020 7211 6000

DCMS statisticians could be adopted on Twitter by way of @DCMSInsight.

The Financial Estimates of DCMS Sectors are Official Statistics and have been produced to the requirements set out within the Code of Follow for Statistics.