Gross value added* (GVA) at current basic prices increased to £1,155 billion in 2006. The biggest contributors to this were London and the South East at £218 billion and £167 billion respectively. These two regions together accounted for one-third of UK economic activity in 2006 as measured by GVA on a workplace basis.
Over the ten year period from 1996 to 2006, GVA per head increased relative to the UK average in both London and the South East. Only the South West and Northern Ireland did not lose ground to London and the South East over this period.
• GVA per head was highest in London at £29,000, in 2006. It was 55 per cent above the UK average of £19,000. The South East was the only other region with GVA per head above the UK average (£20,000)
• GVA per head was lowest in Wales at £14,000, 23 per cent below the national average. This is a similar pattern to that seen in previous years
Total GVA, before allowing for inflation, has been increasing in all UK regions and countries. Over the five year period since 2001, GVA growth in the UK has been 30 per cent. In this time, London’s GVA has grown the most with an increase of 34 per cent while the West Midlands has seen the smallest GVA growth with just 25 per cent.
Northern Ireland continued to have the smallest share of total GVA, just over 2 per cent (£26bn) of the UK total. However, this figure represented a 5.6 per cent increase in GVA compared with the previous year and was the highest growth seen in any region. The slowest growth was in the North West where GVA grew by 4.5 per cent in this time.
*Note: Gross value added (GVA) is a measure of economic activity at basic prices, which includes taxes (less subsidies) on production but excludes taxes (less subsidies) on products.
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Regional Trends 40