Gross domestic product for the Lancashire sub-region
Background information
On the 19 December 2019, the Office for National Statistics (ONS) published the first release of annual estimates of gross domestic product (GDP) for subnational areas of the United Kingdom. This includes estimates for the Lancashire-14 NUTS-2 sub-region, the six Lancashire NUTS-3 areas and the 14 Lancashire local authority areas.
Gross domestic product (GDP) is equivalent to gross value added (GVA), plus Value Added Tax (VAT), plus other taxes on products, less subsidies on products. GDP measures the value of goods and services produced in the UK. It estimates the size of and growth in the economy.
The estimates are based on the balanced measure of regional gross value added (GVA(B)), which combines estimates produced using the income and production approaches to create a single best estimate of GVA for each industry in each region.
An industrial breakdown for regional GDP is not available. However, the gross value added (balanced) (GVA(B)) estimates can be used to understand industry movements.
The analysis below focusses on the new GDP data for the Lancashire-14 NUTS-2 sub-region and the six smaller NUTS-3 areas within the Lancashire-14 area. These are geographically based on European-defined statistical units – the so-called "Nomenclature of Units for Territorial Statistics" (NUTS). GDP data for the 14 local authority areas is also available and has also been analysed.
Summary
Provisional estimates of GDP totals for 2018
In 2018, the Lancashire-14 NUTS-2 area had an overall provisional gross domestic product (GDP) total of £39.124 billion, which was the second largest of the five NUTS-2 areas in the North West region, behind Greater Manchester (£78.918 billion).
GDP for the Lancashire-14 NUTS-2 area was ranked in 24th position out of 41 NUTS-2 areas in the UK (including Northern Ireland). The GDP total for the Lancashire-12 area was £32.433 billion.
The Mid Lancashire NUTS-3 area (£14.113 billion) had the fifth largest provisional GDP total in the North West region in 2018 (out of 20 North West NUTS-3 areas) and the 47th greatest in the UK (out of the 179 UK NUTS-3 areas). This placed the area's GDP total just outside of the top 25% of the NUTS-3 areas in the UK. The Manchester NUTS-3 area (£24.523 billion) had the greatest provisional GDP total in the North West (ranked 13th in the UK).
At the local authority level, with the exception South Ribble and Preston, the GDP totals for the remaining 12 local authority areas in the Lancashire-14 NUTS-2 sub-region fell in the lower half of the UK rankings (out of 382 local authority areas).
South Ribble (£5.090 billion) and Preston (£4.969 billion) had the greatest provisional workplace-based GDP totals in both the Lancashire-12 area and the Lancashire-14 NUTS-2 sub-region in 2018, ranked in 134th and 135th place, respectively, or just outside of the top third of the UK local authority rankings.
Within the North West, the GDP totals for South Ribble and Preston were the 12th and 13th greatest in the region (out of 39 local authority areas). Manchester (£24,523 billion) had the largest GDP total in the region and was ranked 8th in the UK.
The sum for South Ribble is partly attributable to the very high amount in the other taxes on products category (£1.175 billion) of the GDP calculation. This category includes customs duties on products such as alcohol and tobacco. The next highest amount within the Lancashire-14 NUTS-2 area for the other taxes on products category was in Lancaster (£0.219 billion).
Provisional yearly growth/decline in 'real' (adjusted for inflation) gross domestic product totals, 2017 to 2018
Between 2017 and 2018, the GDP total for the Lancashire-14 NUTS-2 area was estimated to have increased by 1.2% in 'real' terms (adjusted for inflation). This was lower than the 'real' growth for the UK (1.4%) and the North West (1.4%).
Within the region, 'Greater Manchester (1.6%) and Cheshire (1.6%) showed the highest 'real' growth at the NUTS-2 level, followed by Merseyside (1.5%), whilst the estimate for Cumbria showed a 'real' fall of 0.4% over the year.
At the NUTS-3 level, within the Lancashire-14 NUTS-2 sub-region, GDP for Blackpool (3.1%) was estimated to have increased by the greatest percentage in 'real' terms between 2017 and 2018, followed by Chorley and West Lancashire (2.6%), Lancaster and Wyre (1.4%), East Lancashire (1.4%) and Mid Lancashire (1.2%). However, the Blackburn with Darwen NUTS-3 area showed a provisional 'real' decline of 2.9% to its GDP total.
Eight of the local authorities within the Lancashire-14 NUTS-2 sub-region saw their 'real' GDP totals increase by more than the UK growth of 1.4%. These were Burnley (6.2%), Pendle (5.2%), Preston (3.9%), Chorley (3.8%), Wyre (3.3%), South Ribble (3.2%), Blackpool (3.1%) and West Lancashire (1.7%).
The GDP total for Lancaster was estimated to have increased by 0.3%, whilst Ribble Valley showed no growth over the year.
The four local authority areas of Fylde (-6.8%), Hyndburn (-6.8%), Rossendale (-3.0%) and Blackburn with Darwen (-2.9%) were estimated to have had 'real' reductions in their GDP totals between 2017 and 2018.
Provisional estimates of GDP per head for 2018
In terms of the GDP per head estimate, however, in 2018, the provisional figure for the Lancashire-14 NUTS-2 area of £26,112 was 18.3% lower than the UK less Extra-Regio figure of £31,976. The Lancashire estimate was ranked 27th in the UK (out of 41 NUTS-2 areas) and 4th in the region behind Cheshire (£40,207), Cumbria (£28,118) and Greater Manchester (£28,059). It was however above the GDP per head figure for Merseyside (£24,464).
Within the Lancashire-14 NUTS-2 area, only the Mid Lancashire NUTS-3 area (£35,987) had a provisional GDP per head figure above that of the UK less Extra-Regio figure of £31,976 in 2018, by 12.5%. The Mid Lancashire NUTS-3 area is comprised of Fylde, Preston, South Ribble and Ribble Valley local authorities. The area had the sixth highest GDP per head figure in the North West in 2018 and was ranked in 31st place out of the 179 NUTS-3 areas in the UK.
In contrast, the provisional GDP per head figure for the Lancaster and Wyre NUTS-3 area (£20,047) in 2018 was 37.3% lower than the UK figure. It was the fourth lowest figure in the region and 23rd lowest in the UK (or an eighth from the bottom of the NUTS-3 rankings).
The provisional GDP per head figures for the four Lancashire NUTS-3 areas of East Lancashire (£24,245), Blackburn with Darwen (£23,561), Blackpool (£22,845) and Chorley and West Lancashire (£22,347) were clustered fairly close together, falling between the bottom 40% and bottom 25% of the UK NUTS-3 rankings. The figures were 24.2%, 26.3%, 28.6% and 30.1% below the UK GDP per head figure (£31,976).
Provisional yearly growth/decline in 'real' (adjusted for inflation) GDP per head figures, 2017 to 2018
The provisional 'real' growth (adjusted for inflation) of the GDP per head figure for the Lancashire-14 NUTS-2 area between 2017 and 2018 at 0.7% was marginally lower than that recorded for the UK (less Extra-Regio) of 0.8%. 'Real' growth in GDP per head for the North West region was provisionally estimated at 0.9%, marginally above the national figure.
The Cheshire (1.1), Greater Manchester (1.1%) and Merseyside (1.1%) NUTS-2 areas had the greatest provisional 'real' growth rates in GDP per head in the region between 2017 and 2018, and were higher than the increase in Lancashire (0.7%). The Cumbria NUTS-2 area saw a provisional decrease of 0.5% to its GDP per head figure over the year.
At the NUTS-3 level within the Lancashire-14 NUTS-2 sub-region, 'real' GDP per head was estimated to have increased by the greatest percentage in Blackpool (3.5%) between 2017 and 2018, followed by Chorley and West Lancashire (2.1%). These were above the UK (less Extra-Regio) 'real' growth rate of 0.8%. For the Mid Lancashire (0.7%), East Lancashire (0.6%) and Lancaster and Wyre (0.4%) NUTS-3 areas, 'real' growth was below the UK rate. In contrast, the Blackburn with Darwen NUTS-3 area showed a 'real' decline to its GDP per head estimate of -3.0% over the year.
The eight local authorities within the Lancashire-14 NUTS-2 sub-region that saw their 'real' (adjusted for inflation) GDP per head figures increase provisionally between 2017 and 2018, all increased by more the 'real' UK growth of 0.8%. These eight local authorities were Burnley (5.2%), Pendle (4.3%), Preston (3.6%), Blackpool (3.5%), South Ribble (3.1%), Chorley (2.9%), Wyre (2.6%) and West Lancashire (1.6%).
The remaining six local authorities within the Lancashire-14 NUTS-2 sub-region all saw their 'real' GDP per head figures decline provisionally between 2017 and 2018. Fylde (-7.9%) saw the greatest fall over the year, followed by Hyndburn (-7.2%), Rossendale (-3.7%), Blackburn with Darwen (-3.0%), Ribble Valley (-0.9%) and Lancaster (-0.9%).
Analysis and data tables
Provisional estimates of GDP totals for 2018
In 2018, the Lancashire-14 NUTS-2 area had an overall provisional gross domestic product (GDP) total of £39.124 billion, which was the second largest in the North West region, behind Greater Manchester (£78.918 billion). The Lancashire-14 NUTS-2 total was ahead of the figures for Merseyside (£37.956 billion) and Cheshire (£37.427 billion). The total for Cumbria (£14.028 billion) was the smallest in the region.
GDP for the Lancashire-14 NUTS-2 area was ranked in 24th position out of 41 NUTS-2 areas in the UK (including Northern Ireland). The GDP total for the Lancashire-12 area was £32.433 billion.
The Mid Lancashire NUTS-3 area (£14.113 billion) had the fifth largest provisional GDP total in the North West region in 2018 (out of 20 North West NUTS-3 areas) and the 47th greatest in the UK (out of the 179 UK NUTS-3 areas). This placed the area's GDP total just outside of the top 25% of the NUTS-3 areas in the UK. The Manchester NUTS-3 area (£24.523 billion) had the greatest provisional GDP total in the North West (ranked 13th in the UK). The Greater Manchester South West NUTS-3 area (£18.192 billion) had the second largest provisional GDP total in the North West (ranked 29th in the UK).
The two Lancashire NUTS-3 areas of Blackpool and Blackburn with Darwen had the smallest GDP totals in the North West region, whilst the totals for the Lancaster and Wyre NUTS-3 area and the Chorley and West Lancashire NUTS-3 area were the fourth and fifth lowest in the region (just above Sefton). These NUTS-3 areas were ranked in the lowest fifth of the UK NUTS-3 areas (in terms of GDP totals) – and were similar to the revised 2017 UK positions. Blackpool NUTS-3 area (£3.182 billion) had the 17th smallest GDP total in the UK in 2018, whilst the Blackburn with Darwen NUTS-3 area (£3.507 billion) had the 22nd smallest. In 2017, the GDP total for Blackpool NUTS-3 area was the 16th lowest in the UK: the GDP total for the Blackburn with Darwen NUTS-3 area was 24th lowest in the UK in 2017.
The East Lancashire NUTS-3 area (£8.041 billion) had the eighth smallest GDP total in the North West and the 77th smallest in the UK in 2018 (again the same position as in 2017 (revised)). This placed the area in the lower half of the UK NUTS-3 rankings for GDP totals.
Table 1: Estimates of provisional 2018 workplace-based (1) gross domestic product (GDP) totals (£ billions) at current market prices and component elements for Lancashire NUTS-2 and NUTS-3 areas
| Area |
2018 Gross Value Added (Balanced) at current basic prices (£ bn) |
2018 Value Added Tax (VAT) on products (£ bn) |
2018 Other taxes on products (£ bn) |
Less 2018 subsidies on products (£ bn) |
2018 Gross Domestic Product (GDP) total (2) (£ bn) |
|---|---|---|---|---|---|
| Lancaster and Wyre NUTS-3 area | 4.398 | 0.557 | 0.229 |
0.132 |
5.122 |
| Mid Lancashire (NUTS-3) area (3) | 11.875 | 0.855 | 1.437 | 0.053 | 14.113 |
| East Lancashire (NUTS-3) area (4) | 7.221 | 0.732 | 0.113 | 0.016 | 8.041 |
| Chorley and West Lancashire NUTS-3 area | 4.623 | 0.503 | 0.045 | 0.014 | 5.157 |
| Lancashire-12 area | 28.116 | 2.636 | 1.894 | 0.215 | 32.433 |
| Blackburn with Darwen NUTS-3 area | 3.159 | 0.325 | 0.036 | 0.010 | 3.509 |
| Blackpool NUTS-3 area | 2.834 | 0.304 | 0.054 | 0.010 | 3.182 |
| Lancashire-14 NUTS-2 sub-region | 34.109 | 3.265 | 1.984 | 0.235 | 39.124 |
| Cumbria NUTS-2 sub-region | 11.950 | 1.087 | 1.068 | 0.078 | 14.028 |
| Greater Manchester NUTS-2 sub-region | 71.015 | 6.129 | 2.042 | 0.268 | 78.918 |
| Merseyside NUTS-2 sub-region | 33.605 | 3.381 | 1.076 | 0.105 | 37.956 |
| Cheshire NUTS-2 sub-region |
32.483 |
2.028 | 3.130 |
0.215 |
37.427 |
| North West NUTS-1 region | 183.162 | 15.890 | 9.301 | 0.901 | 207.452 |
| United Kingdom (less Extra-Regio) (5) | 1,892.681 | 149.240 | 94.449 | 12.019 | 2,124.351 |
| United Kingdom Extra-Regio (5) | 15.927 |
0.000 |
0.000 | 0.000 | 15.927 |
| United Kingdom total GDP (including Extra-Regio) (5) | 1,908.608 | 149.240 | 94.449 | 12.019 | 2,140.278 |
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Notes: (1) Estimates of workplace based GDP and component elements allocate values to the region or area in which the economic activity takes place; (2) Component elements may not sum to GDP totals owing to rounding; (3) The Mid Lancashire NUTS-3 area is comprised of Fylde, Preston, South Ribble and Ribble Valley local authorities. (4) The East Lancashire NUTS-3 area is made up of the four local authorities of Burnley, Hyndburn, Pendle and Rossendale; (5) The GDP for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf. |
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Source: Office for National Statistics - Regional economic activity by gross domestic product, UK: 1998 to 2018, published 19 December 2019. Data file: Regional gross domestic product all NUTS level regions, 1998 to 2018, published 19 December 2019. |
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Local authority analysis of provisional GDP totals in 2018
At the local authority level, with the exception South Ribble and Preston, the GDP totals for the remaining 12 local authority areas in the Lancashire-14 NUTS-2 sub-region fell in the lower half of the UK rankings (out of 382 local authority areas).
South Ribble (£5.090 billion) and Preston (£4.969 billion) had the greatest provisional workplace-based GDP totals in both the Lancashire-12 area and the Lancashire-14 NUTS-2 sub-region in 2018, ranked in 134th and 135th place, respectively, or just outside of the top third of the UK local authority rankings.
Within the North West, the GDP totals for South Ribble and Preston were the 12th and 13th greatest in the region (out of 39 local authority areas). Manchester (£24,523 billion), Cheshire East (£15.853 billion), Liverpool (£14,850 billion) and Cheshire West and Chester (£13.428 billion) had the largest GDP totals in the region and were ranked in the 8th, 14th, 19th and 21st highest positions in the UK (or in the top six percent of the UK rankings).
The sum for South Ribble is partly attributable to the very high amount in the other taxes on products category (£1.175 billion) of the GDP calculation. This category includes customs duties on products such alcohol and tobacco. The next highest amount within the Lancashire-14 NUTS-2 area for the other taxes on products category was in Lancaster (£0.219 billion).
Blackburn with Darwen (£3.509 billion) had the third largest provisional GDP total in the Lancashire-14 NUTS-2 area in 2018, whilst the figure for Blackpool (£3.182 billion) was the fourth greatest in the sub-region.
Lancaster (£3.172 billion), West Lancashire (£2.814 billion), Burnley (£2.546 billion) and Pendle (£2.517 billion) had the fifth to eighth largest provisional workplace-based GDP totals in the Lancashire-14 NUTS-2 sub-region in 2018.
Rossendale (£1.272 billion) had the smallest total in both the Lancashire-12 area and the Lancashire-14 NUTS-2 sub-region. The GDP total for Rossendale was the smallest in the North West region and the 17th lowest in the UK (out of 382 local authority areas).
The Isles of Scilly (£0.124 billion), off Cornwall, Na H-Eileanan Siar (£0.645 billion) in Scotland, the Orkney Islands (£0.708 billion) and the Shetland Islands (£0.840 billion), also in Scotland, Rutland (£0.857 billion) in the East Midlands and West Devon (£0.928 billion), in the South West of England, had the smallest provisional GDP totals in the UK in 2018.
Note: Please be aware that owing to the small areas analysed at the local authority level, some of the figures can be rather volatile. Where erratic movements are evident in the time series, caution should be taken when interpreting the data.
Table 2: Estimates of provisional 2018 workplace-based (1) gross domestic product (GDP) totals (£ billions) at current market prices and component elements for Lancashire local authority areas and the Lancashire NUTS-2 area
| Area |
2018 Gross Value Added (Balanced) at current basic prices (£ bn) |
2018 Value Added Tax (VAT) on products (£ bn) |
2018 Other taxes on products (£ bn) |
Less 2018 subsidies on products (£ bn) |
2018 Gross Domestic Product (GDP) total (2) (£ bn) |
|---|---|---|---|---|---|
| Burnley | 2.332 | 0.193 | 0.024 | 0.003 | 2.546 |
| Chorley | 2.076 | 0.255 | 0.018 | 0.007 | 2.343 |
| Fylde | 2.129 | 0.174 | 0.031 | 0.009 | 2.325 |
| Hyndburn | 1.510 | 0.176 | 0.029 | 0.010 | 1.706 |
| Lancaster | 2.755 | 0.314 | 0.219 | 0.116 | 3.172 |
| Pendle | 2.272 | 0.199 | 0.047 | 0.001 | 2.517 |
| Preston | 4.470 | 0.309 | 0.217 | 0.027 | 4.969 |
| Ribble Valley | 1.588 | 0.131 | 0.014 | 0.004 | 1.729 |
| Rossendale | 1.106 | 0.154 | 0.013 | 0.002 | 1.272 |
| South Ribble | 3.688 | 0.241 | 1.175 | 0.013 | 5.090 |
| West Lancashire | 2.547 | 0.248 | 0.027 | 0.008 | 2.814 |
| Wyre | 1.643 | 0.242 | 0.080 | 0.015 | 1.950 |
| Lancashire-12 area | 28.116 | 2.636 | 1.894 | 0.215 | 32.433 |
| Blackburn with Darwen | 3.159 | 0.325 | 0.036 | 0.010 | 3.509 |
| Blackpool | 2.834 | 0.304 | 0.054 | 0.010 | 3.182 |
| Lancashire-14 NUTS-2 sub-region | 34.109 | 3.265 | 1.984 | 0.235 | 39.124 |
| North West NUTS-1 region | 183.162 | 15.890 | 9.301 | 0.901 | 207.452 |
| United Kingdom (less Extra-Regio) (3) | 1,892.681 | 149.240 | 94.449 | 12.019 |
2,124.351 |
| United Kingdom Extra-Regio (3) | 15.927 | 0.000 | 0.000 | 0.000 | 15.927 |
| United Kingdom total GDP (including Extra-Regio) (3) | 1,908.608 | 149.240 | 94.449 | 12.019 |
2,140.278 |
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Notes: (1) Estimates of workplace based GDP and component elements allocate values to the region or area in which the economic activity takes place; (2) Component elements may not sum to GDP totals owing to rounding; (3) The GDP for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf. |
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Source: Office for National Statistics - Regional economic activity by gross domestic product, UK: 1998 to 2018, published 19 December 2019. Data files: Regional gross domestic product local authorities, 1998 to 2018, and Regional gross domestic product all NUTS level regions, 1998 to 2018, both published 19 December 2019. |
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Provisional yearly growth/decline in 'real' (adjusted for inflation) gross domestic product totals, 2017 to 2018
The new GDP dataset contains estimates of 'real' (chained volume) growth/decline for the GDP totals (ie adjusted for inflation) at the NUTS-1 regional level, the NUTS-2 sub-regional level, the local NUTS-3 level and at the local authority level.
Between 2017 and 2018, the GDP total for the UK (including the Extra-Regio component), showed provisional 'real' growth (adjusted for inflation) of 1.4%. In the North West, provisional 'real' growth was also estimated at 1.4%. Greater Manchester (1.6%) and Cheshire (1.6%) showed the highest provisional 'real' growth in the region at the NUTS-2 level, followed by Merseyside (1.5%), whilst the estimate for Cumbria showed a 'real' fall of 0.4% over the year.
The GDP total for the Lancashire-14 NUTS-2 area was estimated to have increased provisionally by 1.2% in 'real' terms between 2017 and 2018.
At the NUTS-3 level, within the Lancashire-14 NUTS-2 sub-region, GDP for Blackpool (3.1%) was estimated to have increased provisionally by the greatest percentage in 'real' terms (adjusted for inflation) between 2017 and 2018, followed by Chorley and West Lancashire (2.6%), Lancaster and Wyre (1.4%), East Lancashire (1.4%) and Mid Lancashire (1.2%). However, the Blackburn with Darwen NUTS-3 area showed a provisional 'real' decline to its GDP total of -2.9% from 2017 to 2018.
Table 3: Workplace-based (1) gross domestic product (GDP) totals (£ billions) at current market prices 2017 (revised) and 2018 (provisional), plus provisional nominal and 'real' change figures for the UK and selected NUTS areas.
| Area |
2017 GDP (3) (£ bn) |
2018 GDP (3) (£ bn) |
Nominal change in GDP (4), 2017 (2) to 2018 (3) (£ bn) |
Nominal change in GDP (4), 2017 (2) to 2018 (3) (%) |
'Real' change in GDP (5), 2017 to 2018 (%) |
|---|---|---|---|---|---|
| Lancaster and Wyre NUTS-3 area | 4.944 | 5.122 | 0.178 | 3.6 | 1.4 |
| Mid Lancashire (NUTS-3) area (6) | 13.703 | 14.113 | 0.410 | 3.0 | 1.2 |
| East Lancashire (NUTS-3) area (7) | 7.780 | 8.041 | 0.261 | 3.4 | 1.4 |
| Chorley and West Lancashire NUTS-3 area | 4.963 | 5.157 | 0.194 | 3.9 | 2.6 |
| Lancashire-12 area | 31.390 | 32.433 | 1.043 | 3.3 | 1.5 (8) |
| Blackburn with Darwen NUTS-3 area | 3.554 | 3.509 | -0.045 | -1.3 | -2.9 |
| Blackpool NUTS-3 area | 3.044 | 3.182 | 0.138 | 4.5 | 3.1 |
| Lancashire-14 NUTS-2 sub-region | 37.987 | 39.124 | 1.137 | 3.0 | 1.2 |
| Cumbria NUTS-2 sub-region | 13.885 | 14.028 | 0.143 | 1.0 | -0.4 |
| Greater Manchester NUTS-2 sub-region | 76.285 | 78.918 | 2.633 | 3.5 | 1.6 |
| Merseyside NUTS-2 sub-region | 36.747 | 37.956 | 1.209 | 3.3 | 1.5 |
| Cheshire NUTS-2 sub-region | 36.092 | 37.427 | 1.335 | 3.7 | 1.6 |
| North West NUTS-1 region | 200.995 | 207.452 | 6.457 | 3.2 | 1.4 |
| United Kingdom (less Extra-Regio) (9) | 2,061.387 | 2,124.351 | 62.964 | 3.1 | 1.4 |
| United Kingdom Extra-Regio (9) | 10.071 | 15.927 | 5.856 | 58.1 | 7.1 |
| United Kingdom total GDP (including Extra-Regio) (9) | 2,071.458 | 2,140.278 | 68.820 | 3.3 | 1.4 |
| Notes: (1) Estimates of workplace based GDP allocate values to the region or area in which the economic activity takes place; (2) Revised nominal figures (current market prices); (3) Provisional nominal figures (current market prices); (4) Nominal change in figures (current market prices), unadjusted for inflation; (5) 'Real' change in GDP figures, adjusted for inflation using 2016 money values and chained volume measures for the UK, NUTS-1, NUTS-2 and NUTS-3 areas. (6) The Mid Lancashire NUTS-3 area is comprised of Fylde, Preston, South Ribble and Ribble Valley local authorities. (7) The East Lancashire NUTS-3 area is made up of the four local authorities of Burnley, Hyndburn, Pendle and Rossendale; (8) Estimated by Business Intelligence at Lancashire County Council from GDP chained volume measures (CVM) using 2016 money value; (9) The GDP for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf. |
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Source: Office for National Statistics - Regional economic activity by gross domestic product, UK: 1998 to 2018, published 19 December 2019. Data file: Regional gross domestic product all NUTS level regions, 1998 to 2018, published 19 December 2019. |
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Eight of the local authorities within the Lancashire-14 NUTS-2 sub-region saw their 'real' (adjusted for inflation) GDP totals increase provisionally by more the 'real' UK growth of 1.4%. These eight were Burnley (6.2%), Pendle (5.2%), Preston (3.9%), Chorley (3.8%), Wyre (3.3%), South Ribble (3.2%), Blackpool (3.1%) and West Lancashire (1.7%).
The GDP total for Lancaster was provisionally estimated to have increased by 0.3%, whilst Ribble Valley showed no growth over the year.
The four Lancashire-14 NUTS-2 local authority areas of Fylde (-6.8%), Hyndburn (-6.8%), Rossendale (-3.0%) and Blackburn with Darwen (-2.9%) saw provisional 'real' reductions (adjusted for inflation) in their GDP totals between 2017 and 2018.
Table 4: Workplace-based (1) gross domestic product (GDP) totals (£ billions), 2017 (revised) and 2018 (provisional), plus provisional nominal and 'real' change for local authority areas in the Lancashire-14 NUTS-2 area.
| Area |
2017 GDP (2) (£ bn) |
2018 GDP (3) (£ bn) |
Nominal change in GDP (4), 2017 (2) to 2018 (3) (£ bn) |
Nominal change in GDP (4), 2017 (2) to 2018 (3) (%) |
'Real' change in GDP (5), 2017 to 2018 (%) |
|---|---|---|---|---|---|
| Burnley | 2.357 | 2.546 | 0.189 | 8.0 | 6.2 |
| Chorley | 2.225 | 2.343 | 0.118 | 5.3 | 3.8 |
| Fylde | 2.445 | 2.325 | -0.120 | -4.9 | -6.8 |
| Hyndburn | 1.793 | 1.706 | -0.087 | -4.9 | -6.7 |
| Lancaster | 3.092 | 3.172 | 0.080 | 2.6 | 0.3 |
| Pendle | 2.344 | 2.517 | 0.173 | 7.4 | 5.2 |
| Preston | 4.696 | 4.969 | 0.273 | 5.8 | 3.9 |
| Ribble Valley | 1.698 | 1.729 | 0.031 | 1.8 | 0.0 |
| Rossendale | 1.285 | 1.272 | -0.013 | -1.0 | -3.0 |
| South Ribble | 4.863 | 5.090 | 0.227 | 4.7 | 3.2 |
| West Lancashire | 2.738 | 2.814 | 0.076 | 2.8 | 1.7 |
| Wyre | 1.852 | 1.950 | 0.098 | 5.3 | 3.3 |
| Lancashire-12 area | 31.390 | 32.433 | 1.043 | 3.3 | 1.5 (6) |
| Blackburn with Darwen | 3.554 | 3.509 | -0.045 | -1.3 | -2.9 |
| Blackpool | 3.044 | 3.182 | 0.138 | 4.5 | 3.1 |
| Lancashire-14 NUTS-2 sub-region | 37.987 | 39.124 | 1.137 | 3.0 | 1.2 |
| United Kingdom (less Extra-Regio) (7) | 2,061.387 | 2,124.351 | 62.964 | 3.1 | 1.4 |
| United Kingdom Extra-Regio (7) | 10.071 | 15.927 | 5.856 | 58.1 | 7.1 |
| United Kingdom total GDP (including Extra-Regio) (7) | 2,071.458 | 2,140.278 | 68.820 | 3.3 | 1.4 |
| Notes: (1) Estimates of workplace based GDP allocate values to the region or area in which the economic activity takes place; (2) Revised nominal figures (current market prices); (3) Provisional nominal figures (current market prices); (4) Nominal change in figures (current market prices), unadjusted for inflation; (5) 'Real' change in GDP figures, adjusted for inflation using 2016 money values and chained volume measures. (6) Estimated by Business Intelligence at Lancashire County Council from GDP chained volume measures (CVM) using 2016 money value; (7) The GDP for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf. | |||||
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Source: Office for National Statistics - Regional economic activity by gross domestic product, UK: 1998 to 2018, published 19 December 2019. Data files: Regional gross domestic product local authorities, 1998 to 2018, and Regional gross domestic product all NUTS level regions, 1998 to 2018, both published 19 December 2019. |
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Provisional estimates of GDP per head for 2018
In 2018, the provisional GDP per head figure of £26,112 for the Lancashire-14 NUTS-2 area was 18.3% lower than the UK less Extra-Regio figure of £31,976. The Lancashire figure was ranked 27th in the UK (out of 41 NUTS-2 areas) and 4th in the region behind Cheshire (£40,207), Cumbria (£28,118) and Greater Manchester (£28,059). It was however above the GDP per head figure for Merseyside (£24,464).
Note: Extra-Regio GVA comprises compensation of employees and gross operating surplus that cannot be assigned to regions, such as oil and gas production on the continental shelf.
Locally, only the Mid Lancashire NUTS-3 area (£35,987) had a provisional GDP per head figure above that of the UK less Extra-Regio figure of £31,976 in 2018, by 12.5%. The Mid Lancashire NUTS-3 area is comprised of Fylde, Preston, South Ribble and Ribble Valley local authorities. The area had the sixth highest GDP per head figure in the North West in 2018 and was ranked in 31st place out of the 179 NUTS-3 areas in the UK.
The on-line ONS statistical bulletin - Regional economic activity by gross domestic product, UK: 1998 to 2018 contains an interactive map at section 4 that allows GDP per head figures for the 179 NUTS-3 areas in the UK to be visualised in a time series graph from 1998 to 2018. This shows that the Mid Lancashire NUTS-3 area was the only Lancashire NUTS-3 area to outperform the UK average.
In contrast, the provisional GDP per head figure for the Lancaster and Wyre NUTS-3 area (£20,047) in 2018 was 37.3% lower than the UK figure. It was the fourth lowest figure in the region and 23rd lowest in the UK (or an eighth from the bottom of the NUTS-3 rankings).
Ards and North Down (£15,034), in Northern Ireland; East Ayrshire and North Ayrshire mainland (£16,795), in Scotland; and Torbay (£17,409), in the South West of England, had the lowest provisional GDP per head figures for the NUTS-3 areas in the UK.
Within the region, the three NUTS-3 areas of Sefton (£17,850), Greater Manchester North East (£18,285) and Wirral (£18,507) had the lowest GDP per head figures. These were 5th, 8th and 11th lowest amounts in the UK
The provisional GDP per head figures for the four Lancashire NUTS-3 areas of East Lancashire (£24,245), Blackburn with Darwen (£23,561), Blackpool (£22,845) and Chorley and West Lancashire (£22,347) were clustered fairly close together, falling between the bottom 40% and bottom 25% of the UK NUTS-3 rankings. The figures were 24.2%, 26.3%, 28.6% and 30.1% below the UK GDP per head figure (£31,976), and were the seventh, eighth, ninth and tenth lowest amounts in the region, respectively (out of 20 NUTS-3 areas in the North West).
Table 5: Workplace based GDP per head (1), at current market prices, 2017 (revised) and 2018 (provisional), and provisional nominal and real change from 2017 to 2018.
| Area |
2017 GDP per head (2) (£) |
2018 GDP per head (3) (£) |
2018 GDP per head indices (3) (UK less Extra-Regio(4) = 100) |
Nominal change in GDP per head (5), 2017 (2) to 2018 (3) (£) |
Nominal change in GDP per head (5), 2017 (2) to 2018 (3) (%) |
'Real' change in GDP per head (6), 2017(2) to 2018(3) (%) |
|---|---|---|---|---|---|---|
| Lancaster and Wyre NUTS-3 area | 19,548 | 20,047 | 62.7 | 499 | 2.6 | 0.4 |
| Mid Lancashire NUTS-3 area | 35,125 | 35,987 | 112.5 | 862 | 2.5 | 0.7 |
| East Lancashire NUTS-3 area | 23,633 | 24,245 | 75.8 | 612 | 2.6 | 0.6 |
| Chorley and West Lancashire NUTS-3 area | 21,612 | 22,347 | 69.9 | 735 | 3.4 | 2.1 |
| Blackburn with Darwen NUTS-3 area | 23,887 | 23,561 | 73.7 | -326 | -1.4 | -3.0 |
| Blackpool NUTS-3 area | 21,762 | 22,845 | 71.4 | 1,083 | 5.0 | 3.5 |
| Lancashire-14 NUTS-2 sub-region | 25,486 | 26,112 | 81.7 | 626 | 2.5 | 0.7 |
| Cumbria NUTS-2 sub-region | 27,860 | 28,118 | 87.9 | 258 | 0.9 | -0.5 |
| Greater Manchester NUTS-2 sub-region | 27,256 | 28,059 | 87.8 | 803 | 2.9 | 1.1 |
| Merseyside NUTS-2 sub-region | 23,793 | 24,464 | 76.5 | 671 | 2.8 | 1.1 |
| Cheshire NUTS-2 sub-region | 38,953 | 40,207 | 125.7 | 1,254 | 3.2 | 1.1 |
| North West NUTS-1 region | 27,691 | 28,449 | 89.0 | 758 | 2.7 | 0.9 |
| United Kingdom (less Extra-Regio) (4) | 31,214 | 31,976 | 100.0 | 762 | 2.4 | 0.8 |
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Notes: (1) Estimates of workplace based GDP allocate values to the region or area in which the economic activity takes place; (2) Revised nominal figures (current market prices); (3) Provisional nominal figures (current market prices); (4) The GDP for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf; (5) Nominal change in figures (current market prices), unadjusted for inflation; (6) 'Real' change in figures, adjusted for inflation using 2016 money values and chained volume measures. |
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Source: Office for National Statistics - Regional economic activity by gross domestic product, UK: 1998 to 2018, published 19 December 2019. Data file: Regional gross domestic product all NUTS level regions, 1998 to 2018, published 19 December 2019. |
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Local authority analysis of the provisional 2018 GDP per head figures
In 2018, at the local authority level, South Ribble (£46,055) had the highest provisional GDP per head figure in the Lancashire-14 NUTS-2 area and the North West region, ahead of Manchester (£44,781), Cheshire East (£41,633) and Trafford (£41,312). The South Ribble GDP per head figure was the 35th highest in the UK, in the top 10% of the 382 local authority rankings, and was 44.0% above the UK GDP per head amount (£31,976). The sum for South Ribble is partly attributable to the very high amount in the other taxes on products category (£1.175 billion) of the GDP calculation. This category includes customs duties on products such as alcohol and tobacco. The next highest amount within the Lancashire-14 NUTS-2 area for the other taxes on products category was in Lancaster (£0.219 billion).
The City of London had the greatest provisional GDP per head figure in the UK in 2018 with an astonishing GDP sum of £8,235,208 per head. This highlights the problem of using the gross domestic product total for an area divided by the resident population in that area as it does not take into account commuting patterns. The 2018 mid-year population for the City of London was estimated to be just 8,700 persons, whilst the number of jobs in the area was estimated to be 522,000 (source: City of London jobs factsheet). GDP for the City of London was provisionally estimated at £71.7 billion in 2018, a large percentage of which will have been generated from financial, professional and business services.
Westminster (£282,093) had the second highest provisional GDP per head figure in the UK in 2018, followed by Camden (£135,022), Tower Hamlets (£113,559) and Islington (£82,873).
Within the Lancashire-14 NUTS-2 sub-region, Preston (£35,035) was only the second local authority in the area to have a GDP per head figure above the UK amount (£31,976) by 9.6%. It was ranked in 81st position in the UK, or just outside of the top fifth of the rankings.
The GDP per head figures for Fylde (£29,151), Ribble Valley (£28,783), Burnley (£28,762) and Pendle (£27,533) were ranked in 141st position to 164th position (or the third sixth of the rankings).
The remaining eight local authorities in the Lancashire-14 NUTS-2 area had provisional GDP per head figures that fell in the lower half of the UK rankings.
Wyre (£17,114) had the lowest provisional GDP per head figure in the Lancashire-14 NUTS-2 area in 2018, ranked 27th lowest in the UK. The figure for Rossendale (£17,946) was the 37th lowest in the UK. Both of these figures fell in the lowest 10% of the UK local authority rankings.
The GDP per head figures for Chorley (£20,053), ranked in the 74th lowest position, and Hyndburn (£21,105), ranked in the 90th lowest place, fell in the lowest quarter of the UK rankings.
The lowest provisional GDP per head figures in the UK in 2018 were estimated to be for East Renfrewshire (£13,681), in Scotland; Castle Point (£14,010), in the East of England; Gosport (£14,366), in the South East of England: South Tyneside (£14,602), in the North East; and Lewisham (£14,970), in London.
Table 6: Workplace-based (1) GDP per head (£), 2017 (revised) and 2018 (provisional), plus provisional nominal and 'real' change from 2017 to 2018
| Area |
2017 GDP per head (2) (£) |
2018 GDP per head (3) (£) |
2018 GDP per head Indices (3) (UK less Extra-Regio(4) = 100) |
Nominal change in GDP per head (5), 2017 (2) to 2018 (3) (£) |
Nominal change in GDP per head (5), 2017 (2) to 2018 (3) (%) |
'Real' change in GDP per head (6), 2017 to 2018 (%) |
|---|---|---|---|---|---|---|
| Burnley | 26,878 | 28,762 | 89.9 | 1,884 | 7.0 | 5.2 |
| Chorley | 19,219 | 20,053 | 62.7 | 834 | 4.3 | 2.9 |
| Fylde | 30,999 | 29,151 | 91.2 | -1,848 | -6.0 | -7.9 |
| Hyndburn | 22,302 | 21,105 | 66.0 | -1,197 | -5.4 | -7.2 |
| Lancaster | 21,697 | 21,989 | 68.8 | 292 | 1.3 | -0.9 |
| Pendle | 25,842 | 27,533 | 86.1 | 1,691 | 6.5 | 4.3 |
| Preston | 33,225 | 35,035 | 109.6 | 1,810 | 5.4 | 3.6 |
| Ribble Valley | 28,544 | 28,783 | 90.0 | 239 |
0.8 |
-0.9 |
| Rossendale | 18,265 | 17,946 | 56.1 | -319 | -1.7 | -3.7 |
| South Ribble | 44,053 | 46,055 | 144.0 | 2,002 | 4.5 | 3.1 |
| West Lancashire | 24,046 | 24,697 | 77.2 | 651 | 2.7 | 1.6 |
| Wyre | 16,775 | 17,530 | 54.8 | 755 | 4.5 | 2.6 |
| Blackburn with Darwen | 23,887 | 23,561 | 73.7 | -326 | -1.4 | -3.0 |
| Blackpool | 21,762 | 22,845 | 71.4 | 1,083 | 5.0 | 3.5 |
| Lancashire-14 NUTS-2 sub-region | 25,486 | 26,112 | 81.7 | 626 | 2.5 | 0.7 |
| North West NUTS-1 region | 27,691 | 28,449 | 89.0 | 758 | 2.7 | 0.9 |
| United Kingdom (less Extra-Regio) (4) | 31,214 | 31,976 | 100.0 | 762 | 2.4 | 0.8 |
| Notes: (1) Estimates of workplace based GDP allocate values to the region or area in which the economic activity takes place; (2) Revised nominal figures (current market prices); (3) Provisional nominal figures (current market prices); (4) The GDP for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions, such as oil and gas production on the continental shelf; (5) Nominal change in figures (current market prices), unadjusted for inflation; (6) 'Real' change in figures, adjusted for inflation using 2016 money values and chained volume measures. | ||||||
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Source: Office for National Statistics - Regional economic activity by gross domestic product, UK: 1998 to 2018, published 19 December 2019. Data files: Regional gross domestic product local authorities, 1998 to 2018, and Regional gross domestic product all NUTS level regions, 1998 to 2018, both published 19 December 2019. |
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Provisional yearly growth/decline in 'real' (adjusted for inflation) GDP per head figures, 2017 to 2018
The provisional 'real' growth (adjusted for inflation) of the GDP per head figure for the Lancashire-14 NUTS-2 area between 2017 and 2018 at 0.7% was marginally lower than that recorded for the UK (less Extra-Regio) of 0.8%. 'Real' growth in GDP per head for the North West region was provisionally estimated at 0.9%, marginally above the national figure.
The Cheshire (1.1), Greater Manchester (1.1%) and Merseyside (1.1%) NUTS-2 areas had the greatest provisional 'real' growth rates in GDP per head in the region between 2017 and 2018, and were higher than the increase in Lancashire (0.7%). The Cumbria NUTS-2 area saw a provisional decrease of 0.5% to its GDP per head figure over the year.
At the NUTS-3 level within the Lancashire-14 NUTS-2 sub-region, 'real' GDP per head was estimated to have increased by the greatest percentage in Blackpool (3.5%) between 2017 and 2018, followed by Chorley and West Lancashire (2.1%). These were above the UK (less Extra-Regio) 'real' growth rate of 0.8%. For the Mid Lancashire (0.7%), East Lancashire (0.6%) and Lancaster and Wyre (0.4%) NUTS-3 areas, 'real' growth was below the UK rate. In contrast, the Blackburn with Darwen NUTS-3 area showed a 'real' decline to its GDP per head estimate of -3.0% over the year.
The eight local authorities within the Lancashire-14 NUTS-2 sub-region that saw their 'real' (adjusted for inflation) GDP per head figures increase provisionally between 2017 and 2018, all increased by more the 'real' UK growth of 0.8%. These eight local authorities were Burnley (5.2%), Pendle (4.3%), Preston (3.6%), Blackpool (3.5%), South Ribble (3.1%), Chorley (2.9%), Wyre (2.6%) and West Lancashire (1.6%).
The remaining six local authorities within the Lancashire-14 NUTS-2 sub-region all saw their 'real' GDP per head figures decline provisionally between 2017 and 2018. Fylde (-7.9%) saw the greatest fall over the year, followed by Hyndburn (-7.2%), Rossendale (-3.7%), Blackburn with Darwen (-3.0%), Ribble Valley (-0.9%) and Lancaster (-0.9%).
Page updated 28 February 2020
Summary added 10 March 2020