Demand for Business Services Provider in South West grows.
The latest figures from the Office of National Statistics shows that demand continues to grow for business services providers in Gloucestershire and the South West of England as the economy continues to increase in size.
In 2015, the approximate gross value added at basic prices (aGVA) generated by local activity of the UK non-financial business economy was estimated to be £1,146.2 billion; out of the 12 UK regions, 11 experienced growth in aGVA in 2015 compared with 2014.
The North East was the only region showing a decrease in aGVA of 1.1% in 2015 compared with 2014; the main contribution to the fall was from the production sector falling 12.2% (£1.1 billion).
The highest contributions to local level UK aGVA in 2015 came from London, the West Midlands and the South East; the region with the largest aGVA growth between 2014 and 2015 was London, with a rise of 5.0% (£13.6 billion).
London contributed most to the non-financial service sector representing approximately one-third of its local level aGVA; London also had the largest value contribution to the sector’s growth in aGVA between 2014 an 2015 with an increase of 4.6% (£9.6 billion).
In the production sector Scotland continued to contribute most to local level aGVA in 2015 despite a fall in aGVA between 2014 and 2015 of 8.9% (£2.7 billion); this was due to the Extraction of crude oil industry where continuing falls in commodity prices were noted as a factor.
How has the aGVA econimic grown across the regions in 2015?
In 2015, approximate gross value added (aGVA) of the UK non-financial business economy at a local level was estimated to be £1,146.2 billion. This was an increase of 5.4% (£59.0 billion) in 2015 compared with an increase of 8.5% (£85.3 billion) in 2014 and a continuation of the growth seen between 2009 and 2014, with the increase in 2014 being the largest over the period.
The main components of aGVA are turnover and purchases. Figure 1 shows the levels of total aGVA, turnover and purchases from 2008 to 2015. The level of turnover increased gradually between 2009 and 2013 but has fallen in the most recent years. The level of purchases followed a similar path until 2013 but has since declined more sharply; this has resulted in the level of aGVA increasing in the latest period.
Growth in non-financial services for all regions in 2015
The non-financial service sector contributed £659.7 billion, over half (57.6%) of the approximate gross value (aGVA) total of £1,146.2 billion in 2015 to the UK non-financial business economy at the local level.
Figure 5 shows that following the period of the economic downturn in 2008, this is the sixth consecutive year of growth in aGVA for this sector at the local level. Between 2014 and 2015, turnover within this sector increased at a higher rate than purchases; 4.2% (£50.3 billion) compared with 1.8% (£10.2 billion). This resulted in an increase in aGVA of 6.7% (£41.3 billion).
Which means the growing burden of payrolls, pensions payments and administrative burden on businesses here in Cheltenham, Gloucestershire and the South West has never been greater.
So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on – email us on email@example.com or click the Contact Us buttonor please fill the form at the bottom of the contact us page