Description:
Temporary Measure - Approximate Gross Value Added (aGVA) of the Creative Industries Growth Sector
Source of Data:
The source of the approximate GVA data is the Annual Business Survey, which is run by the Office for National Statistics. Approximate GVA for the Creative Industries Growth Sector is published in the Scottish Government Growth Sector Statistics Database.
Note that this is a temporary measure for the ‘Growth in the Cultural Economy’ indicator. Work is underway to develop the indicator for the Cultural Economy in order to improve the measurement approach.
Definitions:
Approximate Gross Value Added (aGVA) is a measure of the income generated by businesses within their industries and sectors, less the cost of goods and services used to create the income. The main component of income is turnover, while purchases is the main component of the consumed goods and services (referred to as intermediate consumption). Stock levels which may rise or fall can also have an impact on aGVA, as can the values of subsidies received or duty paid. Businesses' labour costs (for example, wages and salaries) are paid from the value of GVA, leaving an operating surplus which is a good approximation for profit. The cost of capital investment, financial charges and dividends to shareholders are met from the operating surplus.
The ABS publishes aGVA at 'basic prices'. Gross Value Added (GVA) at basic prices is the output at basic prices minus intermediate consumption at purchaser prices. The basic price is the amount receivable by the producer from the purchaser for a unit of a product, minus any tax payable plus any subsidy receivable on that product. This ABS measure of aGVA is called 'approximate' because it does not fully allow for certain National Accounts concepts such as taxes, subsidies or income earned in kind.
The aGVA data are in current prices i.e. the values have not been adjusted to take account of inflation.
The Creative Industries sector here is defined as per the Growth Sector definition, which is built up from a range of Standard Industrial Classification 2017 codes, more information on the specific codes included is available at:
https://www.gov.scot/publications/growth-sector-statistics/
Criteria for Change:
The evaluation is based on: any difference within +/- 2% suggests that the position is more likely to be maintaining than showing any change. An increase of 2% or more suggests the position is improving; whereas a decrease of 2% or more suggests the position is worsening.
Future issues or reviews:
The aGVA estimate for 2020 will be revised when the 2021 estimates are published in the Summer of 2023.