IBISWorld presents a collection of fast facts for the different sectors of the UK economy.

According to the Office for National Statistics (ONS), agriculture output recorded a 1.9% contraction in February 2021. Output also remained 12.8% below levels recorded in February 2020.
According to forecasts from the Department for Environment, Food & Rural Affairs, disruption to markets due to the coronavirus pandemic contributed to a 21% decline in total income from farming in the United Kingdom during 2020.
In November 2020, the government set out plans for a Sustainable Farming Incentive. The scheme, which will launch in 2022, aims to reward environmental land management through payments to farmers to carry out environmentally sustainable actions.
Average weekly earnings for farm workers remained steady in 2020 according to ONS data, recording an annual increase of just 0.2% between in 2020.
According to the National Pig Association, delays faced by pig farmers have left 100,000 animals unable to enter the food chain. These delays have been attributed to excessive bureaucracy and new rules governing exports since the end of the transition period between the United Kingdom and the European Union, as well as coronavirus-related supply chain disruption.

According to manufacturing association Make UK, the UK manufacturing sector is expected to grow by 3.9% in 2021. This represents an upgrade on previous forecasts, which estimated growth of 2.7%.
According to the ONS, manufacturing output increased by 1.3% in February 2021. Nevertheless, manufacturing output remained 4.2% below pre-pandemic levels recorded in February 2020 and 0.3% below the initial recovery peak recorded in October 2020.
The IHS Markit/CIPS UK Manufacturing PMI increased to 58.9 in March 2021, from 55.1 in the previous month. This represents the strongest PMI recorded since February 2011.
According to the Society of Motor Manufacturers and Traders, UK car production was 14% lower in February 2021 than the same month in 2020. Year-to-date car production for the first two months of 2021 was down 20.6% on the same period in 2020.
According to the CBI’s Quarterly Industrial Trends Survey, manufacturing optimism improved at its quickest pace since April 1973 in the three months to April 2021.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 22 March and 4 April 2021, 32.8% of actively trading participating manufacturing firms stated that their revenue remained below what they would usually expect for the time of year. Similarly, 12.1% of firms surveyed in the sector between 6 April and 18 April 2021 stated that they had either temporarily or permanently ceased trading.

According to National Grid Electricity System Operator, Great Britain’s electricity system was the greenest it has ever been at 1.00pm on Easter Bank Holiday Monday. Favourable weather conditions and low demand for power meant that low-carbon energy sources were able to make up almost 80% of Britain’s power, while levels of carbon pollution for each unit of electricity consumed dropped to 39 grams, the lowest ever recorded for the grid.
On 20 April 2021, the UK government set in law a target to reduce emissions by 78% by 2045 compared to 1990 levels. This would bring the UK more than three-quarters of the way to its long-term target of achieving net zero emissions by 2050.
According to provisional data reported by the Department for Business, Energy and Industrial Strategy, renewables overtook fossil fuels in the UK’s energy mix for the first time in 2020, accounting for 42.9% of total electricity generated compared with 38.5% generated from fossil fuels. This was supported by a coronavirus-induced 4.7% decline in total electricity consumption and a significant increase in renewable generation capacity, particularly for offshore wind.
As part of a plan for a green recovery from the coronavirus pandemic, the UK government has implemented a Ten Point Plan for a Green Industrial Revolution. This includes £12 billion of government investment to help the UK reach updated climate change targets, including a hydrogen production target of 5GW by 2030, and expanding offshore wind generation capacity to 40GW by 2030. The government has also established a Floating Offshore Wind Demonstration Programme, a competitive funding scheme which aims to support the development of this emerging technology in line with targets to increase floating offshore wind capacity to 1GW by 2030.

According to the ONS, construction output grew by 1.6% in February 2021, driven by growth in new work and repair and maintenance activity. Nevertheless, output in the construction sector remained 4.3% below levels recorded in February 2020.
The IHS Markit/CIPS UK Construction PMI increased to 61.7 in March 2021, from 53.3 in the previous month. This represents the strongest rate of growth in construction output since September 2014.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 22 March and 4 April 2021, 37.5% of actively trading participating construction firms stated that their revenue remained below what they would usually expect for the time of year. Additionally, 14.7% of firms surveyed in the sector between 6 April and 18 April 2021 stated that they had either temporarily or permanently ceased trading.
Provisional estimates published by HMRC show that 229,200 construction workers remained on furlough at the end of February 2021. This represents a decline on the number of furloughed workers in January 2021 and is significantly below the peak of 723,600 employments furloughed on 14 April 2020. However, it remains above lows of approximately 130,000 recorded at the end of October 2020.
Construction output is expected to rise by 12.9% in 2021 and 5.2% in 2022, according to the Construction Products Association Spring forecast. Infrastructure activity is expected to record the strongest growth, increasing by 29.3% to reach its highest level on record.

Data from the ONS states that the largest contributor to growth in services output in February 2021 was wholesale and retail trade, as sales have picked up.
In the ONS Business Insights and Impacts on the UK Economy survey, 36.6% of businesses in the wholesale and retail sector reported a decrease in turnover between 22 March and 4 April 2021 compared with normal expectations for this time of year.
According to the ONS, in the period 22 March to 4 April 2021, the wholesale industry has stated that the biggest challenge businesses faced when exporting was additional paperwork, at 60%.
Following a record decline in the trade of goods between the United Kingdom and European Union in January 2021, including a 42% drop in exports to and a 29.7% drop in imports from the European Union, trade has partially rebounded, according to data from the ONS. Exports and imports have both risen, by 46.6% and 7.3% month-on-month respectively in February 2021.
A survey for London First/EY conducted in February 2021 has found that 75% of businesses had some disruption with trade with the European Union, with 49% expecting that to continue in the long term. Nearly a third have stated they had stopped trading with the bloc. Since the end of the transition period, many businesses have faced difficulties with their supply chains.
According to The Grocer, some wholesalers have struggled to meet demand from the hospitality sector amid the strong pent-up demand from consumers for al-fresco dining.

On 30 March 2021, it became illegal to leave the United Kingdom without a ‘reasonable excuse’. Anyone travelling to a port or airport with the aim of leaving the country could be fined up to £5,000. Tougher measures placed on international travel have led to further calls from industry leaders for more government support for the UK’s aviation sector.
The government has announced a framework to safely restart international travel from 17 May 2021. This would see the removal of the permission to travel form, with recommendations including varying levels of restrictions imposed through a three-category traffic lights system. Airlines have expressed concerns regarding the requirement for all travellers to take at least one expensive PCR test, while Jet2, a major low-cost airline, has announced that it is to extend the suspension of flights and holidays to 23 June 2021.
According to the ONS GDP monthly estimate, the transportation and storage sector grew by 3.5% in February 2021. However, output in the sector remained 13.2% below levels recorded in February 2020.
Transport for London’s bailout funding has been extended until 18 May 2021 in order to keep London’s public transport services running amid a significant fall in operating income. An initial £1.6 billion bailout was agreed in May 2020, followed by a £1.8 billion deal in November 2020. This deal had been due to expire on 31 March 2021, but has now been extended on the same terms for another seven weeks. Passenger income, which typically accounts for 70% of the company’s total income to fund day-to-day operations, was down 66% during the opening nine months of TfL’s 2020-21 financial year.
According to the Civil Aviation Authority, the number of terminal and transit passengers at all UK reporting airports declined by 96.1% in February 2021 compared with the same month in 2020. This followed a 75% fall in the number of passengers passing through UK airports in 2020.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 22 March and 4 April 2021, 30.8% of firms in the transportation and warehousing sector reported that their revenue was lower than would normally be expected for the time of the year. Approximately 27.5% of firms surveyed in the sector between 6 April and 18 April 2021 stated that they had either temporarily or permanently ceased trading.
The easing of coronavirus-related public health restrictions in England on 12 April 2020 has coincided with a slight uptick in public transport usage. According to the Department for Transport, the number of passengers using National Rail services was 32% of pre-coronavirus equivalent levels on 12 April 2021, while passenger numbers on the London Underground was 34% of pre-coronavirus equivalent levels.

The ONS Business Insights and Impacts on the UK Economy survey highlights some of the difficulties still faced by the sector. The data shows that the accommodation and food service activities sector had 44.8% of their workforce on partial or furlough leave between 22 March and 4 April 2021, while 46.7% of the businesses not permanently ceased trading in the sector had cash reserves to last three months or less. Moreover, the sector had the second highest percentage of businesses reporting a decrease in turnover compared with normal levels, at 64.1%.
Some restrictions for the hospitality sector have eased on 12 April 2021, with pubs and restaurants reopening to serve customers sitting outdoors. In preparation for this reopening, many had rushed to create outdoor space in order to welcome customers. According to the latest Market Recovery Monitor by CGA and AlixPartners, just under a quarter of England’s licensed premises, or a total of 20,832 venues, had reopened for outdoor-only service by 15 April 2021. Additionally, UK holidays in self-contained accommodation are permitted, which is expected to boost staycations.
On the day of the reopening, hospitality operators reported a 58.6% increase in overall sales, compared to the same day in 2019, due to the pent-up consumer demand. Fable Data reports that spending in pubs and restaurants serving people outdoors recovered to 42% below their 2019 levels.
Amid the partial reopening, many hospitality businesses have increased hiring and job postings. However, according to The Financial Times, UK pubs and restaurants are facing staff shortages as thousands of workers have returned to their home countries or taken other jobs during the pandemic. UKHospitality states that during the latest lockdown, the hospitality industry had approximately two million staff on furlough, while 660,000 people previously working in the sector have lost their jobs during the pandemic.
Just Eat, a major player in the Online Food Ordering and Delivery Platforms industry, reported a staggering 695% growth in orders in the first quarter of 2021 compared with the first quarter of 2020. The new year has started strong for the company, and other food delivery operators, due to the lockdown restrictions. However, the food delivery boom is expected to subside in the coming months as restrictions for hospitality businesses ease.
At Budget 2021, the Chancellor announced a £5 billion ‘restart’ grant scheme to aid businesses most affected by the crisis, including pubs and hotels, to reopen once restrictions ease. However, some business leaders in England have complained that businesses have not been able to access the grants in time for making premises safe amid the easing of lockdown restrictions.
According to UKHospitality, hospitality sales have plunged 54% in 2020, equating to £72 billion, while 40% of accommodation and food service activities businesses have no or low confidence that their businesses would survive for the next three months, painting a bleak picture for the sector.
According to a report by All-Party Parliamentary Group for the Night Time Industries Association (NTIA), UK nightclubs have been forced to make 51% of their staff redundant since the start of the pandemic. Once restrictions are lifted, on 21 June 2021 at the earliest, the association expects there to be 40% to 50% fewer establishments.
The NTIA states that during the latest lockdown, nightclubs have generated on average 5% of normal revenue by offering takeaway drinks or virtual gigs.

The ONS Business Insights and Impacts on the UK Economy survey shows that 26.3% of businesses in the information and communication sector reported a decrease in turnover compared with normal levels between 22 March and 4 April 2021.
According to data released by UK Finance, there has been a 5% annual rise in money lost to ‘authorised fraud’ in 2020, with £479 million lost by consumers to UK bank fraud, with scams including fake texts about vaccines and lockdown fines.
Online publishers and broadcasters are benefiting from a surge in demand. Software publishers also benefit as more people work remotely for longer. According to Gartner’s worldwide public cloud user spending forecast, global spending on public cloud services will increase 18.4% in 2021, due to a surge in demand for remote services caused by the coronavirus pandemic.
A survey by IHS Markit for advisory firm KPMG and the Recruitment & Employment Confederation in March 2021 found that the IT sector had one of strongest growths in job vacancies.
As reported by the Financial Times, in a report commissioned by the government, the vendor diversity task force states that smaller equipment manufacturers should provide 25% of the kit used in 5G networks and recommends the government set a target to ensure smaller telecommunication equipment makers become key suppliers of 5G equipment. This follows the ban of Huawei’s 5G equipment in 2020 and the requirement for British mobile phone operators to remove existing Huawei equipment from their networks by 2027.
Virgin Media’s £31 billion merger with O2 has been provisionally cleared by the UK Competition and Markets Authority after it concluded that it was unlikely to lead to reduced competition or higher prices for wholesale mobile services.

According to Confused.com’s Car Insurance Price Index, comprehensive car insurance premiums have fallen 14% over the year through 20 April 2021, with motorists paying an average of £538. The figures represent the largest annual drop since 2014 and reflects fewer claims with fewer cars on the road and miles travelled during the lockdowns.
The Investment Association, which represents the UK asset management industry, has called for the abolishment of taxes on UK investment funds to encourage the development of innovative new funds. The industry body has also expressed the desire to consider innovative new funds that will not suffer any tax disadvantages compared with directly competing European funds. It has also stressed simplifying the UK tax regime could offer a boost to administrative jobs outside of London.
The FCA have announced plans to ease special purpose acquisition vehicles (SPAC) as part of the government’s plan to make London a more attractive financial hub. However, the regulator have emphasised it is looking to include a minimum market capitalisation and a redemption option to protect investors in SPACs, before easing regulation.
On 26 March 2021, the European Union and United Kingdom reached a deal on how to co-operate in shaping rules for banks and financial markets. A joint UK-EU Regulatory Forum is expected to be created to discuss legislation. The new deal is intended to avoid incompatibilities and overlaps in rulemaking while leaving each side free to develop its financial system as it sees fit.
UK insurers have called for less stringent capital buffer requirements under the Solvency II regime having left the European Union. Lower thresholds will give insurers greater freedom to invest assets and possibly magnify returns. According to the Association of British Insurers, looser capital rules could generate an additional £16.6 billion in real GDP annually by 2051.
In mid-April, the Financial Conduct Authority (FCA) stated that Britain will seize the opportunity to regulate markets flexibly and make the City more attractive to global investors. According to Reuters, the FCA has begun easing curbs inherited from the European Union on anonymous off-exchange trading in blocks of shares.
Think-tank CityUnited Project states that many in the City believe that instead of delaying change in hopes of gaining access to the bloc, the financial sector should instead be made more competitive. It proposes the introduction of a central bank digital currency to set the foundation for a competitive City, as reported by Reuters.

The ONS Business Insights and Impacts on the UK Economy survey shows that real estate activities sector had the lowest percentage of businesses reporting a decrease in turnover compared with normal levels, at 21.7% between 22 March and 4 April 2021.
According to Nationwide, annual house price growth was 5.7% year on year in March 2021, from 6.9% in February 2021. Prices were down 0.2% month on month. The average house price reached £232,134. Nationwide states that the slowdown is likely due to weakening of demand ahead of the original end of the stamp duty holiday before the extension was announced in Budget 2021. Housing market activity is likely to be supported in the coming months by new government measures, including the furlough and stamp duty holiday extensions, and the introduction of a mortgage guarantee scheme.
Estate agent Knight Frank adjusted its forecast for annual UK house price growth in 2021 from 0% in January 2021 to 5% following the stamp duty holiday announcements in Budget 2021. Estate agent Savills, meanwhile, raised its forecast from 0% to 4% growth.
On 19 April 2021, the government’s new 95% mortgage scheme launched. It will help first time buyers or current homeowners secure a mortgage with just a 5% deposit. Data shows that demand for home ownership has boomed during the pandemic, with 76% of private renters and 70% of those living at home have started saving for a deposit.
In an effort to protect tenants during continued high restrictions and tough financial situations, the ban on evictions in England has been extended for a further two months until the end of May 2021. Previously, the eviction ban was set to end on 11 January 2021 but was extended to 22 February 2021 and then to the end of March 2021.
The ban on commercial evictions, which was set to end at the end of March 2021, has been extended to 30 June 2021. According to The Financial Times on 26 March 2021, rent payments across all sectors at the start of the latest quarter were 21% of the amount owed. Commercial rents are typically paid quarterly and in advance, and payment was due on 25 March 2021 for the period until 24 June 2021.
Bankers and insolvency practitioners warn of widespread business failures in the coming months, when government’s COVID-19 support packages wind down. Once the ban ends and landlords are able to demand repayments of more than a year’s worth of rent from tenants, which may push some over the edge.
One of the largest commercial landlords, Land Securities, had collected approximately two-thirds of the rent owed by tenants in March 2021, with retail and hospitality businesses in London paying only £2 million of the £7 million they owed for the latest quarter, according to the Financial Times.
According to Remit Consulting, over £5 billion of unpaid rent has accumulated during the pandemic.

According to ONS data, the services sector’s output grew by 0.2% in February 2021, with consumer-facing industries performing poorly. The services sector is down 8.8% compared with pre-pandemic output in February 2020. This represents a larger gap than in other sectors.
In the ONS Business Insights and Impacts on the UK Economy survey, 25.5% of businesses in the professional, scientific and technical activities sector reported a lower turnover than normal between 22 March and 4 April 2021, while over half reported that turnover has not been affected.
The UK Services PMI, published by IHS Markit and the Chartered Institute of Procurement and Supply, jumped to 60.1 in April 2021, due to rising confidence in the economy’s recovery over the coming months. This is the fastest pace of expansion in service activity since August 2014.
The government’s test and trace programme has budgeted to spend £438 million on professional services, including using over 2,500 consultants, since the start of the pandemic, as reported by The Financial Times.
Funding cuts could result in the United Kingdom missing on its target of spending 2.4% of GDP on research and development by 2027, according to a study by the Higher Education Policy Institute. The government had previously stated that meeting the target would be essential in rebuilding the economy post-pandemic.
As part of Budget 2021’s plan to support public finances following the dent caused by the pandemic, the chancellor announced a number of measures to tackle tax evasion and avoidance, which is expected to raise £2.2 billion by 2025-26 for the government.

Ofqual interim chief announced A-levels and GCSE are not likely to return to their normal form in England in 2022. Much like the 2020 and 2021 cohorts, the 2022 cohort will have also suffered a lot of disruption. The regulator is looking at different options, including the ongoing provision of teacher-based assessments.
The effectiveness and speed of the vaccination roll-out has proven to be a key selling point for international students. According to a survey university ranking provider, QS, 47% of international student respondents stated they would be more likely to choose to study in the UK because of the vaccination roll-out.
According to a poll conducted by the National Education Union, 35% of teachers wish to leave their role within five years, citing increased workloads and diminishing respect for the profession as reasons behind the desire to quit.
On 3 March 2021, the UK government announced the creation of a new graduate route for international students from UK universities to stay in the United Kingdom for an additional two or three years. Applications will open on 1 July 2021 and to qualify, international students must have completed an eligible higher education course in the United Kingdom and have a track record of compliance with government’s immigration requirements.
The government has announced an additional £720 million package to help pupils in England catch-up with lessons due to school closures, bringing the total COVID-19 educational funding to £1.7 million. £200 million has been awarded to secondary schools to fund summer classes for pupils who need it most, especially those children moving up to Year 7 this year. The remainder of the funding is to be split between weekly tutoring sessions, repeating school years, extending school days and increased well-being support.

According to the NHS, two-thirds of those aged 45-49 have received their vaccinations as of 26 April 2021. Those aged between 40 and 44 will be able to book appointments in the coming days. As of 26 April, the total number of first vaccine doses given in the UK was 33,843,580, with a further 13,201,811 second doses reported.
According to NHS England, approximately 4.7 million individuals are still awaiting treatment from the NHS, and 387,000 have been waiting for more than a year. To clear the backlog, the NHS has partnered with private healthcare providers. Unlike the previous contract initiated at the start of the pandemic, which took over all private hospitals’ capacity in exchange for paying all their costs and cost approximately £400 a month, the new deal will pay them according to the number of patients treated.
In Early April 2020, BEIS pledged an additional £250 million to support pioneering research and development. The money will also fund UK research previously sponsored by Horizon Europe, the world’s largest research programme. The £250 million injection will bring total UK health R&S spending for 2021-22 to £14.9 million, exceeding the goal set in the November 2020 spending review.
On 8 April 2021, it was announced that under-30s in the UK will be offered an alternative COVID-19 vaccine to the one manufactured by AstraZeneca. This follows a review by the Medicines and Healthcare products Regulatory Agency, which found a possible link between the vaccine and a rare form of blood clot.
The NHS plans to copy the flu prevention programme with a mass campaign of booster jabs against new variants of COVID-19 every autumn. The timing of the extra vaccinations means they could be delivered alongside the annual seasonal flu vaccinations long offered to over-65s, and for which eligibility was last year extended to all over-50s.

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