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

According to Defra, total income from farming is estimated to have been £4,119 million in 2020, a fall of £768 million or 15.7% from 2019. Agriculture’s contribution to the UK economy was £9,435 million in 2020, a 6.7% decrease from 2019.
According to the Office for National Statistics (ONS), agriculture output recorded a 1.4% increase in May 2021.
According to Defra’s latest annual report released in June 2021, the total organic land area in the UK has grown slightly for the second consecutive year, increasing by 0.8% in 2020, with a total of 489,000 hectares of land farmed organically.
The National Farmers Union (NFU) has expressed concern regarding the provisional free trade deal with Australia, warning of implications for animal welfare and environmental standards associated with increased imports of cheaply produced Australian meat products. The NFU has warned that quotas such as an initial 35,000-tonne cap on beef from Australia will not be enough to protect local farmers.
On 30 June 2021, the environment secretary confirmed that farmers will be able to earn up to £70 per hectare for actions to improve the health of their soil. As part of an update on the Agricultural Transition Plan, the government also announced that livestock farmers will be eligible for a free vet-led annual health and welfare review.

According to data from the ONS, mining and quarrying output contracted by 15% in April 2021, due to an 18.2% decline in oil and gas extraction. This was largely the result of planned temporary closures for maintenance of oil field production sites and a fall in fuel exports.
Figures from the World Bank Commodities Price Data (The Pink Sheet) from 2 July 2021 state that Brent Crude oil prices reached US$68.6 per barrel on average between April and June 2021, which is more than double the price recorded in the same period in 2020 (US$31.4 per barrel). The prices of other commodities, including natural gas, metals, precious metals and minerals also surged over the second quarter of 2021 compared with the same period in 2020.
Demand for metals, such as lithium and tin, is expected to surge in the coming years due to the growth in renewable energy and high-tech products, including electric cars. According to Business Live, the government has identified Cornwall as a mining hotspot with high potential for investment. It states that, according to reports, demand for lithium is expected to increase by 400% during the next six years and, following a seven-year high price strength in 2020, copper is projected to have a supply deficit of 327,000 tonnes in 2022. As the government phases out new petrol and diesel cars by 2030, a great supply of lithium, which is used in electric car batteries, can be extracted from mining in Cornwall.
OPEC+ have reached an agreement to increase oil production in response to soaring prices, setting a target to restore all of the output cut at the start of the pandemic by the end of 2022. The price of Brent crude oil has risen by approximately 43% this year to nearly US$74 a barrel.

According to manufacturing association Make UK, the UK manufacturing sector is expected to grow by 7.8% in 2021. This represents an upgrade on previous forecasts, which estimated growth of 3.9%.
According to the ONS, manufacturing output contracted by 0.1% in May 2021 and remained 3% below pre-pandemic levels recorded in February 2020.
The IHS Markit/CIPS UK Manufacturing PMI decreased to 63.9 in June 2021, from a record high of 65.6 in the previous month. This was supported by strong intakes of new business and robust output growth.
According to the Society of Motor Manufacturers and Traders, UK car production was 52.6% lower in May 2021 than in May 2019. However, car production was significantly higher in May 2021 than in May 2020, in which lockdown measures led to the temporary closure of UK vehicle production plants.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 14 and 27 June 2021, 30.6% of firms in the manufacturing sector reported that their revenue was lower than would normally be expected for the time of the year. Approximately 11% of firms surveyed in the sector between 28 June and 11 July 2021 stated that they had either temporarily or permanently ceased trading.
According to provisional estimates published by the ONS, 194,500 employees in the manufacturing sector remained on furlough at the end of May 2021. This was down on the previous month and is significantly below the peak of 911,000 employments furloughed on 17 April 2020.
The Construction Products Association has said that due to the new UK certification scheme post-Brexit, where UKCA certification has to be used for domestic goods, thousands of products are waiting to be tested at an additional expense of up to £50,000 each, pushing up costs for manufacturers.
The number of businesses applying to use the Made in Britain label rose by 130% in the year to April 2021, resulting in 508 new members joining the scheme. In order to use the label, businesses must manufacture in the UK and use British workers. UK manufacturers have been demanding to use the label in order to capitalise on rising domestic demand for UK-produced goods after Brexit.

Data from the ONS states that the largest contributor to growth in services output in April 2021 was wholesale and retail trade, which grew by 0.9 percentage points as sales picked up.
In the ONS Business Insights and Impacts on the UK Economy survey conducted between 14 to 27 June 2021, 25.1% of businesses in the wholesale and retail sector reported a lower turnover than would normally be expected for the time of year. Meanwhile, 20.7% reported a higher turnover than normal. The number of employees in the sector on partial or furlough leave decreased to just 3.2% over the same period.
The chief executive of the Federation of Wholesale Distributors, James Bielby, has stated that the driver shortage has become extreme, reaching 70,000, and has recommended the government having army trucks on standby to make sure there are enough vehicles and drivers to distribute food, according to The Loadstar in mid-June 2021. Lead times have extended, as suppliers have struggled to find a means for delivery, with orders that used to take three days to fulfil now taking more than two weeks. This has been echoed by food wholesaler BidCorp and the National Buying Consortium, which are warning of a worsening food shortages and price inflation if the government does not take action to tackle the shortage of drivers and warehouse operatives.
Truck driver shortages could result in a significant shortage of supplies to the retail stores and hospitality venues as restrictions are further lifted on 19 July 2021, according to The Grocer. In an attempt to tackle truck driver shortages, the United Kingdom is allowing drivers to work longer hours on road; however, haulage companies and unions have said that this could backfire in the longer term as it could worsen their recruitment problems by making working conditions less attractive.
The end of the Trade Credit Reinsurance Scheme on 30 June 2021 has led to fears by wholesalers that essential credit limits will be slashed. The scheme has provided £210 billion in insurance cover for the 15 months it has been in operation and the food and drink industry had called for the government to extend it for a further three months to coincide with the end of furlough, as reported by The Grocer. Axing credit insurance could result in wholesalers having to shorten credit terms to customers, which could pile further pressure on them.

According to the latest BRC-KPMG Retail Sales Monitor, total retail sales increased 13.1% in June 2021 compared with June 2019, when they fell 1.3%. The growth was also an improvement on the previous months’ rise of 10%. Growth has been spurred by the gradual unlocking of the UK economy and release of pent-up demand built up over the previous lockdown. In June 2021, food sales began to slow, non-food sales were bolstered by growing consumer confidence
Springboard expects retail footfall will peak over the course of this coming weekend, with rises of 32.2% on 23 July 2021 and 39.5% on 24 July 2021 as social distancing restrictions are lifted.
UK supermarkets warn of rising costs under the Northern Ireland protocol. The retailers warned that they may need to move their supply chains from Britain to the European Union as a result of the added costs and complexities of moving goods into Northern Ireland. From October 2021, supermarkets face increased red tape at Northern Irish ports under the terms of the UK-EU trade deal, including additional checks, paperwork requirements and the need for Export Health Certificates on products originating from animals.
John Lewis Partnership announced plans to make up to 1,000 job cuts at its Waitrose supermarkets and John Lewis department stores. The business is proposing a reduction in the number of layers between the most senior leaders and non-management staff. The proposals are part of the John Lewis Partnership’s wider Partnership Plan, the major turnaround scheme being spearheaded by partnership boss Dame Sharon White, in which the business aims to reduce costs by £300 million per year by 2022.
Retailers continue to shut doors. Dutch homeware store Hema announced it will close all six of its stores in the UK to focus more on its core markets of Netherlands, Belgium and France. Meanwhile, clothing retailer GAP has announced it would close all 81 UK and Irish stores by the end of September but would continue to operate online. Clothing retailer H&M has also revealed plans to close 350 stores and open just over 100 new ones, resulting in a net decrease of 250 establishments.
Others are looking for new avenues of revenue. Westfield London has launched a new co-working space, Venture X, in an effort to diversify its retail space. Venture X occupies over 19,000 sq ft of space, sitting below the Primark store and overlooking Westfield Square. The space will include podcasting-ready rooms, hybrid meeting rooms enabling digital multicast-screen conferences, in addition to private offices, hotdesking space and shared entertaining spaces with high-speed Wi-Fi.
Department store House of Fraser has started consultations over its move to zero-hour contracts for all staff below management level. The zero-hours contracts would mean store staff face the prospect of losing holiday pay and sick pay. The initiative comes after fellow Frasers Group-owned bicycle retailer Evans Cycles announced 300 job cuts and moved all remaining staff over to zero-hours contracts in March this year.
Tesco has moved into autonomous store technology as e-commerce giant Amazon’s grocery arm open its fifth store in the UK, to be located in Camden. Currently, the Amazon Go stores use a series of cameras and sensors to record which items customers put in or remove from their trolleys while allowing them to walk out without visiting a till point. The shopping order is charged to the consumers Amazon account automatically as they exit.

From 19 July 2021, fully vaccinated citizens returning to England from amber list countries no longer need to quarantine, subject to proof of a negative COVID-19 test. However, all arrivals from France will still need to follow quarantine measures.
Travel across the UK and staycations are benefiting from the lack of countries on the green list. The Financial Times reports that on the 3 June 2021, the day that Portugal was removed from the green list, travel website Trainline recorded an 86% rise in bookings for domestic open return tickets for the next two weeks compared with the previous two days.
According to the ONS, the transportation and storage sector contracted by 0.4% in May 2021. Output in the sector remained 10.9% below pre-pandemic levels recorded in February 2020.
According to Airports Council International Forum, UK airline passenger numbers were down 89% in June 2021compared with 2019 levels. This is behind the European average of 78% below 2019 levels.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 14 June and 27 June 2021, 18.7% 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 18.9% of firms in the sector surveyed between 28 June and 11 July 2021 stated that they had either temporarily or permanently ceased trading.
Upon the release of The Williams-Shapps Plan for Rail on 20 May 2021, the government has announced a major restructuring of the UK rail network, which will take effect from 2023. Plans include a new public body, Great British Railways, which will be responsible for owning the infrastructure, collecting fare revenue and setting fares and timetables. Rail services will still be run by private-sector operators, with the current franchising system replaced by Passenger Service Contracts, which will include targets on punctuality and efficiency.

The ONS Business Insights and Impacts on the UK Economy survey shows that 17.8% of businesses in the information and communication sector reported a decrease in turnover compared with normal levels between 14 and 27 June 2021, the second lowest of all sectors. It also had the second lowest percentage of businesses trading, at 83.3%, between 28 June and 11 July 2021.
The UK government plans to regulate video streaming companies in the same way as traditional TV broadcasters like the BBC and ITV. Streaming giants Netflix, Amazon Prime and Disney+ could all be affected. If the proposal is approved, industry watchdog Ofcom would be allowed to rule on complaints relating to issues including bias and accuracy similar to its oversight of more traditional broadcasters.
According to The Financial Times, the UK government plans an overhaul of broadcasting rules to guarantee the prominence of public service media on smart TVs, with measures drawing on recommendations that are to be published by Ofcom in July 2021.
Despite opposition from some ministers, as well as media companies and food and drink makers, Prime Minister Boris Johnson is planning to ban junk food advertising on TV before 9pm and online at all times from the end of 2022 in a bid to tackle child obesity. According to government impact assessment estimates, the average British child will consume between 0.1 and 3.9 fewer calories per day as a result of the advertising curb and it could reduce the number of obese children by more than 20,000. Children in the UK aged between seven and 10 typically consume between 1,500 and 2,000 calories per day, as reported by The Financial Times. The government estimates broadcasters will lose about £66.3 million a year in advertising revenue as a result of the restrictions, while for online platforms the figure is £178 million.
Online fraud in the United Kingdom has risen by a third during the pandemic, with £2.3 billion lost by consumers in 2020. Online shopping and auction frauds accounted for the largest share of online fraud in 2020 and had risen by 65% compared with the previous year, according to data from Which?.
Telecoms operator BT has pledged to expand its 5G network to cover 90% of the UK landmass by 2028 and to add 4,500 square miles to its rural coverage map by 2025, despite the government’s ban on Huawei equipment.

In the ONS Business Insights and Impacts on the UK Economy survey, 16.6% of businesses in the real estate activities sector reported a decrease in turnover compared with normal levels between 14 to 27 June 2021, the lowest of all sectors.
According to Nationwide, annual house price growth was 13.4% in June 2021, the highest level since November 2004. Prices were up 0.7% month on month, lower than the 1.7% rise in May 2021. The average house price reached £245,432. This is due to consumers rushing to beat the end of the stamp duty holiday, low interest rates and changing consumer preferences for properties.
Nationwide has stated that although the extension to the stamp duty holiday has had an effect, it has not been the main reason for growth. 68% of homeowners surveyed at the end of April 2021 that were either moving home or considering a move stated that this would have been the case even if the stamp duty holiday had not been extended. The main driver behind demand is the shifting housing preference as people continue to reassess their needs, with many seeking more space.
The UK Treasury has extended the current rent moratorium on commercial properties until March 2022 in an attempt to protect businesses from being evicted by tenants. Landlords still face significant rent shortfalls, with total arrears estimated to be over £6 billion. According to commercial property management platform Re-Leased, commercial property owners collected just 18% of what they were owed on 25 June 2021, which was when rent was due for the three months to the end of September 2020. This is the lowest collection rate recorded in a year.
Following the government’s extension on the ban on commercial evictions, UK commercial landlord British Land has put tenants on notice that it will halt rent concessions, as now that restrictions are lifted many of its customers were trading well. Due to tenants being unable or unwilling to pay rent, the company wiped more than £1 billion from the stated value of its holdings in May 2021.
Foreign investors are investing heavily in UK regional property, gaining better returns than the capital. The average house price in England increased by 8.9% over the year to April 2021. But in London the rise was just 3.3%. According to consultancy Savills, investment into the private rental sector in large cities Manchester, Birmingham and Leeds exceeded £1 billion in 2020, up from £361 million in 2018, as reported by The Financial Times.

Despite the ending of social restrictions on 19 July 2021, the government may be forced to re-impose coronavirus restrictions in the autumn if cases continue to rise, the former health secretary says. Jeremy Hunt says the NHS is facing a serious situation, with rapidly increasing numbers of hospital admissions. For the first time since mid-January, more than 50,000 daily coronavirus cases have been reported in the UK.
Free flu jabs will be offered to people aged two to 16, over 50 or in ‘at-risk’ groups this winter, amid the double threat of COVID-19 and influenza.
Public health leaders struggling to contain a rising tide of COVID-19 infections in England and are being hampered by delays in accessing and processing PCR tests, even as the country lifts its last pandemic restrictions. Test turnaround times have been lengthening, part of the reason for slowing down the number of tests taken was to ease the strain on lab capacity.
The Competition and Markets Authority has imposed £260 million in fines on a number of pharmaceutical companies for increasing the price of Hydrocortisone by more than 10,000 per cent and paying rivals to stay out of the market. Hydrocortisone is used by those who suffer from adrenal insufficiency, which includes life-threatening conditions such as Addison’s disease.
NHS workers are set to be spared onerous COVID-19 self-isolation rules amid a staffing crisis as ministers try to keep key public services and business working ahead of the lowering of England’s defences against the disease.
According to an analysis by Labour of NHS data, the number of beds available for mental health has fallen 25% since 2010, despite a big rise in the number of people seeking help from the NHS for mental illness. The number of people in touch with NHS mental health services increased 21% from 117,000 in January 2016 to 141,000 in March 2021. There were also 23,447 consultant-led mental health beds in 2010-11 and 17,610 in 2020-21, a reduction of 5,837 (25%).
The UK vaccination booster programme gained approval and is expected to commence in September 2021. More than 30 million of the most vulnerable should receive a third dose, vaccine experts are advising. They will include all adults aged 50 and over and anyone over 16 who qualifies for a flu jab. The vaccines are thought to protect most people against serious illness for at least six months, though there is a lack of data on exactly how long immunity lasts.

Despite all legal limits being lifted, venues and theatres, while excited, are tentatively making changes to their policies . Some are opting to keep some restrictions including social distancing and are recommending visitors wear masks.
Concert and festival ticket buyers have been warned to double check insurance policies. According to a survey by Which?, 40% of surveys thought insurance would cover them if a national lockdown meant the event could not go ahead as planned, while 33% believed thought it would pay out if the event could not go ahead due to a local lockdown. However, in all of these cases ticket holders should be refunded regardless of whether they bought insurance.
The four-week delay to the full lifting of social restrictions meant an additional 5,000 music gigs faced the decision to postpone the event again or cancel shows altogether. Industry body Live estimates the events scheduled for those four weeks were worth £500 million to the struggling live music industry.
The British government is currently undertaking a review of The Gambling Act 2005, the basis for all gambling regulation, in order to test its fitness for the digital age. According to the Gambling Commission, while fewer people were gambling during the pandemic, many already engaged online gambling consumers were expanding into new activities and spending more time and money betting.

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