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 December 2019 and December 2020.

According to ONS data, mining and quarrying fell by 2.1% in February 2021, and has fallen every month since its peak in June 2020. Oil and gas extraction has recorded large declines since June 2020 due to tightened restrictions weakening demand.
The UK government has agreed a to allow more oil and gas wells to be drilled in the North Sea, with the North Sea oil and gas industry aiming to cut its carbon emissions and transition away from fossil fuels. The joint venture investment would be up to £16 billion, supporting 40,000 jobs. In return the industry promises to cut emissions by 50% by 2030.
Planning approval on a new coal mine project in the North West worth £160 million has been delayed further due to the government facing increasing pressure from green groups and activists. It is likely that the project will not go ahead following this latest delay.
Oil and Gas UK reports that oil production has declined by 5% over 2020 and while prices have recovered to an extent, it expects a further 5% to 7% decline in production in 2021 amid the lingering effects of the coronavirus pandemic.

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.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 8 March and 21 March 2021, 42.3% of actively trading participating manufacturing firms stated that their revenue remained below what they would usually expect for the time of year. Similarly, 15.6% of firms surveyed in the sector between 22 March and 4 April 2021 stated that they had either temporarily or permanently ceased trading.

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 8 March and 21 March 2021, 38.1% of actively trading participating construction firms stated that their revenue remained below what they would usually expect for the time of year. Additionally, 16.8% of firms surveyed in the sector between 22 March and 4 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.
Announcements made in the Spring Budget are likely to benefit construction and housebuilding activity in the medium term. In particular, a super-deduction on company investments in new plant and machinery assets, which will allow companies to benefit from a 130% capital allowance from 1 April 2021 to 31 March 2023, will enable companies to cut their tax bill by 25p for every £1 of investment.
Excess demand from contractors and shipping delays have led to a shortage of construction materials for UK contractors. Products such as cement, aggregates, plastic products, timber, steel, roof tiles and bricks are included on the shortages list.

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, 40.3% of businesses in the wholesale and retail sector reported a decrease in turnover between 8 and 21 March2021 compared with normal expectations for this time of year.
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 a CBI Economics survey from late February 2021, job losses across the UK’s wholesale and retail sector fell at the fastest pace since the survey began in 1983.
The wholesale sector’s performance is expected to have improved since the government announced the roadmap for lifting lockdown as retailers built up stock levels in anticipation of consumers returning from 12 April 2021.

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 just over half of their workforce on furlough between 8 and 21 March 2021, while 47.1% of the businesses not permanently ceased trading in the sector had cash reserves to last three months or less. Moreover, the sector had the highest percentage of businesses reporting a decrease in turnover compared with normal levels, at 69%.
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, approximately 38% of licensed premised (over 41,000 venues) in the United Kingdom have stated that they have outdoor space that allows them to reopen. Additionally, UK holidays in self-contained accommodation is permitted, which is expected to boost staycations.
From 17 May at the earliest, hospitality venues may be allowed to seat customers indoors. Additionally, hotels and B&Bs can reopen, while international leisure travel may also resume.
A ‘traffic light system’ for foreign travel in England was unveiled at the start of April 2021 for when international travel resumes, with countries graded green, amber or red. Overseas holidays to some countries will be allowed, but travellers would have to pay for COVID-19 tests on their return. Destinations will be assessed particularly on their level of vaccinations and the prevalence of new COVID-19 variants. The list of countries and their respective ‘colour’ is expected to be released in early May 2021 to provide the travel industry with time to prepare.
As the requirement for travellers to have a COVID-19 test may limit demand for international travel and has faced criticism from some in the travel industry, the government has promised to lower the cost of testing to encourage foreign holidays.
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.
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. The grants will be worth up to £18,000 each. Moreover, the VAT rate cut to 5% has been extended until September 2021, with an interim rate of 12.5% applied for the following six months.
According to UKHospitality in March 2021, 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.

The ONS Business Insights and Impacts on the UK Economy survey shows that the information and communication sector had the lowest percentage of businesses reporting a decrease in turnover compared with normal levels, at 23.9% between 8 and 21 March 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.
HMRC estimates that fraud and error amounts to £3.5 billion for the furlough scheme alone, highlighting the level of coronavirus-related fraud.
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 telecoms 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.

The Bank of England is demanding that lenders seek its approval before relocating UK jobs or operations to the European Union, after becoming concerned that European regulators are asking for more to move than is necessary for financial stability after the UK’s departure from the European Union. However, the central bank’s stands has been criticised as regulatory over-reach.
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 EU 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 second lowest percentage of businesses reporting a decrease in turnover compared with normal levels, at 27.9% between 8 and 21 March 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.
In Budget 2021, the Chancellor extended the stamp duty holiday for up to six months, resulting in hundreds of thousands of homebuyers saving up to £15,000. According to lawyers, a potential extension of the stamp duty holiday in Budget 2021 risks to further increase house prices as well as a larger paperwork backlog.
Estate agent Knight Frank adjusted its forecast for annual UK house price growth in 2021 from 0% in January 2021 to 5% following the announcements in Budget 2021. Estate agent Savills, meanwhile, raised its forecast from 0% to 4% growth.
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.
One of the largest commercial landlords, Land Securities, has 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, 29.4% of businesses in the professional, scientific and technical activities sector reported a decrease in turnover between 8 and 21 March 2021, while 53.9% reported that turnover has not been affected.
The UK Services PMI, published by IHS Markit and the Chartered Institute of Procurement and Supply, rose to 56.3 in March 2021, representing the first month of growth since October 2020. This is due to rising orders ahead of the planned easing of lockdown restrictions.
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-coronavirus.
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.

According to UCAS, one in five UK students were not able to study the right subjects to prepare for a degree that interested them, while 40% of survey respondents stated they would have made better choices if they had received better information and advice at school. The Department for Education in England has invested over £100 million over 2020-21 towards high quality careers provision, including the rollout of the enterprise adviser network, reaching more than 4,000 schools and colleges and connecting 3.3 million young people to future employers, although recognises there is more work to do done.
According to the ONS, 12% of recent university graduates were unemployed over three months through December 2020, almost double the average rate over the past three years. This compared with an unemployment rate of 4.6% for the wider graduate workforce and 5.1% for the working age population overall. Competition for graduates is expected to intensify as the 2021 class graduates.
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 have announced an additional £720 million package to help pupils in England catch-up with lessons due to school closures, bringing the total COVID 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.
GCSE and A-level students are set to have their grades decided by teachers after 2021 exams were cancelled in England due to the coronavirus pandemic. Grades will be determined by a combination of mock exams, coursework and essays. If students are unhappy at the outcome of what their school and teachers have decided, they can appeal, with no financial charge expected. For those still wanting to take written papers, there will be an option of exams in Autumn 2021.
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.

The Department of Health and Social Care has confirmed that doses of the Moderna vaccine will be rolled out in England from mid-April. This follows the delivery of first doses in Wales and Scotland. The chief executive of NHS Providers has also confirmed that the UK is now ready to expand the vaccine rollout to over-40s, following previous delays caused by a temporary reduction in supply. As of 13 April 2021, the UK has administered more than 32 million first vaccine doses, while almost 8.2 million people have been fully vaccinated.
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 number of patients waiting for care in hospitals in England reached a record 4.59 million over the week commencing 8 March 2021 and the NHS is under growing pressure to proceed with as many operations as possible. However, health leaders are arguing it is not possible with limited resources and have called for an additional £8 billion funding, above the service’s main budget, which covers its day-to-day running costs, or the NHS faces cutting services.
According to data published by NHS England, the number of urgent cancer referrals was 16% lower between March 2020 and January 2021 than in the same period in the previous year.
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.
The UK government will give itself powers to bail out social care companies. The Secretary of State for Health and Social Care is already allowed to make emergency payments directly to non-profit providers in financial trouble, but draft legislation on reforming the NHS proposes extending this to private-sector owners of companies that run residential care facilities or provide nursing services for the elderly and disabled in their own homes.

For more information on any of the UK’s 500+ industries, log on to www.ibisworld.com, or follow IBISWorld on LinkedIn and IBISWorldUK on Twitter.

Latest Articles