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 1.4% contraction in January 2021. Output also remained 12.5% below levels recorded in January 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.

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 recorded a 2.3% decline in January 2021, representing the first contraction since the initial coronavirus-induced decline in April 2020. Following this decline, manufacturing output remained 5.7% below pre-pandemic levels recorded in February 2020.
The IHS Markit/CIPS UK Manufacturing PMI increased to 55.1 in February 2021, from 54.1 in the previous month. This represented the ninth consecutive month of expansion in the sector, though supply chain disruption and rising costs constrained output growth to its weakest rise in the nine-month sequence.
According to the Society of Motor Manufacturers and Traders, new car registrations were down by 35.5% in February 2021 compared with the same month in the previous year, as strict public health restrictions led to the closure of motor vehicle dealers' Year-to-date registrations were down 38.1% compared with the same period in 2020.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 22 February and 7 March 2021, 51.3% of actively trading participating manufacturing firms stated that their revenue remained below what they would usually expect for the time of year. Similarly, 18.3% of firms surveyed in the sector between 8 March and 21 March 2021 stated that they had either temporarily or permanently ceased trading.

According to the ONS, construction output grew by 0.9% in January 2021, driven by growth in new work activity. Nevertheless, output in the construction sector remained 2.6% below levels recorded in February 2020.
The IHS Markit/CIPS UK Construction PMI increased to 53.3 in February 2021, from 49.2 in the previous month. This return to growth was supported by increased new orders, with residential construction remaining the strongest area of growth.
In the ONS Business Insights and Impact on the UK Economy survey conducted between 22 February and 7 March 2021, 39.5% of actively trading participating construction firms stated that their revenue remained below what they would usually expect for the time of year. Additionally, 17.9% of firms surveyed in the sector between 8 March and 21 March 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.
Problems at major container ports, caused in part by coronavirus-related restrictions, have led to a shortage of key construction materials. According to the Builders Merchant Federation, ongoing shortages of materials could lead to delays to UK housebuilding.

Data from the ONS states that the largest contributor to falling services output in January 2021 was wholesale and retail trade.
In the ONS Business Insights and Impacts on the UK Economy survey, 44.9% of businesses in the wholesale and retail sector reported a decrease in turnover between 22 February 2021 and 7 March 2021 compared with normal expectations for this time of year.
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.
Wholesale sector performance is expected to have improved once the government announced the roadmap for lifting lockdown as retailers seek to build up stock levels in anticipation of consumers returning, with car dealers able to reopen from 12 April 2021.
On 1 February 2021, it was reported that the Federation of Wholesale Distributors had criticised the government for failure to support food and drink wholesalers while providing significant support to supermarkets during the coronavirus pandemic. It argues that this assistance could lead to supermarket monopoly, having significant consequences for regional jobs, diversity of supply and consumer choice.

According to the Confederation of British Industry, retail sales continued to fall by 45% over March 2021 with particularly sharp declines in clothing, footwear, furniture and carpets and department stores. Supermarkets recorded the largest year-on-year decline in sales since April 2020, although this is compared with a period of high demand and stockpiling during the first lockdown in March 2020.
In March 2021, online women’s clothing retailer Boohoo launched a range of sustainability pledges. Initiatives include ensuring all materials used are ‘more sustainable’ by 2030, launching resale and recycling offers across all its brands by 2023 and reducing textile waste going directly to landfill from its supply chain by 2025.
Following lockdown easing on 12 April 2021, the government has announced shops in England will be permitted to open from 7am to 10pm. The extended hours will apply Monday to Saturday to encourage shoppers to return, while easing pressure on public transport at peak times.
On 26 March 2021, the UK Supreme Court ruled Asda shop staff are entitled to compare themselves to colleagues at distribution centres for equal pay purposes. However, further investigation is needed including an inquiry by the employment tribunal deciding whether specific store and distribution jobs were of ‘equal value’. Lawyers representing the store workers argued that distribution depot workers receive between £1.50 and £3.00 per hour more. The ruling may have implications for supermarkets and other retailers.
The UK high street continues to struggle. On 11 March 2020, department store John Lewis warned of further store closures after lockdown restrictions ease on 12 April 2021 due to weak profit. The company also announced that its real estate portfolio will be adjusted over the next five years to reflect the change in online shopping. Large stores with more space given over to experiences will be complemented by smaller-format local shops and more John Lewis outlets within bigger Waitrose supermarkets.
The Treasury is currently reviewing the future of business rates, which retailers regard as punitive, out of date and unfair. One option for reform is a 2% tax on sales made online where the proceeds are to be used to reduce business rates on properties. However, this approach could prove more harmful to retailers with significant online operations, particularly following the pandemic as consumer purchasing behaviour shifts. The report is due to be finalised in Autumn 2021.

All international arrivals to the United Kingdom are currently required to quarantine for 10 days, with travellers also asked to provide proof of a negative PCR test taken in the 72 hours prior to travelling. Additionally, the government has published a list of 35 countries from which travellers will be refused. Any travellers who cannot be refused entry are required to isolate in government-approved accommodation for 10 days. Meanwhile, 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. The ban will remain in place until 30 June 2021, though it is subject to change based on possible changes to rules on foreign travel from 17 May 2021. Tougher measures placed on international travel have led to further calls from industry leaders for more government support for the UK’s aviation sector.
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.
The Department for Transport has introduced legislation to extend the airports slot allocation waiver, ensuring that airlines do not have to operate flights 80% of the time to retain their slots. The legislation to extend the waiver came into force on 26 March 2021, covering the summer slot season.
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 February and 7 March 2021, 40.9% 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 22.9% of firms surveyed in the sector between 8 March and 21 March 2021 stated that they had either temporarily or permanently ceased trading.

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 25.5% between 22 February and 7 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.
Amid the rise in online fraud, the governor of the Bank of England has called for the government to increase regulation for big technology companies that put consumers at risk by hosting scam financial promotions on their online services.
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.

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.

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 27.4% between 22 February and 7 March 2021.
According to Nationwide, annual house price growth was 6.9% year on year in February 2021, up from 6.4% in January 2021, with prices up 0.7%. The average house price reached £231,068.
Halifax and the Office for Budget Responsibility expect house prices to fall over the year. Nevertheless, shifts in housing preferences could continue to provide some support for the market.
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.
According to data from Rightmove, the number of potential buyers enquiring about each available property in March 2021 surged and is a record 34% higher than the same period in the previous year. In March 2021, website visits to Rightmove jumped 40% from February 2021.
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.

According to ONS data, the services sector’s output declined by 3.5% in January 2021 following heightened restrictions resulting in declines in consumer-facing services industries. The services sector is down 10.2% 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, 30.6% of businesses in the professional, scientific and technical activities sector reported a decrease in turnover between 22 February and 7 March 2021, while 52.5% reported that turnover has not been affected.
The interim composite purchasing managers’ services sub-index, published by IHS Markit and the Chartered Institute of Procurement and Supply, rose to 56.8 in March 2021, outpacing the manufacturing index for the first time since the start of the pandemic. 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.

On 17 March 2021, the NHS warned of a significant reduction in supplies of jabs and ordered a freeze on new vaccination appointments for April 2021. The NHS warned ‘volumes for first doses will be significantly constrained’ and the start of inoculations for the under-50s would be delayed due to manufacturing issues with AstraZeneca and Moderna. Although, NHS England's medical director for primary care has stated the United Kingdom has enough vaccine supplies to ensure individuals are able to receive their second doses without disruption. More than 2.5 million have now received their second dose, with more than one-third of these taking place over the week commencing 21 March 2021.
Following a temporarily suspension to administrating the AstraZeneca vaccine, Germany, France, Italy and Spain announced they would resume roll-out after European Medicines Agency regulator finished its investigation and concluded the vaccine was not association with potential risk of blood clots.
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.
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.

The insurance industry has warned music festivals, concerts and other major leisure events risk being cancelled unless the government followed others in Europe and offered to insure events against the risk of COVID-19 cancellations. Event organisers have warned without an insurance scheme, the risk of pushing on with planning with no certainty on what the future holds is too large. The risk of cancellations is higher with a third wave of COVID-19 looming across Europe. Industry association MusicUK estimated that a £650 million government-backed insurance fund could unlock £2 billion worth of commercial activity that would otherwise not go ahead.
Outdoor sporting facilities, such as tennis courts and golf courses, have been allowed to open from 29 March 2021 in the second part of stage one of easing of lockdown. Gyms, swimming pools and other indoor exercise venues will reopen in the second stage, which begins on 12 April 2021.
According to a report by All-Party Parliamentary Group for the Night Time Economy Association, 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.

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