Uk Business Perspective

DTI ECONOMICS PAPER NO.19

Business Services and Globalisation
JANUARY 2007

DTI ECONOMICS PAPER NO.19

Business Services and Globalisation
JANUARY 2007

Contents
List of Tables and Figures Foreword Acknowledgements Executive Summary 1. 2. 3. 4. Introduction Business Services in the UK The Globalisation of Business Services Policy Developments and Conclusions ii iv v vi 1 9 25 43 49 53 55 57

References Annex A New statistical classification proposals Annex B UK industrial cleaning – historical case study DTI Economics Papers

i

List of Tables and Figures
Table 1.1: Table 2.1: Table 2.2: The structure of the UK economy by industry Overview of Business service industries (SIC 72-74), 2004 Cost structures of Manufacturing and Business services, 1994, 2004 Concentration ratios for Business services, 2004 The top 10 UK accountancy firms by UK fee income, 2006 Employees with a degree or equivalent qualification in Business services and selected sectors, 2005 Engagement in trade Percentage contribution of Business services to GVA of major economies Percentage of UK GVA, Employment and Total Net Capital Expenditure generated by foreign owned companies Top three UK advertising agencies by billings, 2005 Top three UK advertising holding companies by media billings, 2005 Imports of Services by EU15 countries, Japan & USA, 2004 Copenhagen Economics study: UK sectoral gains 4 10 19

Table 2.3: Table 2.4: Table 3.1:

20 22 27

Table 3.2: Table 3.3:

28 29

Table 3.4:

34

Table 3.5a: Table 3.5b:

36 36

Table 3.6: Table 4.1:

38 45 53

Table A1.1: New SIC proposals

ii

List of tables and figures

Figure 1.1: Figure 1.2: Figure 1.3:

Business services share of the UK economy, 1986 and 2005 SIC divisions 70-74 as a percentage of Section K GVA, 2005 Final and Intermediate demand for Business service products, 2004 UK output for Business services and selected sectors, 1986-2005 Employment in Business services and selected