The Scottish Government

Title

Social economy turnover

Associated Targets

To increase the turnover of the social economy in Scotland.

Brief Description

The indicator is intended to measure the sustainable growth of the social economy as a provider of more and better opportunities for individuals and as a provider of innovative, customer-focused public services.

The social economy captures the economic activity of the third sector, which embraces voluntary and community organisations, charities, social enterprises, mutuals and co-operatives. The target will monitor the social economy by measuring the turnover of non-profit making bodies and mutual associations, allowing for the exclusion of industries clearly identified as non-social economy. It will also measure the turnover of housing associations not included in the above.

Strategic Objective(s) to Which Indicator Relates

This indicator informs progress in relation to the Wealthier and Fairer Strategic Objective.

Definitions of Keywords

This is a new indicator. For the purposes of this measure the social economy in Scotland is defined as organisations operating in Scotland that are included on the Office for National Statistics' Inter-Departmental Business Register (IDBR) and have a legal status of 'non-profit making bodies and mutual associations'. Excluded from the above are those industries that are clearly not part of the third sector. The industries excluded are defined using the UK Standard Industrial Classification of Economic Activities 2003 In addition the measure includes housing associations that are included on the Office for National Statistics' Inter-Departmental Business Register regardless of legal status.

Turnover is as defined in the Office for National Statistics' Inter-Departmental Business Register and relates to the Scottish activity of the non-profit making bodies and mutual associations.

Evidence Source

This indicator is currently monitored using a proxy measure as outlined below.

Proxy for main indicator (Data Source) - if relevant

The Office for National Statistics' Inter-Departmental Business Register, which carries information on non-profit making bodies and mutual associations in Scotland.

The above figures are the best official source for the social economy. The figures do, however, exclude the smallest organisations that operate below the VAT threshold and have no (paid) employees. For those that are VAT exempt, turnover is estimated based on employee numbers. It is estimated that around half of the non-profit making bodies and mutual associations operating in Scotland will be VAT exempt.

Analysis of the non-profit making bodies and mutual associations category on the IDBR identified those industries that are dominated by organisations that are clearly not social economy and these industries were excluded from the measure. A list of the exclusions is included under social economy on the Scottish government's business statistics website:

http://www.scotland.gov.uk/Topics/Statistics/Browse/Business/SocEconomy

Most housing associations are not classed as non-profit making bodies or mutual associations, and therefore housing association turnover was identified in the IDBR using the Scottish Registered Social Landlords list of Housing Associations.

Due to the limitations outlined above, it is accepted that this is a proxy measure for social economy turnover. There is increased interest in the use of official data to measure the third sector, both within the Scottish Government and UK government departments. Scottish Government officials will liaise with the UK government on this with a view to developing a more accurate measure of the social economy.

Baseline and Past Trends

The baseline figures used for this target will be for social economy turnover as at March 2007. The 2011 figures will be used as the end point for this target. The 2011 data will be published by March 2012.

The latest figures for this indicator can be found on the Scotland Performs website:

http://www.scotland.gov.uk/About/scotPerforms/indicators/socialEconomy

Methodology for Data Source

This indicator is the sum of all turnover relating to the social economy as shown on the Inter-Departmental Business Register. Figures are deflated using Treasury GDP deflators so that changes can be measured in real terms ( http://www.hm-treasury.gov.uk/economic_data_and_tools/gdp_deflators/data_gdp_index.cfm). This measure is based on a census of non-profit making bodies and mutual associations and will not be subject to revisions

Data Ownership and Quality Assurance

This indicator is based on the ONS business register ( IDBR) and information from the Scottish Housing Regulator. The Scottish Government combines these two data sources and extracts turnover related to social economy organisations.

Publication of Data

The latest data on social economy turnover will be released annually by the Scottish Government and published on the social economy statistics web page:

http://www.scotland.gov.uk/Topics/Statistics/Browse/Business/SocEconomy

Methodology for Recent Change Arrow on Scotland

Position is improving if there is a real terms increase of £10m or more compared with the previous year; worsening if there is a real terms reduction of £10m or more. Movement between +/- £10m suggests the position is maintaining.