So what does ‘Beyond GDP’ mean for the UK, from the Beyond GDP series of events.

1. So what does 'Beyond
GDP' mean for the UK?
12 October 2023
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2. Welcome
Paul Allin
Honorary Officer for National Statistics, Royal Statistical
Society (RSS)
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3. Agenda
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10:00 – 10:05 Chair’s welcome and ‘housekeeping’
Paul Allin, Honorary Officer for National Statistics, RSS
10:05 – 10:15 Setting out 'Beyond GDP' for the UK
Liz McKeown, Office for National Statistics
10:15 – 10:25 Environment statistics and Beyond GDP
Ellen Clowser, Office for National Statistics
10:25 – 10:35 Inclus
Richard Heys, Office for National Statistics
10:35 – 10:45 Questions to plenary speakers
10:45 – 11:45 Panel and audience discussion: Professor Sir Ian Diamond, National Statistician; Lord
Richard Layard, Centre for Economic Performance, London School of Economics; Rhiannon
Hardiman, Future Generations Commission for Wales; Thomas Viegas, Taskforce on Nature-
related Financial Disclosures
11:45 – 12:00 Closing remarks and event closes

4. Setting out 'Beyond GDP'
for the UK
Liz McKeown
Director of Public Policy Analysis
ONS
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5. Robert Kennedy, 1968
“[GDP]…does not allow for the health of our children, the
quality of their education or the joy of their play. It does not
include the beauty of our poetry or the strength of our
marriages, the intelligence of our public debate or the
integrity of our public officials.
It measures neither our wit nor our courage, neither our
wisdom nor our learning, neither our compassion nor our
devotion to our country, it measures everything in short,
except that which makes life worthwhile.”
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6. Going Beyond GDP…
Role of ONS –
Statistics for the
Public Good
GDP, its strengths
and limitations
Developing broader
economic welfare
measures
The importance of
indicator based
approaches
Our measures of
Inclusive Income
Our UK Measures of
National Well-being
Capturing what’s missing in GDP, for example
environmental considerations
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7. Report
Review of the
UK Measures
of National
Well-being
(5 July 2023)
Online consultation
(Oct to Dec 2022)
New research on
‘What matters
most?’ using the
Opinions and
Lifestyles survey
(Oct 2022)
Review of literature
and well-being
frameworks
Stakeholder
Engagement
Qualitative
Research
(Jan 2023)
Technical Advisory
Group
Reviewing our measures of Well-being..
The 10 domains of Well-being
Personal
well-being
Our
relationships
Health What we
do
Where we
live
Personal
finance
Education
and Skills
Economy
Governance Environment
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8. Introducing the New Well-being Dashboard
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9. What's next on well-being?
7 November: Annual update to Personal Well-being, including
breakdowns by personal and protected characteristics.
10 November: Next iteration of the UK MNW, including data on two
new measures, 'Hope' and 'Fair Treatment', for the first time.
Development of a smaller indicator set
Improvements to the dashboard from user testing
Collaborating internationally to improve coherence
Maximising the impact of Well-being publications
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10. Environment
developments at ONS
Ellen Clowser
Environment Division
ONS
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11. ONS’ environment track record July 2023: First quarterly
emissions residence-based)
estimates published (for Q1 2023)
2022: First Extent &
Condition of UK Natural
Capital report published
1996: Pilot environmental
accounts published (for 1993)
1999: EA summary
added to the Blue Book
(UK National Accounts)
2014: First UK Natural
Capital Accounts published
2015: First Low Carbon &
Renewable Energy Economy
Survey results published
2020: NCAs added to
the Blue Book
September 2023: First
experimental green jobs
estimates
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12. UK Environmental Accounts (SEEA central framework)
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13. Environmental
economy:
Experimental
estimates of UK
green jobs
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14. UK Natural Capital Accounts
(SEEA ecosystem accounts)
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15. Developing our Natural Capital
Accounts
Following the ground-breaking Dasgupta Review of the
Economics of Biodiversity, we have worked to accelerate
the development of the Natural Capital Accounts:
Adding
more
spatial
granualarity
Developing
supply and
use tables
for natural
capital
accounting
Working on
estimates
of depletion
Looking to
reach a
wider
audience
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16. Measuring National Well-being: Environment
Greenhouse gas
emissions
Renewable energy
consumption
Household
recycling
Protected areas
Priority species Air pollution Surface water
status
Pro-environmental
lifestyle
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17. Coming soon and on the horizon
Expanding
scope
Developing
new methods
Increasing
timeliness
Growing more
granular
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18. The Inclusive Income and
Wealth Framework
Richard Heys
Deputy Chief Economist
Head of Productivity, Innovation and Research
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19. GDP:
A Short History

20. GDP : A Short History
London, 1948: Birthplace of the SNA
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21. But capital matters too…
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22. Inclusive Income and
Wealth – extending the
SNA Framework

23. SNA Production/Economic Activity SNA Assets
Inclusive Income: Shifting Boundaries
If you want to ‘capture more capitals’,
you need to properly capture:
• Investment
• Output
• Depreciation
• Depletion
You can do this by extending the SNA
‘asset boundary’ and ‘production
boundary’ in symmetric steps.
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24. • Expansion of the asset and production boundaries
to include investment in an expanded array of
natural capitals, as well as the ecosystem services
ecosystem services derived from these capitals
• Expansion of the asset boundary to include
investment in human capital
• Expansion of the asset boundary to include
investment in an expanded array of “intangible
capitals”
• Expansion of the production boundary to include
services produced by the household for own-use
own-use and expansion of the asset boundary to
boundary to include the household durables used as
capital when producing these unpaid household
services
Inclusive Income Inclusive Wealth
Human
Capital
Investment
Human
Capital
Eco-
system Natural
Services Capital
(Expanded) Intangible Asset
Investment
Unpaid Household Services
(Expanded) Intangible Asset
Investment
SNA Production/Economic Activity SNA Assets
Household Capital
Inclusive Income: Shifting Boundaries
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25. So far we’ve been able been able to
cover the areas with the bold, red
outline.
In addition, we’ve included a quality
adjustment for public services.
Important to note that we haven’t yet
included human capital or all eco-
system services. We’re currently
undertaking research to include
these in the future.
Human
Capital
Investment
Human
Capital
Eco-
system Natural
Services Capital
(Expanded) Intangible Asset
Investment
SNA Production/Economic Activity SNA Assets
(Expanded) Intangible Asset
Investment
Unpaid Household Services Household Capital
Inclusive Income Inclusive Wealth
Inclusive Income: Shifting Boundaries
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26. • National Accounts – economic
activity within the production
boundary
System of National
Accounts (2008)
Inclusive Income: Building Blocks
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27. • National Accounts – economic
activity within the production
boundary
Household Satellite Accounts –
economic activity within the household
without participating in economic markets
UNECE Guide on Valuing
Unpaid Household Work
(2018)
Inclusive Income: Building Blocks
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28. • National Accounts – economic
activity within the production
boundary
Human Capital Satellite Account –
investment, depreciation, and stocks
of human capital
UNECE Guide on
Measuring Human Capital
(2016)
Household Satellite Accounts –
economic activity within the household
without participating in economic markets
Inclusive Income: Building Blocks
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29. • National Accounts – economic
activity within the production
boundary
Environmental Satellite Accounts –
economic value of the natural world,
including natural capitals
Human Capital Satellite Account –
investment, depreciation, and stocks
of human capital
System of Economic
Environmental Accounting
Household Satellite Accounts –
economic activity within the household
without participating in economic markets
Inclusive Income: Building Blocks
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30. Beyond GDP:
Inclusive Income
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31. Grey bars are our
different measures of
economic welfare
Green bars are
positive contributions
from the previous
welfare measure to the
next
Red bars are negative
contributions
Inclusive Income: Results
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32. Inclusive Income: Results
2005=100, UK, chained volume measure Gross and Net Inclusive
Income grew slightly slower
than their national accounts
counter parts (GDP and
NNDI, respectively)
Additionally, the inclusive
income measures were less
volatile than their national
accounts counterparts
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33. Contributions to (volume) Gross Inclusive Income
growth
Contributions to (volume) Net Inclusive Income growth
Inclusive Income: Results
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34. Questions to plenary
speakers
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35. Panel discussion
Chair: Paul Allin
Honorary Officer for National Statistics
Royal Statistical Society
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36. Panellists
• Professor Sir Ian Diamond, National Statistician
• Lord Richard Layard, Co-Director, Community Wellbeing
Programme, Centre for Economic Performance, London School
of Economics
• Rhiannon Hardiman, Change Maker, Nature, Climate Change
and Decarbonisation, Future Generations Commission for Wales
• Thomas Viegas, Partnerships Lead, Taskforce on Nature-
related Financial Disclosures
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37. Closing remarks and next
steps
Paul Allin
Honorary Officer for National Statistics
Royal Statistical Society
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