Economic statistics sector classification – classification update and forward work plan: January 2023

Our economic statistics are produced in accordance with international rules and guidance. Central to this are the rules set out in the United Nations System of National Accounts (SNA) 2008, the European System of Accounts (ESA) 2010 and the accompanying Manual on Government Deficit and Debt (MGDD) 2019. These include rules on classifying statistical units (organisations or bodies) and the transactions they engage in. A summary of these, and our approach to their application, can be found on our Economic statistics classifications web page.

Our Forward work plan (XLS, 120KB) sets out the organisations and transactions that we expect to assess and classify in the next 12 to 18 months. Please note that classification priorities can change quickly, and the expected dates of completion are only indicative at the time of publication. There is high demand for classification assessments, and we progress many active cases at the same time, with new cases often arising. These include confidential assessments of government and devolved administration policy proposals, as explained in our classification process.

We do not announce or discuss such policy proposal assessments, to give policymakers the space to develop policy. When a policy is implemented, we will publish a classification decision. You can read our Public Sector Classification Guide (XLS, 3.1MB) for more information.

Therefore, the forward work plan does not cover all cases that will arise over the next 12 to 18 months; cases that are likely to have a smaller statistical and policy impact will be assessed as resources allow. The cases scheduled in this article have been prioritised because of the impact they will have on important statistics and their importance to public policy.

There is one deletion from the forward work plan this month, the Electricity Generator Levy. There are no additions.

Gangmasters and Labour Abuse Authority

We carried out a classification assessment of the Gangmasters and Labour Abuse Authority (GLAA), in the context of internationally-agreed statistical guidance as described in the Introduction.

GLAA is a non-departmental public body (NDPB) previously known as the Gangmasters Licensing Authority (GLA). The purpose of the GLAA is to protect vulnerable workers at risk of exploitation and to disrupt serious, organised crime.

The assessment concluded that the GLAA has the requisite autonomy of decision to be an institutional unit and is subject to public sector control, as all members of the GLAA Board are appointed by the Home Secretary. The GLAA is also a non-market producer, as the unit is primarily funded by grant-in-aid from the Home Office.

As such, the GLAA has been classified to the central government subsector (S.1311) with effect from 30 April 2017, the date on which the GLAA's new powers under the Immigration Act 2016 came into force.

The GLA will be listed on the Public Sector Classification Guide as a former central government body effective from the same date.

Gangmasters Licence Fee

The GLAA operates a licensing scheme to regulate businesses who provide workers to the fresh produce supply chain and horticulture industry.

We have determined that the licence fee is compulsory, as payment must be made to the GLAA to operate as a gangmaster.

The assessment also concluded that the licence fee is requited, being regulatory in nature and set at a level to cover the global cost of providing the service. Further, the assessment concluded that the licence fee is not economically significant, because it does not have a substantial influence on the levels of supply or demand for services.

As such, the licence fee has been classified as a payment for non-market output (P.131) with effect from 1 April 2005, the date on which the licence fee was established by the Gangmasters (Licensing) Act 2004.

Money and Pensions Service

We have carried out a classification assessment of the Money and Pensions Service (MaPS) in the context of internationally-agreed statistical guidance as described in the Introduction.

On 1 January 2019, the three previous providers of government-sponsored financial guidance, namely the Money Advice Service, The Pensions Advisory Service and Pension Wise, merged to form MaPS (briefly known as the Single Financial Guidance Body). MaPS works collaboratively across the UK to ensure that people can access money and pensions guidance and debt advice.

The assessment concluded that MaPS has the requisite autonomy of decision to be an institutional unit and is subject to public sector control, as the founding members of the MaPS Board were appointed by the Secretary of State for Work and Pensions. This included the first Chief Executive Officer and Chief Financial Officer. Subsequent executive board appointments have been made by the MaPS Board with the approval of the Secretary of State for Work and Pensions. MaPS is also a non-market producer, as the unit is primarily funded by grant-in-aid from the Department for Work and Pensions.

As such, MaPS has been classified to the central government subsector (S.1311). This decision takes effect from 1 January 2019, the date from which the staff, property, rights and liabilities of the three previous providers of government-sponsored financial guidance were transferred under the Financial Guidance and Claims Act 2018.

The Money Advice Service and The Pensions Advisory Service will be listed on the Public Sector Classification Guide as former central government bodies, effective from the same date. Pension Wise has not previously been classified.

Electricity Generator Levy

The Electricity Generator Levy (EGL) is a new charge on exceptional receipts generated from the production of wholesale electricity.

The assessment concluded that the EGL is compulsory, as electricity generators that satisfy the EGL threshold within the qualifying period must pay the charge on exceptional receipts. Furthermore, the EGL is unrequited, as those paying the charge do not receive any goods or services in exchange for making payment. The assessment considered whether the EGL should be classified within taxes on production and imports (D.2), but this option was discounted as such taxes are payable irrespective of profits made.

As such, the EGL has been classified as a tax on income (D.51), being a compulsory and unrequited charge on the income of electricity generators. This decision takes effect from 1 January 2023 until 31 March 2028.

Department for Exiting the European Union

The Department for Exiting the European Union (DExEU) is listed on the Public Sector Classification Guide as a former central government body, as DExEU closed on 31 January 2020.