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Economic Policy EC1

Proposals that provide economic productivity benefits which are additional to Gross Value Added (GVA) currently generated by existing activities should be supported.

Policy Considerations

  1. Gross Value Added (GVA) measures how an industry, sector or people contributes to the economy. Regional GVA is measured using the income approach. See Office of National Statistics for more information on GVA.
  2. Local council websites often have useful economic information, or links to local research and information providers. Planning web pages can be good place to start, and local planning documents often include economic analysis to support their plans.
  3. A proposal might not generate a lot of GVA directly, but it might enable GVA to be generated through linked activities, like providing resources to be used throughout a supply chain. A description of this could be included in a proposal, to help demonstrate its full economic benefit.
  4. 'Additionality' is a concept that aims to look at what a project can provide over and above what is likely to happen anyway. For a potential approach on how to estimate GVA place see the information from Scottish Enterprise (PDF 816.4KB).
  5. This policy should be applied proportionately, so the amount of time spent estimating and the accuracy of estimates of GVA and additionallity should reflect the size and complexity of the proposal. In practice this means that these estimates may only be possible or appropriate or possible and appropriate for proposals with significant levels of employment, or expected income or expenditure.