Business

Spending review - Resilience rankings explained

The research based on data collated by Experian, a global information services company, shows the "resilience rankings" of English local authority areas - essentially how vulnerable places are to cuts in public spending.

The ranking is influenced by a number of factors - from the number of business professionals to the percentage of greenspace an area has.

Local authority areas are given an overall ranking - from most resilient to least resilient or most vulnerable. They are also given rankings according to Business, Community, People and Place.

A further insight is possible, with rankings for the factors that influence each of these sectors.

It is important to note that this research does not show the local areas which will suffer the greatest amounts of public sector cuts.

Here we explain the sector rankings and categories.

Business

How strong is the local business base? Is it dependent on sectors that have been hit by recession? Does it have a high number of firms proven to adapt to difficult economic conditions? Have many firms gone out of business?

Vulnerable Sectors - sectors particularly vulnerable given the economic climate. These are: engineering and vehicles, construction, metals, minerals and chemicals and other, mainly public, services.

Resilient Sectors - sectors that are faring well despite tough economic times - such as agriculture, forestry and fishing, banking and insurance.

Business start-up - the number of businesses that have started up since 2008.

Insolvency rate - the number of businesses that have gone out of business in the last nine months

Self employed - the % of the working-age population that is self employed.

Community

% vulnerable to declines in disposable income - the proportion of households that are vulnerable to declines in disposable income. This is distinct from a measure of wealth as often households in poorer areas have little disposable income to begin with.

% vulnerable to long term unemployment - the proportion of houses that are vulnerable to long term unemployment

Claimant count - the rate of people claiming benefits, based on May 2010 figures

Social cohesion - this is based on survey information where respondents were asked "Do neighbours look out for each other?"

People

Is there a large working age population that can contribute to the economy? How many people have high skills levels? How many people work as managers and how many people work in elementary roles such as cleaners and refuse workers? How much do locals earn on average?

Working age population - the percentage of the local population that is of working age and therefore able to contribute to the local economy.

Professionals- those working in the following roles or similar - corporate manages, senior officials, production managers, functional managers, office managers, financial managers, managers in agricultural services.

Low-skilled workers - those working in the following roles (or similar - cleaners and helpers, agricultural labourers, other labourers, food preparation assistants, street and related sales and services workers, refuse workers)

Earnings - annual Gross Pay (mean) per annum

Place

Are house prices high? How high is the local crime rate? Is there a lot of green space for people to enjoy?

Crime rates - total number of incidents recorded by police per 10,000 population

House prices - median house price based on land registry data (2010 Q1)

Green space - the proportion of land classified as green space by the department for communities and local government

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