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Basic prices:

The amount received by the producer for a unit of goods or services minus any taxes payable plus any subsidy receivable on that unit as a consequence of production or sale (i.e. the cost of production including subsidies). As a result the only taxes included in the basic price are taxes on the production process - such as business rates and any vehicle excise duty paid by businesses - which are not specifically levied on the production of a unit of output. Basic prices exclude any transport charges invoiced separately by the producer.

Central Government Final Consumption Expenditure:

This class of expenditure presents public spending on Public Administration (including Defence) and Health services in Scotland. No distinction is made between purchases of these services by the Scottish Government or UK Central Government departments and agencies.

Changes in Inventories:

Inventories consist of finished goods (held by the producer prior to sale), work in progress and products (materials and fuel) acquired from other producers to be used for intermediate consumption or resold without further processing.

Compensation of Employees:

The total remuneration payable by an employer in return for their employees' labour. In addition to wages and salaries, this classification also records payment in kind and employers' contributions to social security funds and privately funded insurance schemes.

Distributors' Trading Margins:

Transportation, storage and distribution do not change the physical appearance or nature of goods but change their time or place. The value added by the distributive industries is calculated as the difference in value of the good when it started and when it finished being held or moved i.e. the actual receipts from sales less the purchase of goods for resale less recurrent losses due to wastage, theft, etc plus net change in distributors' inventories.

Final Consumption:

The expenditure on goods and services that are used for the direct satisfaction of individual needs or the collective needs of members of the community, no further value is added to these goods and services by domestic end consumers.

Financial Intermediation Services Indirectly Measured (FISIM):

The output of many financial intermediation services is paid for not by charges, but by an interest rate differential, i.e. the difference between interest rates offered to borrowers and investors. The value added of these industries is shown including their interest receipts less payments, in effect imputing charges for their services.

Intermediate Consumption:

Purchases made by industry for use in their production processes.

Gross Fixed Capital Formation (GFCF):

Gross Fixed Capital Formation relates principally to investment in tangible fixed assets such as plant and machinery, transport equipment, dwellings and other buildings and structures. However, it also includes investment in intangible fixed assets, improvements to land and also the costs associated with the transfer of assets. The investment relates to assets which are used repeatedly in the production process for more than one year and as such covers such purchases as: software, mineral exploration and purchases of dairy cattle.

Gross Operating Surplus:

This classification is broadly analogous to profit but is more accurately defined as the surplus (or deficit) on production activities before account has been taken of interest, depreciation, rents or charges. This class includes mixed income where, particularly in the case of sole proprietors, separately identifying profits and wages may not be possible.

Household Final Consumption Expenditure:

Household final consumption expenditure represents consumer spending. It includes imputed rent for the provision of owner-occupied housing, income in kind and consumption of own production. Also included is Scottish household expenditure in the rest of the UK and overseas, with spending by non-Scottish households being presented within the relevant tourist expenditure category. The household sector covers not only those living in traditional households, but also those people living in communal establishments, such as retirement homes, boarding houses and prisons.

Local Government Final Consumption:

The Local Government sector in Scotland comprises the 32 Scottish Councils and services run by joint authorities such as the police and fire services. Local Government expenditure covers the provision of Education, Public Administration, Social Work, Public Heath and Recreation services.

NPISH (Non-Profit Institutions Serving Households):

NPISH are organisations that provide goods or services to households either free or at prices that are not economically significant. There are three broad types of NPISH:

  • Academic establishments, principally universities, higher education and further education colleges;
  • Associations which provide benefit primarily for their members and are financed mainly by subscriptions, including professional and learned societies, trade unions, churches and religious societies, housing associations, non-collecting friendly societies, social or recreational organisations and sports clubs. This class excludes those bodies where membership gives a right to a predetermined range of goods or services; for example book clubs and the Automobile Association.
  • Bodies that serve the interests of people other than their members, including charities and similar relief and aid organisations financed by donations from the public, government and business.
Purchasers' Prices:

The prices paid for products at the point of sale, after the addition of any taxes less subsidies on products and after the addition of any other costs such as distributors' trading margins. The Supply Table shows the transition from basic to purchasers' prices.

Taxes less Subsidies on Production:

These are compulsory and unrequited payments levied on the production and importation of goods and services, the employment of labour, the ownership and use of buildings or other assets used in production. They are payable whether or not profits are made. Subsidies on production are defined as payments made to producers with the objective of influencing their level of production, their prices or to assist with purchases of the factors of production.

Taxes less Subsidies on Products:

The main UK taxes on products are value added tax (VAT), and taxes on alcoholic drinks, tobacco, hydrocarbon oil, betting, and stamp duties. Subsidies on products are payable per unit of good or service produced, with the aim of reducing the purchase price to the consumer. The main product subsidies in Scotland, which are paid by the European Union and Central/Local Government, relate to agriculture, transport and housing.


Goods of considerable value that are not used primarily for production or consumption but are held as stores of value over time. They consist of precious metals, precious stones, jewellery, works of art, etc.