Transcript

MILES FLETCHER

Welcome again to Statistically Speaking, the Office for National Statistics podcast. I'm Miles Fletcher and in this episode we're talking about local data for local people - How good statistics for small areas make for better targeted policy interventions, and more effective use of valuable public resources.

We're going to explore, for example, how new data sources are helping to precisely calibrate economic circumstances and local communities. How we may even be able to calculate the GDP of your street or village. Now many economic forces are of course global. Some of the solutions to issues like competitiveness, productivity and inequality might begin on our doorsteps.

As ever, we have the cream of ONS expertise here on hand, this time in the shape of Emma Hickman, Deputy Director of the ONS sub national stats division, and Libby Richards, Deputy Director for UK wide coherence and head of an important new initiative called ONS Local, which we'll be hearing about in full. Also joining us is Stephen Jones, Director of Core Cities UK. Its aim is to promote the role of our great cities in creating a stronger fairer economy and society.

So Emma, to set the scene for us first then please explain precisely if you would, the value of really good local stats.

EMMA HICKMAN
So the needs are multiple, really. I think the most important thing is that we are seeing a huge increase in locally targeted policymaking and that’s at a range of different levels across government. So in central government, we see near the department for levelling up Housing and Communities kind of really wanting to think about how do they target policies that are going to help to level up the country but equally what we're also seeing is an increase in devolution which is giving more power to local areas and local policymakers. And so it's really also important that they have the statistics and the data that they need and the evidence that they need to make really, really good decisions for their local areas. And they can do that in a really powerful way because they also have knowledge of their local areas. And then finally, you know, actually for citizen kind of uses of our data and statistics really one of the inclusive data principles that people are able to see themselves in the data and that they feel that the data and the statistics that we're producing as an office represent them. And so having statistics and data available at really geographies that are very meaningful to people is hugely helpful in making sure that as a country, right across the UK that we are kind of reflective of the experiences of really kind of a wide range of people and you know, local economies and end users and understand kind of how they're experiencing that as well.

MF

I guess one of the fundamental principles here is that it's it's local knowledge. It's all very well and everybody thinks they know that local area, but to understand all local areas, we need comparable statistics and data produced to consistent standards.

EH
Yes, absolutely. And that's, I mean, that's one of the key challenges. I think we'll probably kind of come to talk about a little bit later, but you know, absolutely. And that's really about understanding you know, where are the where are the inequalities within regions, as well as between regions? I think we have a lot of information available about, you know, kind of regions, but actually, we also know that some of the inequalities that people really feel are much greater actually within regions and between them and kind of being able to draw that out of data and statistics in a comparable way I think is really important for helping sort of policymakers and decision makers to understand where best to target resources.

MF
Stephen, from a policy perspective, describe the demand for local data at the moment, what sorts of policy solutions are policy makers coming up with and how are those best informed by really good data?

STEPHEN JONES
I think it covers all branches really of policymaking. I think as Emma was saying, the kind of need for really understanding and having a kind of quantitative basis for what's happening in a place is, is actually absolutely crucial for designing policy, whether that's policy about trying to make the economy grow, whether that's policies aimed at trying to reduce disadvantage and challenge facing individuals, whether that's policy about delivering the most effective and efficient public services in the right places at the right times, all of those things, whether that's done in public or private sector need to be built on a good evidence base, good understanding. I think the other thing I would add to the richness of local data can do you can kind of contextualise and understand, you know, a number on its own doesn't mean a huge amount, but if you know that you are 10% higher or 20% lower than your neighbouring place. Or the city of the same size. It's those kinds of contextual dimensions that really help nuance and finesse your policymaking.

MF
And it does come back to that question of trust in data than to make those comparisons in a really reliable and meaningful way. Which I guess is where the ONS, the Office for National Statistics, where we come in. Now Libby tell us about ONS Local. This is an initiative which is all about making sure that that really high quality data is available for the policy makers

LIBBY RICHARDS
ONS Local is our advisory service that is staffed by ONS analysts who are based in every nation of the UK and every region of England. And the idea is that we are here to help local policy makers, regional observatories, and lots and lots of different users of sub national data to really understand the enormous offer from ONS in terms of local data. Having said that, it's also very much about those working relationships as well. Stephen’s talked a lot about context and understanding the nuances and so understanding the situations and challenges that are happening locally is absolutely key to ONS Local helping local areas understand that context better.

MF
The big ONS surveys of course have long carried, many of them are typically think about the Labour Force Survey over a very long period of time, carried a great wealth and local data that obviously gets lost in the national headlines that these data releases generate. But is it a question of getting better value out of what the ONS is already creating or actually about sourcing new data from different sources?

LR
It's a bit of both, very much, in being able to take people through what we already have when understanding their questions, particularly when multiple local areas are asking the same question that's really maximising what ONS already do. However, Emma's side of the house in particular, less so in the regionally and nationally distributed ONS Local is really about developing those new statistics getting into how do we get down to hyper localised sort of 400 to 1200 household building block data that then allow people to build those areas that means something to them. Emma, I don't know if you want to chip in?

EH
Yeah, very happy to. There's two strands I think to that Miles. I think there's one which is about, you know, how do we make the most of survey data and kind of new administrative data sources together to enable that level of granularity? And then the second part is actually when we talk about administrative data probably, that might not really mean things to lots of people. That's data that is collected for a different purpose, but collected on a on a very, very routine basis. And there are actually a fair number of new sources of that kind of data that we're able to get into the ONS.

MF
That's interesting. Can you give us an example of that?

EH
So, I say relatively new. I mean, I think ONS have had this data for quite some time now. But in order to get the level of granularity that we need on Gross Value Added statistics, for example, which is a measure of productivity, we use HMRC’s VAT data for businesses and then we can link that to kind of our survey data and think about how can we then apportion estimates down to the level of geography that we need, knowing that the survey is the place where we've been able to ask the question that we really want to know the answer to and then we can use the other data to model sort of some of the other granularity that we need. The other thing is we've been really successful and using card payments data throughout the pandemic to inform the government's response. And we've recently successfully acquired a really exciting new data source from Visa, it's aggregated, so there's absolutely no way of identifying people in the data, but they've aggregated it at a really granular level of geography for us. So again, it would be in the region of probably hundreds of households, but actually that's granular enough for us to get some really, really good insights into kind of how you know, consumer spending is kind of playing out in the local economy. And there are all sorts of applications for that, that we're really excited to be to be able to start taking forwards now that we've got that data in the office.

MF
So just with those three very important data sources, suddenly we're creating right down to that very micro level, as you say, 400 to 1200 households really quite a full picture of local economic activity.