UK wealth creation by large companies jumped 15% on last year, three times as fast as the rest of Europe, according the 2005 Value Added Scoreboard.
The Scoreboard, backed by the DTI, found that the UK has more companies in the top league than any other European country, creates wealth more efficiently and performs well across most sectors analysed.
The analysis indicates that successful and sustained wealth creation results from sustained investment, particularly in areas like skills.
Patricia Hewitt, trade and industry secretary, welcomed the findings and said: “This is an outstanding performance from top UK companies across a wide range of business sectors. Their wealth creation is the firm foundation for our prosperity.
“But we must continue to build on this and not ignore threats from emerging economies. The clear message from UK success is that investment in the future generates sustained wealth creation.”
The fourth annual Scoreboard, which lists the value added, or wealth created, by the top 600 European companies and top 800 UK companies, shows the UK is producing a consistently strong performance against its competitors.
Key findings include:
- The UK has 167 companies in the top 600 across Europe, nearly double its nearest competitor, Germany with 91; the UK companies have a combined value added of £347bn
- Eight of the leading 14 companies from 13 of the larger sectors are from the UK
- The 167 top UK firms’ added value has increased by 15% from last year, compared to the average of 5% in the rest of Europe;
- UK companies create wealth more efficiently, adding more value at lower cost. The UK efficiency rating is 163% compared to 139% for the rest of Europe.