National Statistician’s Committee for Advice on Standards for Economic Statistics minutes: 7 July 2026

Committee

• Martin Weale (chair)
• Rebecca Riley
• Nick Vaughan
• Oliver de Groot
• Paul Schreyer
• Tom Orford (online)
• James Ebdon (online)

Other attendees

• Neil Wilson (ONS)
• Katherine Mills (ONS)
• Sanjiv Mahajan (ONS)
• Gabe Kite (ONS, online)
• Simon Jones (NSO, online)
• Richard Heys (ONS)

Secretariat

• Rebecca McAlpine
• Laura Watson-Heard
• Kath Leonard

Aplogies

• Johnathan Portes
• Jonathan Haskel
• Pat O’Connor

1. Approval of minutes from previous meeting

1. Martin Weale took the committee through this section. The minutes of January 2026 were agreed, and the chair confirmed there had been no approaches to the Committee and no new declarations of interest were made.

2. Nomination of a Deputy Chair

1. Martin Weale confirmed six Committee members had responded to the consultation on the appointment of a Deputy Chair and all had approved the nomination of Paul Schreyer. The Committee formally noted the appointment.

3. Decisions, updates and action log

1. Martin Weale reviewed outstanding actions, update requests and decisions from the January 2026 meeting. ONS confirmed that the recommendation to adopt a UK deviation from the four-digit industry classification rule had been approved by the National Statistician’s ad hoc panel by correspondence.
2. Rebecca Riley sought clarification on NSCASE’s previous recommendation to move to a five-digit classification where international comparability could still be maintained through aggregation. ONS agreed to provide an update on how internationally comparable data would be provided.
3. The Committee reviewed the outstanding decision on factoryless goods production and heard that the current ONS approach aligns with 2025 System of National Accounts (SNA) and the seventh edition of the Balance of Payments Manual (BPM7). As no deviation from international standards is proposed, National Statistician approval is not required. The issue will be removed from the decisions log.
4. Members reviewed progress on January actions. Implementation-related issues had been removed from the log. The revised Terms of Reference (ToR) and decision-making process were discussed, including wording on publication of reasons when NSCASE recommendations are not accepted. The Committee agreed the wording should remain and requested the accompanying flow diagram be aligned with the final ToR. It was agreed finalising the ToR would be done by correspondence.
5. The Committee discussed the introduction of confidentiality undertakings (CU) and stressed the importance of implementing them before the next meeting to support sharing of UN Statistical Commission (UNSC) briefing material. Access to previous UNSC briefings had not been possible due to time constraints, but future sharing should be enabled once the new arrangements are in place.
6. It was noted that no implementation issues from other committees had been brought back to NSCASE.
7. On contingent liabilities, an outstanding action in the action log, Richard Heys advised that discussion would resume once updates to the International Monetary Fund (IMF) Government Finance Statistics Manual had progressed further.
8. The Committee noted that updates requested in January on the SNA research agenda, emissions permits, well-being measures and System of Environmental-Economic Accounting (SEEA) would be covered elsewhere on the agenda. Members also discussed the treatment of the atmosphere within environmental-economic accounting, which is an issue that is due to return to NSCASE at some point. Richard Heys noted this remains an active area of international debate and part of the research agenda. Sanjiv Mahajan and Paul Schreyer highlighted both the policy relevance and communication challenges of explaining why the atmosphere is not currently treated as an asset, despite increasing analytical work valuing its depletion and sequestration capacity. Sanjiv Mahajan noted that this issue is on the SNA research agenda.

Actions:

• Remove factoryless production from the National Statisticians decisions table.
• ONS to provide a response on how internationally comparable series would be made available following implementation of the five-digit classification approach.
• Amendments to the Terms of Reference to be made and finalised by correspondence.
• Secretariat to ensure CUs completed well in advance of next meeting.
• ONS to discuss arrangements with James Benford to enable sharing of appropriate UNSC briefing material with the Committee ahead of future commissions.
• ONS to review whether contingent liabilities or the treatment of the atmosphere as an asset once related work is complete.

4. SNA/BPM7 Progress Update

1. Sanjiv Mahajan updated the Committee on progress following endorsement of SNA 2025 and BPM7. International activity has now moved into implementation, supported by guidance, training and methodological development. Implementation is expected between 2028 and 2035, with the EU targeting 2030. Related work is also progressing on SEEA, Classification of the Functions of Government (COFOG), the IMF Community Hub and the ongoing SNA/BPM research agenda.
2. Members heard that an international review of the SNA update process is gathering feedback on governance, consultation and lessons for future revisions. Methodological work continues on returns to capital for non-market output, data as an asset, crypto-assets, marketing assets and trade valuation. Particular concerns remain around valuing data assets and the use of modelling approaches.
3. The Committee noted extensive support activity from Eurostat, Organisation for Economic Co-operation and Development (OECD) and IMF to encourage consistent implementation. Guidance on data as an asset has been completed, consultation is underway on crypto-assets and guidance on returns to capital for non-market output is close to finalisation.
4. Members discussed the proposal to recognise a return to capital for non-market output. Nick Vaughan raised conceptual and practical concerns, arguing government does not generate operating surplus in the same way as market producers. Paul Schreyer supported the principle but highlighted major challenges around land valuation. Members agreed that treatment of land remains a significant implementation issue.
5. The Committee also discussed difficulties in valuing data as an asset, with concerns that labour cost-based methodologies may become increasingly problematic in an AI-driven economy.

Action:

Sanjiv Mahajan to share the published response to the international review of the SNA update process with the Committee when available.

5. Public Sector Quality Adjustments

1. Richard Heys updated the Committee on progress implementing recommendations from the post-COVID review of public service productivity measurement. Around 30% of recommendations have now been delivered, with improvements including new quality adjustments for tax administration and better measurement of policing, immigration and social security administration. More than 60% of public service productivity is now measured using quantity outputs, and over half incorporates quality adjustments.
2. The Committee heard that quality adjustments and direct output measures have had a positive impact on productivity estimates and that ONS aims to extend coverage across the remaining areas of government activity. Full implementation is currently targeted around 2030 and will be coordinated with wider National Accounts changes, including any future treatment of returns to capital for non-market output.
3. Members discussed international developments. ONS noted growing interest from other countries in the UK approach, although Eurostat does not currently apply quality adjustments. Some countries, including France, have shown interest, and Paul Schreyer suggested education may be a likely area for future European adoption.
4. The Committee also discussed methodological challenges. Paul Schreyer noted that where explicit quality adjustment is difficult, greater stratification of activities can help capture quality differences and improve measurement beyond simple volume indicators.
5. There were no actions or further updates required.

6. Treatment of Emissions Permits

1. Katherine Mills presented a final advice paper on the treatment of emissions permits in the UK National Accounts and public sector finance statistics. The paper returned to NSCASE because ONS had reconsidered its previous position following international developments.
2. ONS now proposes adopting the 2025 SNA treatment, which records emissions permits as financial assets and taxes on production. Although the UK had previously supported an alternative approach, ONS concluded there was insufficient evidence to justify a deviation from the agreed international standard. The proposed treatment is also consistent with emerging IMF Government Finance Statistics guidance and has support from stakeholders across national accounts, environmental statistics, productivity statistics and HM Treasury.
3. The Committee heard that Emissions Trading Scheme auction revenues were around £2.1 billion in the latest financial year, and the change is expected to have only a limited impact on headline UK statistics.
4. Members discussed methodological issues, including the timing of emissions permit use, accruals methods and the availability of better data on permit trading, holding and surrender. ONS plans to continue reviewing the methodology and may return to NSCASE if significant changes are proposed. The Committee also considered international differences in data availability and the potential for future divergence between European and wider international statistical guidance.

Decision:

The Committee endorsed the proposal that the UK should adopt the 2025 SNA treatment for emissions permits in the National Accounts and public sector finance statistics.

7. Review of the Classification of the Functions of Government (COFOG)

1. Gabe Kite updated the Committee on the UN-led review of COFOG, the classification used to categorise government expenditure by function. This is the first major review since 1999 and aims to ensure the framework better reflects modern government spending patterns, emerging policy priorities and user needs.
2. The Committee heard that international consultation has highlighted tensions between conceptual consistency, operational practicality and maintaining international comparability. Key issues include whether expenditure should continue to be allocated to a single primary function or whether some spending should be split across multiple functions. Stakeholders have also called for greater detail in areas such as environmental and climate-related expenditure, while recognising the risks to historical comparability.
3. Gabe Kite noted that the review is being undertaken through five international working groups, with consultations continuing through 2026-27. A global consultation is planned for 2027, with NSCASE expected to consider the UK’s position in 2028 before final proposals are submitted to the UN Statistical Commission.
4. Discussion focused on the growing pressure to update classifications in response to changing policy priorities, particularly environmental issues. Richard Heys highlighted forestry as an example where spending can simultaneously support economic and environmental objectives, illustrating the challenges of assigning expenditure to a single function.
5. The Committee also considered links between COFOG and other statistical frameworks, including industrial classifications and Government Finance Statistics. Members discussed whether COFOG could have wider application across the public sector, including public corporations, and noted that future international guidance may provide further clarity.

Update:

Gabe Kite to provide further updates to NSCASE as proposals emerge.

8. Review of the System of Environmental-Economic Accounting Central Framework (SEEA-CF)

1. Neil Wilson updated the Committee on the ongoing review of the SEEA Central Framework (SEEA-CF), which measures interactions between the economy and the environment. The review aims to align the framework with evolving environmental priorities and recent developments such as SNA 2025, while preparing for future NSCASE engagement.
2. The Committee heard that the UK is playing a leading role internationally and is actively involved in governance and review groups. ONS is coordinating the UK response across government and the devolved administrations and has broadly supported the proposed direction of travel, while providing feedback on practical implementation and consistency with other statistical frameworks.
3. Members noted that the review has identified 29 issues for consideration. Many relate to clarifications and increased detail, but some could represent more significant developments. Key topics include whether the atmosphere should be treated as an asset, the recording of climate change mitigation and adaptation expenditure, treatment of water resources and forestry, and recognition of activities with secondary environmental purposes.
4. The Committee discussed the significance of the atmosphere asset proposal and wider valuation challenges. Neil Wilson noted that some changes could substantially expand the scope of environmental accounting. Nick Vaughan highlighted the atmosphere issue as one of the most consequential proposals, while Sanjiv Mahajan suggested it may be better addressed through environmental satellite accounts rather than the core SNA framework. Members also discussed the role of shadow prices versus market prices and stressed the importance of maintaining alignment with wider statistical standards.
5. The Committee heard that revised chapters are expected during 2026-27, with final approval currently targeted for 2028. A clearer picture of the likely changes is expected to emerge during 2027.

Update:

Neil Wilson to bring further updates to NSCASE as the review progresses.

9. United Nations Statistical Commission (UNSC) Update

1. Simon Jones updated the Committee on outcomes from the 57th UN Statistical Commission. While there were relatively few major formal decisions, the UK played an active role in international discussions on topics including data as an asset, AI, large case units and implementation of international statistical standards.
2. A key development was the Commission’s agreement to begin work on an international socio-demographic statistical framework, intended to provide a coherent structure for social and demographic statistics in a similar way to the SNA and SEEA frameworks. Members welcomed the initiative but noted the challenge of creating a framework broad enough to cover diverse social topics while remaining practical.
3. The Committee heard that AI and statistical modernisation were major themes of discussion. International work is focusing on the use of AI in statistical production, improving machine readability of official statistics and measuring AI’s economic impact. Members discussed wider challenges for economic statistics, including productivity measurement, valuation of software and AI-related assets, quality adjustment and the treatment of free digital services. Paul Schreyer encouraged the UK to play a leading role in developing approaches to AI measurement, while James Benford noted opportunities through the UK’s G20 Presidency.
4. Simon Jones also reported on developments relating to the SNA review process, the SEEA-CF review, data governance, geospatial statistics and international trade statistics guidance. Richard Heys highlighted positive feedback on the SNA update process, particularly the longer consultation period and greater use of testing and piloting, with some countries favouring smaller, more frequent future updates.
5. The Committee discussed the increasing importance of data governance as statistical organisations make greater use of administrative, private-sector and other non-traditional data sources. Looking ahead, future UNSC agendas are expected to include AI, SEEA, COFOG, Beyond GDP, the SNA review process and broader issues arising from the changing data landscape.
6. Simon Jones noted that the next UNSC meeting will take place in February 2027, covering a substantially fuller selection of topics and discussions.

Action:

• ONS (author tbc) to bring a future paper to NSCASE on developments in the measurement of artificial intelligence and its implications for economic statistics.
• The committee to be given opportunity to provide views on the ONS’ response to the 58th UNSC topics prior to the UNSC meeting.

10. ONS and the International Beyond GDP Landscape

1. Richard Heys updated the Committee on international developments relating to Beyond GDP, particularly the work of the UN High-Level Expert Group (HLEG). The Committee heard that while GDP remains an essential measure of economic activity and available resources, it does not capture wider aspects of societal progress, well-being or sustainability. The HLEG has therefore proposed a framework combining economic, social and environmental indicators with measures of human, natural, social and institutional capital.
2. Richard Heys noted that the UK is already well advanced in this area through its national well-being framework, inclusive income statistics, local well-being measures and use of Wellbeing-Adjusted Life Years (WELLBYs) in appraisal. The proposed HLEG approach would complement rather than replace GDP and is expected to receive broad international support.
3. The discussion focused on how Beyond GDP measures can be most useful. Members debated the relative merits of large dashboards versus a smaller set of headline indicators. While dashboards can provide a comprehensive picture, several members argued that a limited number of high-profile indicators would be more effective for communication and decision-making.
4. The Committee also considered links between Beyond GDP, SEEA and the proposed socio-demographic framework, with Richard Heys describing the Beyond GDP dashboard as the “apex of a pyramid” drawing on a broad suite of economic, environmental and social statistics. Members stressed the importance of regional granularity, distributional measures and ensuring outputs remain meaningful to users.
5. Discussion covered alternative approaches, including capital-based frameworks, health-adjusted life expectancy, inclusive income measures and composite indicators. Members noted ongoing international work on indicator construction and weighting but expressed caution about the complexity and communication challenges associated with composite measures.
6. Overall, the Committee agreed that future UK developments should focus on refining existing approaches, improving communication, and balancing comprehensiveness with simplicity. Laura Watson-Heard noted that ONS plans to establish a technical expert group to review consultation feedback and related issues before bringing forward further proposals.

Update:

Richard Heys to bring updates on ONS’ proposed approach back to NSCASE when available.

11. Any other business

1. Forward work plan for February 2027: Members discussed several potential agenda items for the next meeting, including a paper on negative Financial Intermediation Services Indirectly Measured (FISIM), which is expected to return via Advisory Panel on National Accounts (ApoNA), discussion of topics ahead of 58th UNSC, reviews of the GFSM and a further discussion on Beyond GDP. Richard Heys also noted the forthcoming update to the OECD Productivity Handbook and thought an update on this and how they calculate productivity measures maybe useful.
2. Next meeting provisional date 9th of February 2027.