UK SIC: UK Standard Industrial Classification

The UK SIC 2007 took official effect from 1 January 2008. However, the timetable for its implementation shows it was not until September 2011 that full compliance was achieved in statistical releases by the ONS.

Changes between UK SIC 2003 and UK 2007

The UK SIC 2007 was the most significant update of the UK's industrial classification system since 1992. Its release came in the wake of changes in the European Union's NACE (NACE Rev. 2) to which the UK SIC is aligned up to the four-digit level. In UK SIC 2007, the "subsection" category of previous versions was dropped leaving it with five classification levels named sections, divisions, groups, classes and subclasses. The number of subcategories within some of these levels also increased in UK SIC 2007 with 21 sections and 88 divisions compared to 17 sections and 62 divisions in UK SIC 2003. At the more detailed level, the number of classes (four-digit level) increased from 514 to 615 reducing the need for more subclasses (five-digit level), which were scaled down from 285 to 191. At the broadest level, the following sections have been added or reconstituted in UK SIC 2007:

New sections in UK SIC 2007:

• Section E (Water supply; sewerage, waste management and remediation activities) in UK SIC 2007 comprises sanitation, water, and materials recovery activities from divisions 90, 41 and 37 in UK SIC 2003. It also includes recycling from 2003's Section D (Manufacturing).

• Section J (Information and communication) in UK SIC 2007 comprises 26 four-digit level classes related to the production and distribution of information and cultural products, information technology and data processing, and other information services. The main components of this new section originate from four different sections in UK SIC 2003. The rise of information and communications technology (ICT) at the time is well reflected in this section.

• Section L (Real estate activities) in UK SIC 2007 is a result of the split of the UK SIC 2003 section K (Real estate, renting and business activities). The remaining activities from the old section K have been placed under sections M (Professional, scientific and technical activities) and N (Administrative and support service activities) of UK SIC 2007.

• Section R (Arts, entertainment and recreation) in UK SIC 2007 comprises activities from the UK SIC 2003 sections O (Other community, social and personal service activities) and J (Information and communication).

• Section S (Other service activities) is also formed by activities from the UK SIC 2003 sections O (Other community, social and personal service activities), J (Information and communication), and K (Real estate, renting and business activities).

• Sections A (Agriculture, hunting and forestry) and B (Fishing) from 2003 were merged to form section A (Agriculture, forestry and fishing) in UK SIC 2007 which also includes more detail with 39 classes compared to 16 in UK SIC 2003.

The creation of new sections in UK SIC 2007 made up of elements from other sections in the UK SIC 2003 means that sections across both versions are not comparable. That said, the current version is more closely aligned with international classification standards and better reflects the current structure of the UK economy, particularly the growth in service industries and ICT.

Structure of UK SIC 2007

The UK SIC 2007 is a hierarchical five-digit classification system which, based on its current version, is structured as follows:

• Sections: 21 sections each represented by a single letter from A to U. This is the broadest categorization in the UK SIC framework. For example, section K represents "financial and insurance activities".

• Divisions: 88 divisions represented by two-digit codes. For example, code 64 represents "financial service activities, except insurance and pension funding".

• Groups: 272 groups represented by three-digit codes. For example, code 64.1 represents "monetary intermediation".

• Classes: 615 classes represented by four-digit codes. For example, code 64.11 represents "central banking".

• Subclasses: 191 subclasses represented by five-digit codes. For example, code 64.19/1 relates to "banks". These subclasses are what differentiates the UK SIC from NACE Rev. 2.

The table below shows the number of subcategories in each of the 21 sections of the UK SIC 2007. At the class level of the hierarchy, manufacturing has the highest number of industries (230), followed by wholesale and retail and agriculture, forestry and fishing which have 91 and 39 industries respectively.

Resources

• UK SIC 2007 (current) - Codes - Excel

• UK SIC 2007 - Main volume

The UK SIC 2003 was in official effect in the UK from January 2003 to January 2008. It was a minor revision of UK SIC 1992 necessitated by simultaneous changes in international standards with the transition from NACE Rev. 1 to NACE Rev. 1.1 and the demand from users for more subclass-level detail.

Changes between UK SIC 1992 and UK 2003

The changes seen in UK SIC 2003 had mostly to do with the creation of subclasses under classes located across seven broad sections. There was also re-coding and renaming of titles, as follows:

• Section D (Manufacturing): Six new subclasses were added, three each in classes 21.21 (Manufacture of corrugated paper and paperboard and of containers of paper and paperboard) and 21.25 (Manufacture of other articles of paper and paperboard not elsewhere classified). Two subclasses from UK SIC 1992 (29.40/1 and 29.40/9) were recategorized into three classes (29.41, 29.42, and 29.43) in UK SIC 2003. The titles of three classes were also changed from their previous rendition.

• Section E (Electricity, gas and water supply): Two subclasses from UK SIC 1992 (40.10/1 and 40.10/2) were recategorized into three classes (40.11-40.13) in UK SIC 2003. Class 40.20 (Manufacture of gas; distribution of gaseous fuels through mains) from 1992 was split into two classes in 2003: 40.21 (Manufacture of gas) and 40.22 (Distribution and trade of gaseous fuels through mains).

• Section G (Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods): 12 new subclasses were created in UK SIC 2003 from the UK SIC 1992 classes 51.33 (Wholesale of dairy produce, eggs and edible oils and fats), 51.34 (Wholesale of alcoholic and other beverages) and 52.50 (retail of second-hand goods in stores) and from splitting the 1992 subclasses 52.11/9 (retail sale in non-specialized stores with food, beverages or tobacco predominating, not elsewhere classified) and 52.48/9 (Other retail sale in specialized stores not elsewhere classified). A few new classes were also created while others were renumbered or retitled from their expression in UK SIC 1992.

• Section H (Hotels and restaurants): The UK SIC 1992 subclasses 55.11/1 (Hotels and motels, with restaurant (licensed)) and 55.11/2 (Hotels and motels, with restaurant (unlicensed)) were renumbered respectively to 55.10/1 and 55.10/2 in 2003. The UK SIC 1992 class 55.12 (Hotels and motels without restaurant) was made into subclass 55.10/3 with the same title in 2003.

• Section I (Transport, storage and communication): Four new subclasses (63.12/1, 63.12/2, 63.12/3, and 63.12/9) were created in UK SIC 2003 from class 63.12 (Storage and warehousing) of UK SIC 1992.

• Section J (Financial intermediation): Four new subclasses were created in UK SIC 2003 which are 66.01/1 (Life insurance) and 66.01/2 (life re-insurance) from the UK SIC 1992 class 66.01 (life insurance), and 66.03/1 (non-life insurance) and 66.03/2 (non-life re-insurance) from the UK SIC 1992 class 66.03 (non-life insurance). The UK SIC 1992 subclasses 65.23/2 and 65.23/2 were also renamed and/or recoded in UK SIC 2003.

• Section K (Real Estate, renting and business activities): Six new subclasses were created in UK SIC 2003 and some others were renumbered. Subclasses 74.11/2 (Barristers at Law) and 74.11/3 (Solicitors) derive from the UK SIC 1992 subclass 74.11/9 (legal activities not elsewhere classified) while subclasses 74.70/2 to 74.70/5 result from the disaggregation of the UK SIC 1992 subclass 74.70/9 (cleaning activities not elsewhere classified). There were also four new classes in UK SIC 2003 resulting from the split of the UK SIC 1992 classes 72.20 (software consultancy and supply) and 74.83 (Secretarial and translation activities).

• Section O (Other community, social and personal service activities): Three new subclasses were created in UK SIC 2003. Subclasses 92.72/1 (motion picture, television and other theatrical casting) and 92.72/9 (other recreational services not elsewhere classified) originate from the UK SIC 1992 class 92.72 (other recreational activities not elsewhere classified) while the subclass 93.05/1 (operation of coin-operated photographic machines) is due to the relocation of the UK SIC 1992 subclass 74.81/1 with the same title. Five new classes were also created in UK SIC 2003. Three of these come from three UK SIC 1992 subclasses that were renamed and recoded as classes in UK SIC 2003 which are 90.01 (collection and treatment of sewage), 90.02 (collection and treatment of other waste), and 90.03 (sanitation, remediation and similar activities).

Structure of UK SIC 2003

The UK SIC 2003 was a hierarchical five-digit classification system structured as follows:

• Sections: 17 sections each denoted by a single letter from A to Q. This is the broadest categorization in the UK SIC 2003.

• Subsections: Some sections are further divided into subsections denoted by another letter after the section. There are 16 subsections located in only two of the 17 sections of UK SIC 2003: 14 subsections under section D (Manufacturing) and two subsections under section C (Mining and Quarrying). For example, subsection CA represents "Mining and Quarrying of Energy Producing Materials" under section C (Mining and Quarrying).

• Divisions: 62 divisions represented by two-digit codes.

• Groups: 225 groups represented by three-digit codes.

• Classes: 517 classes represented by four-digit codes.

• Subclasses: 285 subclasses represented by five-digit codes.

Resources

• UK SIC 2003 - Manual

UK SIC 1992

The UK SIC 1992, published in September 1992, became effective on January 1, 1993, until its replacement by the UK SIC 2003. The release of UK SIC 1992 followed the emergence of the European Community's NACE Rev. 1 to which the UK SIC is aligned up to the four-digit level.

Changes between UK SIC 1980 and UK SIC 1992

A major change in UK SIC 1992 from UK SIC 1980 is the introduction of a new numbering system to reflect a more detailed and hierarchical structure, aligned with international standards. While UK SIC 1980 used a purely numeric system, where industries were classified using 3-digit or 4-digit numbers, UK SIC 1992 moved to a mixed alphanumeric system. The UK SIC 1992 introduced "Sections" represented by letters (A to Q) as the broadest level, with further breakdowns into divisions, groups, classes, and subclasses that used numeric codes.

Moreover, UK SIC 1992 provided a more granular classification of industries, adding more categories and subsectors, reflecting changes in the economy and the need for more detailed industry reporting. While UK SIC 1992 had five levels, UK SIC 1980 had four levels of which divisions, classes, and groups were retained in UK SIC 1992, while the activity heading level was dropped. With the new structure in UK SIC 1992, many 1980 industries were reclassified or redistributed across sections to better reflect their economic functions or the evolving nature of those industries. UK SIC 1992 notably included new codes for industries such as computer-related services, telecommunications, and biotechnology, which were becoming more important in the UK economy by the early 1990s.

Structure of UK SIC 1992

The UK SIC 1992 was a hierarchical five-digit classification system structured as follows:

• Sections: 17 sections each denoted by a single letter from A to Q. This is the broadest categorization in the UK SIC 1992.

• Subsections: Some sections are further divided into subsections denoted by another letter after the section. There are 16 subsections located in only two of the 17 sections of UK SIC 2003: 14 subsections (DA-DN) under section D (Manufacturing) and two subsections (CA and CB) under section C (Mining and Quarrying).

• Divisions: 60 divisions represented by two-digit codes.

• Groups: 222 groups represented by three-digit codes.

• Classes: 503 classes represented by four-digit codes.

• Subclasses: 142 subclasses represented by five-digit codes.

Resources

• UK SIC 1992 - Manual

The UK SIC 1980 took official effect on 1 January 1982 following its initial release in 1980. This was the third review of the UK SIC since its introduction in 1948. As with other reviews, UK SIC 1980 was released following contemporaneous updates to international classification systems and to reflect the industrial structure of the UK at the time.

Changes between UK SIC 1968 and UK SIC 1980

Both UK SIC 1968 and UK SIC 1980 used a numeric numbering system. However, while UK SIC 1968 was structured into 27 Orders, each divided into "Minimum List Headings" denoted by three-digit numbers, UK SIC 1980 introduced a decimal structure of four levels consisting of divisions at the broadest level followed by classes, groups, and "activity headings". The level of detail increased from 161 "minimum list headings" in 1968 to 334 "activity headings" in UK SIC 1980. Another methodological difference between these two versions had to do with the distinction made between principals and agents. For example, traders buying and selling on behalf of others were grouped separately from those who owned the products they deal in just as insurance companies who bear the risks are grouped separately from insurance brokers or agents.

Structure of UK SIC 1980

The UK SIC 1980 was a hierarchical system structured as follows:

• Divisions: 10 divisions represented by a single digit (0-9).

• Classes: 60 classes represented by two-digit codes (01-99).

• Groups: 222 groups represented by three-digit codes (010-990).

• Activity headings: 335 activity headings represented by four-digit codes (0100-9900).

Resources

• UK SIC 1980 - Manual

The UK SIC 1968, which came into effect on 1 January 1968, was the first major revision of the SIC system used in the UK, aligning with international standards for the classification of industries.

Changes between UK SIC 1948 and UK SIC 1968

UK SIC 1948 and UK SIC 1968 were both structured into broad "Orders" and "Minimum List Headings" (headings). The major difference between both versions was the increase in the size of both classification levels from 24 Orders in UK SIC 1948 to 27 in UK SIC 1968 and from 163 headings in UK SIC 1948 to 181 in UK SIC 1968. New Orders in UK SIC 1968 include IV (Coal and Petroleum Products) and VII (Mechanical Engineering). There were also some changes in the sequencing and constitution of orders. For example, Order XIII (Food, Drink and Tobacco) in UK SIC 1948 became Order III in UK SIC 1968.

Structure of UK SIC 1968

The UK SIC 1968 was a hierarchical classification system structured as follows:

• Orders: 27 orders identified by roman numerals. For example, Order III covers "food, drink and tobacco".

• Minimum List Headings: 181 headings identified by Arabic numerals. For example, heading 211 covers "Grain milling".

In addition to the core structure above, UK SIC 1968 provides for the optional use of eight divisions and 14 groups identified respectively by the first and first two digits of the heading codes.

Resources

• UK SIC 1968 - Manual

The UK SIC 1948 was the first ever UK industrial classification. It was designed to create uniformity and comparability of UK government statistics to facilitate economic analysis after World War II when there was a growing need for standardized data to track and understand industrial development. In the course of its preparation, the classifications used in earlier UK censuses of population and production as well as the UN's newly initiated ISIC were taken into account. The UK SIC 1948 was developed according to certain general principles centered around three points. First, the classification is by industries (regardless of the ownership), not occupations. Second, the unit of classification is the establishment according to its main products. Third, establishments engaged in trading, importing, and exporting are grouped under the distributive trades and not the industry of the products they deal in.

Structure of UK SIC 1948

The UK SIC 1948 was a hierarchical classification system structured as follows:

• Orders: 24 Orders identified by Roman numerals. For example, Order I stood for "Agriculture, Forestry, Fishing".

• Minimum List Headings: 163 headings identified by Arabic numerals. For example, heading 1 covered "Agriculture and Horticulture".

In addition to the core structure above, UK SIC 1948 also provided optional sub-divisions applicable where a more detailed classification is required.

Resources

• UK SIC 1948 - Manual

The current version of the UK SIC is 16 years old and widely thought to be outdated. Since its release in 2007 several new industries have emerged in the UK. To name a few, there have been innovations in financial technology such as digital payments, blockchain, and peer-to-peer lending. The rise of data science has also led to new activities in big data analytics, artificial intelligence, and machine learning. Moreover, while the drive towards net-zero emissions has spurred growth in the low-carbon and renewable energy sectors in the UK, the current UK SIC has no codes for the increasing range of activities in that sector. The COVID-19 pandemic also brought about a range of pandemic-related activities possibly requiring new or updated classifications to accurately measure and report economic activities related to the pandemic response.

In light of the evolution of the UK economy and the recent updates to international classification systems to which the UK SIC has historically been aligned, a new version of the UK SIC is likely to be published soon. No release date has been publicly announced by the ONS, but as major changes in the industrial classification tend to be made every 10-15 years, a new UK SIC could be imminent. The ONS has been involved in the process leading to the recent updates of the UN's ISIC (to the current ISIC Rev. 5) as detailed in its submissions to the global consultation process between 2019 and 2023. They were also part of a Task Force established by Eurostat to support the review of NACE (to the current NACE Rev. 2.1).

Following these major updates in international standards, the ONS has held a consultation process to understand the potential impact of a review on UK SIC users. The consultation, conducted between October 2023 and January 2024, received responses from a diverse set of internal and external stakeholders with varying user requirements and the ONS has proceeded to submit a proposal to the National Statistician’s Committee for Advice on Standards for Economic Statistics (NSCASE). According to the proposal, finance services and wholesale and retail of motor vehicles are examples of areas needing more sub-category classification. While identifying other options for what form the new UK SIC should take, the ONS has stated a preference for keeping NACE as the base structure with more tailored classifications where necessary based on either NACE or ISIC. This would ensure that UK SIC continues to satisfy basic principles of economic measurement in terms of revealing the country's unique industrial structure while being internationally comparable.

In addition to changes in international standards, the exit of the UK from the EU (Brexit) is one of the major developments since the release of the current UK SIC 2007. The UK is therefore no longer obliged to follow the European statistical system, and this could potentially affect the outcome of the next UK SIC. Following Brexit, the ONS might have even more flexibility in defining the national system (especially at the sub-class level) to better reflect domestic priorities and regulations.