BT adds £6.1 billion to London economy and supports nearly 74,000 jobs, according to independent report
BT Group, its spend with contractors and suppliers, and the spending power of its own employees, are responsible for supporting nearly 74,000 jobs in London, according to an independent report published today.
The Economic Impact of BT Group plc in the UK report, by consultancy firm Hatch, calculates that the communications and technology company generated more than £24 billion in gross value added (GVA) to the UK economy during the last financial year, including £6.1 billion in London alone*.
The report estimates that around 73,600 full-time jobs in London are supported by BT Group through direct, indirect and induced effects. The firm also spent £3.1 billion with suppliers based in the region, including those involved with head office/management consultancy activities, computer programming and consultancy, and other professional, scientific and technical activities.
BT Group has broadband and mobile networks spanning from the Scilly Isles to Shetland, built and maintained by some of the 82,800 direct employees it has in the UK. In London, the firm directly employs 12,000 people, with a further 2,510 employed as contractors.
The company is currently modernising its business, including investing in the UK’s largest workplace consolidation and modernisation programme, as it moves from 300 locations to around 30 as part of its Better Workplace programme. The firm plans to move into a brand-new HQ in London later in 2021 and has also announced plans to open new or refurbish existing locations. New strategic hub locations will open in Bristol, Birmingham and Manchester, providing future-fit workplaces of the future for thousands of colleagues.
Jane Thomas, BT Group regional lead for London, said: “I’m immensely proud of the contribution our colleagues make in supporting the London economy. At an important time for our region, our spending on people, networks and suppliers, provides a vital economic boost. The wider impact of that spending helps to sustain communities and small businesses right across the region.
“In the past year, having good connectivity has become more important than ever as we’ve all had to work, learn, and spend more leisure time online. Despite these challenges, our dedicated and determined colleagues have ensured EE’s 5G network has been extended to cover 125 towns and cities, including London; built out Openreach’s full-fibre networks to reach 4.1 million premises; and EE’s 4G network now reaches 85 per cent of the UK. I know these significant investments will help to underpin the country’s economic recovery post-Covid.”
Employees from across BT Group, which includes Openreach, EE and Plusnet, have played a key role in keeping the country connected during the pandemic. The company has provided critical support to the NHS, SMEs via its Small Business Support Scheme and school children by providing unlimited broadband data, free mobile data and access to learning resources for customers.
BT’s Consumer contact centres now handle 100% of customer calls in the UK. Since customer service for BT, EE and Plusnet customers was brought back to the UK and Ireland last year, more than 34 million calls have been handled.
Eddie Curzon, CBI London and South East director, said: “BT is a major employer in London and has a big impact on the economy and jobs. It is good news to see this significant presence continuing.
“BT Group’s investment in the region not only means a boost to local economies, but also to skills and high-quality jobs, including recruiting apprentices and graduates. BT’s investment in the fastest networks and latest technology is also vital for the country. Being connected is essential for our businesses, for boosting productivity and for improving quality of life in all our communities.”
Tim Fanning, Director at Hatch, said: “Our analysis underlines how vast BT Group’s contribution is to the UK economy as a whole as well as to individual communities in the nations and regions. Its presence across the country generates significant further activity and investment, supporting many thousands of jobs.”
Summary of results for year 2019/20:
• 82,800 employees directly working for BT Group in the UK, and 10,600 contractors (Full Time Equivalent – FTE)
• 300,000 total FTE jobs supported (including indirect and induced effects)
• £3.4 billion total income of BT Group employees (including contractors)
• £10.1 billion spend with suppliers based in the UK
• £24 billion total GVA impact associated with BT Group activities (including indirect and induced effects)
• BT Group directly employed 1 in every 230 employees in the private sector across the UK, and 1 in every 12 in the IT and Communications sector
• BT Group directly created £1 in every £165 of GVA in the UK
• As a result of the full economic impact of BT Group, the firm supported £1 in every £75 of GVA in the UK economy and 1 in every 90 employees working in the UK economy
BT Group is the UK’s leading telecommunications and network provider and a leading provider of global communications services and solutions, serving customers in 180 countries. Its principal activities in the UK include the provision of fixed voice, mobile, broadband and TV (including Sport) and a range of products and services over converged fixed and mobile networks to consumer, business and public sector customers. For its global customers, BT provides managed services, security and network and IT infrastructure services to support their operations all over the world. BT consists of four customer-facing units: Consumer, Enterprise, Global and its wholly-owned subsidiary, Openreach, which provides access network services to over 650 communications provider customers who sell phone, broadband and Ethernet services to homes and businesses across the UK.
For the year ended 31 March 2020, BT Group’s reported revenue was £22,905m with reported profit before taxation of £2,353m.
British Telecommunications plc is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.
For more information, visit www.bt.com/about.