BT gives UK economy an £18 billion pound boost
Communications company responsible for £1 in every £80 produced in the UK BT’s impact on employment in some regions is bigger than whole industries, such as motor vehicle manufacturing and civil engineering
BT is responsible for generating £1 in every £80 produced in the UK, according to an independent report published today.
The report, by Regeneris Consulting, shows that the communications company spent £6.5 billion with UK suppliers during the 2014/15 financial year and gave an £18 billion boost to the country’s economy.
It estimates that the equivalent of 217,000 full-time UK jobs are supported through BT’s direct employment, its spending with contractors and suppliers and the spending of employees.
The overall beneficial financial impact of BT activities is expressed as a “Gross Value Added” (GVA)* contribution. Nearly half of the £18 billion comes from the direct employment of 72,200 people and a further 10,900 as contractors.
Tim Fanning, associate director at Regeneris Consulting, said: “Our analysis confirms the sheer scale and reach of BT’s ongoing economic contribution to this country.
“BT makes a contribution to every community across the UK. In the UK, £1 in every £80 of wealth created is attributable to BT – this is one of the single largest contributions to the UK economy by any firm.”
Brendan Dick, managing director of BT Regions, said: “There are few organisations that have a larger impact on the day-to-day life and future prospects of the UK than BT.
“We are one of the country’s largest private sector employers and investors – our investment in fibre broadband alone amounts to more than £3 billion - and the services that we provide are a vital part of every community.
“The facts and figures shown in this report highlight the full extent of BT’s contribution to the economy as we go about the daily business of keeping people connected and introducing new technologies, which are creating fresh opportunities and transforming lives.
“Aside from the company’s activities, the report also draws attention to the positive ways BT people are contributing to the communities where they live and work, whether they are a volunteer for a worthy cause or a local shopper.”
‘Social Study 2015 – The Economic Impact of BT in the United Kingdom’ analyses the key role BT and its employees play in economic, business and community life across the English regions, Scotland, Wales and Northern Ireland.
It highlights the positive contributions made by BT through the salaries and wages of employees and contractors, and the beneficial impact of its procurement and overall expenditure around the UK.
The report highlights:
- That BT employs 72,200 people in the UK and 10,900 contractors with a total employment income of £2.9 billion;
- That BT provides work for a further 134,100 through BT’s spending with businesses that supply its equipment and services, and the spending of employees;
- That BT people committed more than 50,500 volunteering days to worthy causes during 2014/15 - worth more than £15 million;
- That BT has enabled more than three-quarters - 77 per cent - of its employees to work flexibly.
BT’s total employment impact in London, Scotland, Northern Ireland and the South East is bigger than the whole of the insurance sector in those regions and countries; bigger in the West Midlands, North East and Yorkshire/Humber than the whole of their civil engineering sectors; bigger in the North West than the whole of the region’s motor vehicle manufacturing sector; bigger in the East Midlands and the South West than the whole of their research and development sectors; bigger in the East of England than the whole of the region’s food manufacturing sector; and bigger in Wales than the whole of the Welsh creative and media sector.
The report also highlights how, in addition to its multi billion pound roll-out of fibre broadband, BT is consistently one of the country’s leading investors in innovation with spending on research and development in the 2014/15 financial year reaching £502 million.
Among the latest developments, the company has started trials of ultrafast G.fast broadband, which is already delivering download speeds up to 330 megabits per second (Mbps). This new technology will be rolled out to 10 million UK homes and businesses by the end of 2020 and the majority of premises within a decade.
The full report is available at: www.bt.com/reports
Note to Editors
*Gross Value Added (GVA) measures the value of all goods and services produced in an economy. GVA combines wages and operating profits from companies and other organisations. Growing GVA can reflect improvements in workforce skills, productivity, R&D and innovation. The figures for BT show the value added directly through BT's services and additional value generated through BT's suppliers across the nations and regions.
The Economic Impact of BT per Region or Country 2014/15:
|Region or Country||Total GVA £m||BT Employees and Contractors Working in Region or Country|
|East of England||2,300||10,400|
|Yorkshire and the Humber||1,130||6,580|