BT Group contributes nearly £2bn to Midlands economy
BT Group is responsible for generating £1 in every £115 produced in the Midlands’ economy, according to an independent report published today.
‘The Economic Impact of BT Group plc in the UK’ report, by Hatch Regeneris, shows that the communications company generated a nearly £2bn (£1,963 million) contribution – expressed as “Gross Value Added” (GVA)* – to the Midlands economy during the 2017/18 financial year.
The report estimates that the equivalent of 24,900 full-time jobs in the Midlands are supported through BT’s direct employment, its spending with contractors and suppliers and the spending of its employees.
BT Group directly employs 11,090 people in the Midlands. It’s estimated that BT Group supports one in every 130 employees working in the Midlands’ private sector, reinforcing its position as one of the region’s leading employers.
The Group also spent nearly £431 million with suppliers based in the Midlands.
Across the UK, BT Group directly employed 94,800 people (FTE) and supported an estimated total of 290,000 full-time jobs. It also generated, in total, almost £23bn (£22.8bn) to the UK economy.
Tim Fanning, Director at Hatch Regeneris, said: “Our analysis underlines how vast BT Group’s contribution is to the UK economy, particularly across the nations and regions.
“BT Group is almost unique in contributing to the economies of virtually every community across the UK, supporting significant levels of GVA spend and employment opportunities per region.”
The report from Hatch Regeneris comes in addition to a recent report by PWC1 which highlighted that BT Group is the 5th highest tax contributor in the UK among FTSE 100 companies, and the highest contributor among non-financial companies. The PWC report also identified BT as the largest capital expenditure investor in the UK.
Giles Ellerton, Regional Director, BT Group, Midlands and East Anglia, said: “Few companies play as important a role in the Midlands as BT Group. Not only does BT connect friends, families and businesses across the UK, but we also put premium fuel in the tank of the nation’s economy. The report shows that BT generates £1 in every £115 of wealth in the Midlands.
“We’re proud to be one of the region’s largest private sector employers and investors. Our investments, including the latest 5G mobile technology through our mobile network EE, will ensure the UK continues to be one of the world’s best-connected economies. Birmingham and Coventry will be one of the first cities to enjoy 5G in the UK in 2019, in the run up to the Commonwealth Games and Capital City of Culture.
“With 11,090 people directly employed in the region, spending their salaries in local businesses, as well as regularly volunteering on activities such as our Barefoot tech literacy programme in schools, our people are at the heart of nearly every community.”
Richard Blackmore, Regional Director for CBI East Midlands, said: “BT is a major employer in the Midlands 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 area not only means a boost to the local economy, but also to skills and high quality jobs, including recruiting apprentices and graduates right across the region.
“BT’s investment in the fastest networks and latest technology is also vital for the region, helping to drive productivity growth for the Midlands Engine. Better fixed and mobile connectivity is essential for our businesses and for improving quality of life in all our communities.”
The report includes the contribution of all parts of BT Group, including Openreach, mobile network provider EE and BT’s Consumer and Enterprise divisions.
The report highlights that, across the Midlands in 2017/18, BT Group:
Directly employed a total of 11,090 people (FTE, including contractors) and supported an estimated 24,900 full-time jobs
Spent £431 million with suppliers based in the Midlands
Generated £1,963 million total GVA impact (including indirect and induced effects)
Supported £1 in every £115 of GVA in the Midlands economy and 1 in every 130 employees working in the region’s private sector.
Across the UK in 2017/18, BT Group:
- Directly employed 94,800 people (FTE) and supported an estimated total of 290,000 full-time jobs
- Employees committed more than 37,000 volunteering days to worthy causes
- Spent £510 million on research and development, making it one of the UK’s top investors in innovation
The full report is available at: www.bt.com/reports
Notes 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.
1 PWC Total Tax Contribution of UK FTSE100 companies 2018. BT is:
5th highest contributor (amongst FTSE100 respondents) of UK taxes (borne and collected) – with the 4 slots above BT occupied by banks (HSBC, Lloyds, Barclays, RBS);
4th highest payer of UK wages and salaries;
2nd highest overall distributor of “value” into the UK, where value is the sum of taxes borne, taxes collected, wages and salaries paid, interest paid, and equity returns (which are available for reinvestment, dividends and pension deficit payments) ;
Highest capex investor.