BT’s £942 million boost for Scottish economy

Communications company responsible for nearly 12,000 jobs across Scotland 
Spends around £124 million a year with local suppliers 

BT generated a massive £942 million for the Scottish economy in the past year, according to an independent report published today. 

The report, by Regeneris Consulting, also shows that the communications company supports nearly 12,000 jobs in Scotland through direct employment, its spending with contractors and suppliers and the spending of employees. 

In employment terms, BT’s impact in 2012/13 was larger than the nation’s petroleum and natural gas extraction sector. More than £124 million was spent with suppliers based in Scotland. 
The overall beneficial financial impact of BT activities is expressed as a “Gross Value Added” (GVA)* contribution. For Scotland, the BT GVA totalled £942 million – equivalent to £1 in every £110 of the nation’s total GVA. 

Brendan Dick, director, BT Scotland, said: “BT and its employees make a major contribution to the Scottish economy. They are a key part of its prosperity and economic well-being. BT is at the centre of every community and our day-to-day work benefits every local authority area right across the UK. 

“I’m also well aware that BT people throughout Scotland really want to contribute in a positive way to the communities in which they live and work. Every day BT employees help millions of people to communicate, do business, be entertained and stay informed. 

“But BT’s role in Scotland is more significant than even these massive figures suggest. In addition to the activities analysed in this comprehensive report, we are creating a high-speed fibre broadband network which will be essential to the future success of local businesses and households. The potential benefits to the region offered by that network are huge by any standards.” 
“Social Study 2013 – The Economic Impact of BT in the United Kingdom” analyses the key role BT people 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 in Scotland – 

  • Is responsible for the employment of 7,000 people – 6,240 direct employees and 760 contractors – with a total employment income of £233 million
  • Provides work for a further 4,800 people through BT’s spending with businesses that supply its equipment and services, and the spending of employees
  • Committed more than £2.27 million to community, charity and voluntary programmes, spread around every Scottish community in 2012/13
  • Has enabled more than 75 per cent of its employees to work flexibly, with 411 homeworkers – 6 per cent of the direct workforce.

BT is investing £2.5 billion in its commercial fibre broadband roll-out in the UK, and is working in project partnerships with governments, regional and local authorities to extend next generation broadband even more widely – especially to more rural and remote communities. 

BT is bringing fibre broadband to 175 exchanges serving more than 1.4m homes and business in Scotland as part of its £2.5bn UK-wide commercial roll-out. It’s also working with two partnerships covering the Highlands and Islands and the Rest of Scotland to bring high-speed broadband to the more remote communities, towns and villages. 

Volunteering is also a core element of BT’s strategy to be a responsible and sustainable business leader. Every BT employee is entitled to three fully paid days each year to volunteer for their chosen cause. In 2012/13 BT people volunteering in the community provided more than £13m of in-kind support and assistance, some 43,600 days. In Scotland, employees contributed 2,340 days, some 16,848 hours during the year. 

UK-wide, BT’s total GVA contribution is assessed at £18.5 billion. It supports 231,510 jobs directly and indirectly and last year spent £7.2 billion with UK-based suppliers. As a result of the full economic impact of BT, the firm supports £1 in every £70 of GVA in the UK economy and one in every 100 employees working in the UK economy. 

Stephen Nicol, Managing Director of Regeneris Consulting, commented: “Our analysis confirms the sheer scale and reach of BT’s economic contribution to the UK and its constituent local economies. BT makes a contribution to every town or city across the UK. At the UK level £1 in every £70 of wealth created is attributable to BT: this is one of the single most important contributions to the UK economy by any firm.” 

The full report is available at –http://www.btplc.com/Thegroup/BTUKandWorldwide/BTRegions/England/Factsandfigures/Factsandfigures.htm 

*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. 

About Regeneris 
Regeneris Consulting is an independent economics consultancy that provides research-based advice to major corporates, developers, national government bodies and local government. Regeneris specialises in preparing robust assessments of economic impact, focusing on the impact of large corporates, new technology, capital investments, and policy changes. Regeneris works across the UK and internationally from its offices in London and Manchester. 

See: www.regeneris.co.uk for further information.