BT Group, its spend with contractors and suppliers, and the spending power of its employees, are responsible for supporting nearly 10,000 jobs in the East Midlands, 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 £759 million in the East Midlands alone*. 

The report estimates that around 9,800 full-time jobs in the East Midlands are supported by BT Group through direct, indirect and induced effects. The firm also spent £130 million with suppliers based in the East Midlands, including those in the construction and telecommunications industries as well as those involved in film, video, music and broadcasting 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 the East Midlands, the firm directly employs 3,750 people, with a further 738 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 regional hub at Three Snowhill, Birmingham, this year, and plans to open a new HQ in London later in 2021. New strategic hub locations will open in places such as Bristol and Manchester, providing future-fit workplaces of the future for thousands of colleagues. 

Wendy Sycamore, BT Group regional lead for the Midlands, said: “I’m immensely proud of the contribution our colleagues make in supporting the East Midlands 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 Midlands.  

“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 Nottingham, Leicester and Northampton in the East Midlands, built out Openreach’s full-fibre network 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, at centres from Leicester to Lincoln. 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. 

Richard Blackmore, CBI East Midlands Director, 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 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 

The Coventry-born executive started her career at BT selling analogue mobile to small and medium sized businesses and has worked in a variety of roles during her 22 years with the firm. She will lead BT’s Enterprise unit’s relationships with its business and public sector customers across both regions.

Sarah, who is based in Wirral, has started her new role during a particularly challenging time for the regions, and the entire UK, due to the Covid-19 pandemic.

“We know how tough it has been for our customers, including some who have had to temporarily cease trading and others who are adapting to finding new ways of working,” said Sarah.

“The shutdown of normal activity is having a huge impact on businesses, particularly in the hospitality, leisure, entertainment, travel and education industries. As a critical enabler, we are doing all we can to support our partners in both the public and private sectors.

“We are helping a number of NHS bodies through our Smart Messaging platform to relay COVID-19 related patient communications and appointment reminders, as well as being a key partner for Nightingale hospitals in Birmingham and the North of England, and the invaluable LifeLines – a project providing a secure virtual visiting solution for families whose loved ones are in intensive care units.

“We’re also supporting businesses from sole traders and SMEs, all the way through to large corporates by giving them access to the best technology, flexible options and training to help them navigate through this crisis.”

Sarah’s most recent role was leading the major corporate section within BT Enterprise’s Major & Public Sector division, where she was responsible for managing projects including BT’s strategy to improve passenger connectivity across the UK Rail Network.

BT has invested significantly in the Midlands and North of England with the recent announcement of future workplaces in Birmingham, Manchester and Doncaster and 5G mobile services launching in a number of cities and towns in the Midlands including Wolverhampton, Coventry, Nottingham and Leicester, as well as places such as Newcastle, Sunderland, Leeds and Liverpool in the North of England. BT also recently launched a £20.3 million partnership with Leeds City Council which will make Leeds the largest gigabit and ‘5G capable’ city outside of London.

Sarah said the focus now was to help businesses survive the economic impact of the coronavirus situation, but in the longer term she wanted BT to play a key role in both regions’ future prosperity.

She said: “BT’s values align with the strategic plan for the Midlands and the North of England; with a focus on skills, technology and transport within these regions, we have a great opportunity to support the social and economic growth objectives, bringing our public and private sectors closer than ever using the power of technology to enrich the industries and communities that we serve.”

Sarah added that new research from BT Skills for Tomorrow and Small Business Britain has found that small enterprises across the Midlands and North of England are moving more of their services online for survival as the sector looks to take its first steps towards recovery.

The research – which polled over 1,000 firms in Small Business Britain’s UK community - found many across the sector are actively embracing digital tools to power recovery. Out of the small businesses surveyed, two fifths (42 per cent) have moved online due to the pandemic; over a third (37 per cent) are planning for less face to face contact in the future; and a similar number (39 per cent) now view digital skills and tools as a key focus area.

Sarah said: “The right online presence could make a huge difference to a small business, such as helping them to reach a global audience or a new customer base. It’s important that we continue to support small businesses to develop and enhance their digital skills, so they are in the best position for recovery.

BT is also supporting the growth of its mid-market and larger corporate customers in both regions by helping them to accelerate the adoption of digital technologies such as full fibre, 5G, cloud services and Internet of Things (IoT) solutions. These technologies are fueling customers’ digital transformation and will help to boost the performance of their business by making them faster, smarter and more agile.

Welcoming Sarah’s appointment, Dean Terry, MD corporate and public sector of BT’s Enterprise unit, said: “I look forward to working with Sarah in her new role. Her experience of working in senior sales positions within BT and her understanding of the business needs of our corporate and public sector partners in the Midlands and North of England will be a huge asset in her new role.”

More than 3,600 traditional red boxes are available for adoption across England and BT will also consider adoption requests to house defibrillators in more modern boxes. BT is encouraging community groups to seize the opportunity to do something wonderful with phone boxes that have little or no usage. Already, more than 5,800 payphones have been adopted by communities since 2008.

BT will continue to provide electricity (if already in place) to power the light for adopted kiosks, free of charge to communities. Where electricity is available, adopted boxes can be used as housings for defibrillators – an increasingly popular and potentially life-saving conversion. Other exciting new ventures include conversions to mini-libraries, miniature art museums, cake shops and information centres. One payphone in Devon was even turned into the “world’s smallest nightclub.”

Commenting on the launch, Katherine Bradley, BT’s Senior Payphones Commercial and Operations Manager, said: “We’re pleased to be giving even more local communities the chance to adopt a phone box. With more than 5,800 payphones now adopted across the UK, this is a fantastic opportunity for communities to own a piece of history.

“The opportunities are endless and we’ve already seen some amazing transformations. Applying is easy and quick and we’re always happy to speak to communities about adopting our traditional BT red payphone boxes.”

Communities can adopt a kiosk if they are a recognised public body, such as a parish council, community council town council or parish meeting. Boxes can also be adopted by registered charities or by individuals who have a payphone on their own land.

Most people now have a mobile phone and calls made from our public telephones have fallen by around 90 per cent in the past decade. BT is also replacing more than 1,000 payphones in major cities across the UK, with new digital hubs called InLinks as part of a joint venture with InLinkUK. Each InLink provides ultrafast, free public Wi-Fi, phone calls, device charging and a tablet for access to city services, maps and directions.

For further details on how to apply to Adopt a Kiosk, simply go to www.bt.com/adopt where application forms and information can be found.

Case study

Two former traditional red phone boxes purchased by Appleton Parish Council in Warrington, Cheshire, for £1 each through BT’s Adopt a Kiosk scheme have now been converted into a great community asset.

The Parish Council secured the boxes in 2017 and has now successfully refurbished them. The one kiosk has been turned into a Book Swap where residents, including school children, can take and deposit books; while the other houses a defibrillator.

Joanne Monks, clerk of Appleton Parish Council, said: “We secured two former red phone boxes through BT’s Adopt a Kiosk scheme for £1 each and we have turned them into a great community asset.

“The residents think it’s fantastic and the Book Swap is really popular with people of all ages. We have approx. 50 plus books stacked neatly within the former telephone box that people can take away, read, enjoy and then exchange for another one.

“We actually secured the defibrillator for free thanks to the British Heart Foundation and it’s an important facility. With something as serious as a cardiac arrest, time is of the essence and this one is situated in a place that’s easily accessible and could potentially help save someone’s life.

“I would encourage other communities to take advantage of the scheme and preserve a bit of heritage for their area while providing a valuable community asset.”

Residents using the Book Swap are asked to make a donation at the Parish Hall to help the project’s running costs. Appleton Parish Council also hopes that the box housing the defibrillator can be a recognised stop on any planned heritage trail of the area.

ENDS

Notes to Editors

Private individuals cannot purchase kiosks unless they own the land where the kiosk is currently placed.

Here’s a list of eligible bodies from our website: 

‘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 5^th 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

ENDS

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.