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 

A celebration event was held yesterday (25 September) at BT Sport Production Hub in Queen Elizabeth Olympic Park, to mark the graduation of 45 people who took part in an 11-day BT Work Ready Programme.

Labour peer, Lord Tony Young attended to present certificates to the graduates. The participants, all aged between 18 and 24, have received training and work experience with the telecoms firm to help them in their future careers.

BT’s Work Ready programme, in partnership with charity Movement to Work (MtW), is helping thousands of young people not in education, employment or training across the UK. The programme equips them with vital skills and work experience for a career in an increasingly digital world.

Fabian Douglas, 21, from Bromley, said he had struggled to find a job since 2017 but was feeling more optimistic after taking part in the programme.

“The BT Work Ready programme has been great and I already feel so much more confident. I’ve gained tips on how to create a great CV, learned how to cope with the pressure of a job interview and developed lots of new skills which I’ve now updated on my LinkedIN profile. Being unemployed over the past couple years has been difficult, but this opportunity at BT has given me a clearer understanding of what I want to do.

“The work experience placement was brilliant and I’m really grateful to the BT staff who helped me get a taste of what it’s like working in a digital role for the company. It’s also opened my eyes to the opportunities available.”

Mat Sears, corporate affairs director for BT’s Consumer division, who presented certificates alongside Lord Young at the event, said: “I’d like to say a huge congratulations to all these young people who have taken the first steps towards their future careers.

“Nothing can imitate a real working environment so that is exactly what this programme sets out to achieve. The workplace is changing and nearly all jobs in the future will require at least an element of digital skills, so it’s vital that we equip the next generation with the tools and knowledge they need to be able to thrive.”

The work placements are part of a national pilot of the Government-led Transition to Work project which aims to support unemployed young people into work.

Youth unemployment remains a challenge in the UK. The national youth unemployment rate was 11.4% in May-July 2019*, compared with 3.8% for the whole population**. In London, 13.3% (121,000) of young people aged 16-24 are currently Not in Education, Employment or Training (NEET) according to latest figures***.

Since BT launched its Work Ready programme in 2014, around 3,000 young people have graduated from the scheme. More people took part than ever before during 2018 with 982 starting the programme and 77% of those completing it.

The Movement to Work charity focusses mainly on young people who are NEET. More than 50% of those who have completed a placement have gone into employment or back into education.

James Ashall, Movement to Work chief executive, said: “Congratulations to all the young people who have graduated from the BT Work Ready programme and we wish them all the best in their future careers.

“Brilliant employability programmes help businesses build a workforce that represent the communities in which they operate. This ultimately drives diversity, promotes social mobility and, crucially, supports individuals to fulfill their potential.”

Notes to editors

* Source: Parliament UK Research Briefing, September 2019 https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN05871

** Source: ONS Labour Market Overview, UK: September 2019 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/september2019

*** Source: NEET Statistics Annual Brief 2018

https://www.gov.uk/government/statistics/neet-statistics-annual-brief-2018

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 £6.1bn billion contribution – expressed as “Gross Value Added” (GVA)* – to the London economy during the 2017/18 financial year.

The report estimates that the equivalent of 75,400 full-time jobs in London are supported through BT’s direct employment, its spending with contractors and suppliers and the spending of its employees.

BT Group directly employs 11,400 people in London, with a further 1,400 employed as contractors. It’s estimated that BT Group supports one in every 50 employees working in London’s private sector, reinforcing its position as one of the capital’s leading employers.

The Group also spent nearly £3.3bn with suppliers based in London.

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.

Last year, EE, the UK’s number one mobile network and part of BT Group, launched nine 5G trial sites which went live across East London. As well as these sites in East London, EE is also trialling live 5G in Canary Wharf, and new device functionality is being tested in the state-of-the-art Borehamwood test lab. EE aims to be the UK’s first mobile network to offer consumers and businesses 5G, and the 5G network is being launched in 2019 in the parts of the UK’s busiest cities.

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.

Stacey King, BT Group Regional Director, London and South East, said: “London is a strategically important part of the country for 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 £65 of wealth in London.

“We’re proud to be one of the capital’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.

“With 11,400 people directly employed in London, 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.”

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 London in 2017/18, BT Group:

Directly employed a total of 12,700 people (FTE, including contractors) and supported an estimated 75,400 full-time jobs

Spent £3.3bn (£3,360 million) with suppliers based in London

Generated £6.1bn (£6,170 million) total GVA impact (including indirect and induced effects)

Directly employed 1 in every 300 employees in the private sector across London, and 1 in every 20 in the IT and Communications sectors

Supported £1 in every £65 of GVA in London’s economy and 1 in every 50 employees working in the capital’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.