BT Group contributes £1.6bn to North West economy

Date published: 05 February 2019

BT Group is responsible for generating £1 in every £105 produced in the North West’s economy, according to an independent report published today, Tuesday 5 February.

‘The Economic Impact of BT Group plc in the UK’ report, by Hatch Regeneris, shows that the communications company generated a £1.6bn (£1,600 million) contribution – expressed as “Gross Value Added” (GVA)* – to the North West economy during the 2017/18 financial year.

The report estimates that the equivalent of 20,700 full-time jobs in the North West are supported through BT’s direct employment, its spending with contractors and suppliers and the spending of its employees.

BT Group directly employs 7,460 people in the North West, with a further 1,670 employed as contractors. It’s estimated that BT Group supports one in every 110 employees working in the North West’s private sector, reinforcing its position as one of the region’s leading employers.

The Group also spent nearly £416 million with suppliers based in the North West.

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.

Kieran Charleson, BT Group Regional Director, North of England, said: “Few companies play as important a role in the North West as BT Group. Not only does BT connect friends, families and businesses across the UK, but we also make a significant contribution to the region’s economy.

“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.

“With 9,130 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 the community.”

Damian Waters, Director, CBI North West, said: “BT is a major employer in the North West and has a big impact on the economy and jobs. It is good news to see this significant presence in the region 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. BT’s investment in the fastest networks and latest technology is also vital for the region. Being connected 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 North West in 2017/18, BT Group:

  • Directly employed a total of 9,130 people (FTE, including contractors) and supported an estimated 20,700 full-time jobs
  • Spent £416 million with suppliers based in the North West
  • Generated £1.6bn total GVA impact (including indirect and induced effects)
  • Directly employed 1 in every 250 employees in the private sector across the North West, and 1 in every 10 in the IT and Communications sectors
  • Supported £1 in every £105 of GVA in the North West’s economy and 1 in every 110 employees working in the region’s private sector.

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