BT Estimates it Boosted UK Economy by £24bn GVA in 2021-22

Broadband ISP and telecoms giant BT and consultancy firm Hatch have today published their annual economic impact report for 2021/22, which among other things found that the operator provided an estimated boost of £24bn (Gross Value Added) to the UK economy last year and supported a total of 284,00 jobs.

The Economic Impact Report 2023 attempts to show BT Group’s (including EE, Plusnet and Openreach) economic contribution to the UK national economy and to regional economies in terms of jobs, output and Gross Value Added (GVA) supported. But it’s worth noting that the figure of £24bn is unchanged from when we last covered one of these reports in 2021 (here).

The results in this report have been split by Direct Impacts (i.e. people they employed), Indirect Impacts (i.e. income and employment created with suppliers as a result of BT’s spending) and Induced Impacts (i.e. further income and employment generated as wages are spent within the economy).

However, if we compare the latest results with those from their 2019/20 financial year – two years earlier, then it’s possible to see how their impact has changed. For example, there’s the notable loss of over 2,000 direct employees, albeit with a significant rise in contractors. Spend with suppliers has also fallen from £10.1bn to £9.3bn.

Key BT Impacts on UK Economy in 2021/22 vs 2019/20
• 80,200 employees directly working for BT Group, and 17,100 contractors (Full Time Equivalent – FTE).

NOTE: In 2019/20 the figure was 82,800 employees (direct) and 10,600 contractors.

• 284,000 total FTE jobs supported (including indirect and induced effects).

NOTE: In 2019/20 the figure was 300,000 total FTE jobs.

• £3.5 billion total income of BT Group employees (including contractors).

NOTE: In 2019/20 the figure was £3.4bn total income of BT Group employees.

• £9.3 billion spend with suppliers based in the UK.

NOTE: In 2019/20 the figure was £10.1bn spent with UK suppliers.

• £24 billion total GVA impact associated with BT Group activities (including indirect and induced effects).

NOTE: In 2019/20 the figure was the same.

• BT Group directly employed 1 in every 220 employees in the private sector across the UK, and 1 in every 14 in the IT and Communications sector.

NOTE: In 2019/20 the figure was 1 in every 230 employees in the private sector and 1 in every 12 in the IT and Comms sector.

• BT Group directly created £1 in every £175 of GVA in the UK.

NOTE: In 2019/20 the figure was £1 in every £165 of GVA.

• As a result of the full economic impact of BT Group, the firm supported £1 in every £80 of GVA in the UK economy and 1 in every 90 employees working in the UK economy.

NOTE: In 2019/20 the figure was £1 in every £75 of GVA and the employees figure was unchanged.

The Chief Executive of BT Group, Philip Jansen, said: “BT Group plays a vital role at the heart of the UK economy. We’re one of only a handful of companies that serves customers in every corner of the country. We’ve continued our major investment in building next generation full fibre and mobile connectivity rapidly across the UK. We’ve already reached 9.6 million premises with full fibre, and our 5G mobile network now reaches 60% of the UK population. The benefits to families and businesses are huge: new jobs, economic growth and innovation, across every nation and region.”

The full report includes a regional breakdown of the results.