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BT rings up £23 billion boost for UK economy

Press Release   •   Nov 07, 2016 10:07 GMT

Takeover of EE strengthens BT’s position as a leading employer responsible for around 259,000 jobs across the UK;

BT spends more than £9 billion a year with UK suppliers

BT has given a massive £23.1 billion boost to the UK economy in the past year, according to an independent study published today.

The report by Regeneris Consulting highlights the huge impact of BT’s activities in the UK including its takeover of EE, which has strengthened the communications company’s position as one of the nation’s leading employers.

It revealed BT supported around 259,000 UK jobs through direct employment, spending with contractors and suppliers and the spending of employees – equivalent to one in every 95 employees working in the UK.

More than £9 billion was spent with UK suppliers.

The overall economic impact of BT and EE activities is expressed as a “Gross Value Added” (GVA)* contribution. For the UK, this combined GVA totalled £23.1 billion – equivalent to £1 in every £70 of the UK’s total GVA.

‘The Economic Impact of BT and EE in the UK’ outlines the combined economic contribution of the two companies across the English regions, Scotland, Wales and Northern Ireland in the financial year 2015/16.

London accounted for £6,060 million of the total GVA, Scotland £1,080 million, Wales £770 million and Northern Ireland £470 million with the remainder being shared between the English regions.

Tim Fanning, associate director of London-based Regeneris Consulting, said: “Our latest analysis has shown that, together, BT and EE contributed around £1 in every £70 of economic output in the UK in 2015/16. This is clearly a very substantial combined economic footprint. Moreover, this contribution is spread throughout communities up and down the country.”

Gavin Patterson, chief executive for BT, said: “Few organisations have a more positive and direct impact on the UK economy and its many communities than BT.

“The acquisition of EE means we can invest even further, enabling people living and working in the UK to get access to the best communications - fixed line, mobile and broadband services - now and in the future.

“As well as providing the means for families, homeworkers, companies and other organisations to communicate and do business in new and exciting ways, BT is helping to support other firms and suppliers in the UK with the company’s procurement and overall expenditure and the spending of its employees.”

Earlier this year, BT announced Openreach and EE would be investing around £6 billion during the next three years in the first phase of a plan to extend superfast broadband and 4G coverage beyond 95 per cent of the country by 2020. It is already making an investment of more than £3 billion in fibre broadband in the UK.

The company is also aiming to make ultrafast broadband available to up to 12 million UK homes and businesses by the end of 2020 using G.fast and fibre to the premises (FTTP) technologies.

The full report is available at: www.bt.com/reports

Ends

Note 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.

About Regeneris Consulting

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 new technology, physical developments, policy changes, investment programmes and corporate economic footprint. Regeneris work across the UK from their offices in London and Manchester. See: www.regeneris.co.uk for further information.

About BT

BT’s purpose is to use the power of communications to make a better world. It is one of the world’s leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services.BT consists of six customer-facing lines of business: Consumer, EE, Business and Public Sector, Global Services, Wholesale and Ventures, and Openreach.

For the year ended 31 March 2016, BT Group’s reported revenue was £19,042m with reported profit before taxation of £3,029m.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.btplc.com