Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
BP’s impact on the UK economy
in 20162017 update based
on research and analysis by Oxford Economics
BP’s impact on the UK economy in 2016 13
This is a short update to complement the original report by Oxford Economics, BP’s impact on the UK economy, September 2015 and the 2016 update.
This 2017 summary reflects the economic contribution for the calendar year 2016 and can be read alongside the previous reports for a year-on-year comparison.
BP’s impact on the UK economy in 2016 13
2016 economic impact highlights
• BP supported an estimated £10.3 billion gross value added contribution to the UK’s gross domestic product (GDP) and 121,000 UK jobs in 2016.
• Of this total, BP’s direct UK operations – such as oil and gas fields, petrochemical plants, fuels retailing facilities and major offices – created a £4.2 billion gross value added contribution to UK GDP and employed 16,685 people. That is an increase of £1.5 billion from the previous year.
• BP spent a total of £7.5 billion with UK suppliers:
- £4.9 billion on non-capital goods and services, supporting an estimated £3.8 billion indirect contribution to GDP and over 66,500 jobs.
- £2.6 billion spent on capital goods, supporting an estimated £2.3 billion gross value added contribution to GDP and 37,500 jobs.
• BP’s direct, indirect and capital expenditures with UK suppliers are estimated to have supported 1 in every 260 jobs in the UK in 2016, or 0.4% of all employment in the country.
• BP spent a further £1.7 billion with UK-registered businesses operating overseas.
• An estimated 0.5% of UK GDP in 2016 was in some way reliant on BP’s activities – whether directly, indirectly, or through BP’s capital expenditure. That is £1 in every £190 of GDP created in the UK during the year.
• BP paid approximately £1.6 billion in dividends to UK-based shareholders in 2016.
• In 2016, BP paid or collected £2.7 billion in tax to the UK government. That is equivalent to £1 for every £210 paid to HMRC in 2016, or 0.5% of all tax receipts.
BP’s impact on the UK economy in 2016 32
£1.7bnspent with UK-registered businesses operating overseas
£10.3bncontribution madeto UK GDP
£1.6bn BP paid around
in dividends to UK-based shareholders
121,000 BP supported
jobsone in every 260 in the UK
1968BP has been working with UK schools since
1966Supporting world-class arts and culture in the UK since
BP’s impact on the UK economy in 2016 32
£2.6bnspent on capital goods from UK suppliers
£7.5bnspent with UK suppliers
£4.9bnspent on non-capital goods and services from UK suppliers
3,500UK suppliers of goods and services
0.5%BP’s activity supported
of UK GDP
800UK suppliers for capital expenditure
BP’s impact on the UK economy in 2016 54
Ten UK industrial sectors receiving the largest amount of BP’s UK operational procurement spend in 2016 £ billion Source: Oxford Economics
Channels through which BP contributes to the UK economy
DirectImpact
IndirectImpact
IndirectImpact
TotalImpact
BP employs lots of staff. Its operations generate GDP and tax for HM Treasury.
BP spends money with suppliers across the UK who employ staff, generate GDP and pay taxes.
BP also undertakes capital investment, spending money with additional UK suppliers, which generates more jobs, GDP and tax.
Together all these effects comprise the total economic impact of BP on the UK economy.
CAPITAL SPEND
OPERATIONAL SPEND
BP’s impact on the UK’s regional economy
4
Wholesale trade
Coke and refinedpetroleum products 0.54
0.54
0.46
0.45
0.27
0.34
0.21
0.26
0.26
0.27
Architectural andengineering services
Computer programming,consultancy
Water transport
Repair and installation
Employment services
Warehousing and supportfor transportation
Mining support services
Machinery and equipment
BP’s impact on the UK economy in 2016 54
121,000 British jobs were supported by BP in 2016, with direct UK operations creating £4.2 billion gross value added contribution to UK GDP and employing 16,685 people.
The indirect impact of BP procurement of goods and services and capital expenditure supported an estimated additional 104,120 people in the wider UK economy.
BP’s impact on the UK’s regional economyEmployment impact
Direct GVA (£m)
Direct employment
Indirect jobs supported
£
Scotland
3,005 directly employed25,780 indirect jobs supported
£763m
London
3,296 directly employed21,646 indirect jobs supported
£837m
Yorkshire and the Humber
694 directly employed5,155 indirect jobs supported
£176m
East of England
1,432 directly employed4,957 indirect jobs supported
£364m
South East
6,620 directly employed11,879 indirect jobs supported
£1,681m
Rest of UK
1,638 directly employed34,705 indirect jobs supported
£416m
BP’s impact on the UK economy in 2016 5
BP’s impact on the UK economy in 2016 76
BP has relationships with a diverse range of UK suppliers, from architectural and engineering services to water transport.
BP’s around 3,500 UK suppliers of goods and services in 2016 are distributed throughout the UK, receiving a total of £4.9 billion.
Some 22% of them were located in London, 22% in the South East, 12% in Scotland and 10% in the Midlands.
In 2016, BP spent £2.6 billion on capital goods from around 800 UK suppliers. Of these, 22% were in Scotland, 21% were in the South East and another 14% were in London.
In addition, £1.7 billion was spent by BP with UK-registered businesses operating abroad.
Procurement impact and supplier diversification
Source: BP, based on invoice location
BP spending (£ million)
0 500
BP’s impact on the UK’s regional economy
BP’s impact on the UK economy in 2016 76
Estimated geographic distribution of BP’s 3,500 UK suppliers of goods and services in 2016Source: Oxford Economics
Estimated geographic distribution of BP’s 800 UK suppliers of capital goods in 2016Source: Oxford Economics
6%Other (194)
4%East Midlands (151)
5%South West (171)
6%West Midlands (209)
6%Yorkshire andthe Humber (207)
7%North West (251)
22% London (767)
10%East of England (335)
22% South East (769)
12% Scotland (418)
5%Other (37)
4%East Midlands (34)
4%South West (32)
6%West Midlands (50)
6%Yorkshire andthe Humber (50)
8%North West (62)
22% Scotland (176)
10%East of England (76)
21% South East (165)
14% London (112)
BP’s impact on the UK economy in 2016 98
For a description of the methodology used in performing this analysis, please refer to the information at: bp.com/uk/economicimpact
Methodology
Over the past 50 years, BP has demonstrated a consistent commitment to UK communities through our support of schools, arts and culture, sport, community organizations and charities.
BP’s UK employees volunteered 28,250 hours and enabled £1.9 million of contributions to community organizations during 2016.
You can find out more about our work at:bp.com/uk/bpinthecommunity
BP’s ongoing social contribution to the UK
£1.9mUK communities benefited from
BP’s impact on the UK economy in 2016 98
Press [email protected]
Government affairs enquiries [email protected]
For further informationbp.com/uk
AcknowledgementBP would like to thank its partners in the production of this publication.
DisclaimerBP disclaims any obligation to update this publication. Neither BP p.l.c., nor any of its subsidiaries, accepts liability for any inaccuracies or omissions or for any direct, indirect, special, consequential or other losses or damages of whatsoever kind in connection to this publication or any information contained in it.
Designthebigwindow.co.uk
Printing
Pureprint Group Limited, UK ISO 14001
Contacts, links and further information
BP p.l.c. 1 St James’s Square London SW1Y 4PDbp.com
© BP p.l.c. 2017