New report highlights Centrica’s wider economic impact in the UK
Centrica’s UK activities support 174,000 UK jobs and generate tax payments equivalent to £158 for every UK household, according to analysis by Oxford Economics, the Global economics consultancy.
The analysis quantified the direct impact that Centrica has on the UK through its upstream, downstream and storage operations, but also the indirect impact generated through its UK supply chain and the induced impact due to spending by Centrica staff and suppliers’ staff.
The key highlights for 2012 show that in total Centrica:
- Made a £14.1 billion contribution to UK GDP, equivalent to the size of the economy of the City of Manchester.*
- Supported 174,000 jobs in the UK, equivalent to total employment in the City of Leicester. **
- Purchased inputs of goods and services worth £9.4 billion, sourced from over 6,000 UK businesses located in 377 of the 380 local authority districts in Britain. ***
- Generated £4.2 billion in total tax payments, including the supply chain impacts, equivalent to £158 for every household in the UK. ****
- For every £1 billion Centrica contributes to GDP itself, it generates another £2.9 billion in the rest of the UK economy through multiplier impacts.
Adrian Cooper, CEO of Oxford Economics, commented:
“By generating tax revenue, supporting jobs and stimulating economic activity along its supply chain, the impact of Centrica’s activities is shown to extend well beyond its core function of delivering a secure energy supply to businesses and consumers across the country. Our research clearly demonstrates the significant contribution that a large and successful British company can make to the economy as a whole, especially the job market and the UK’s public finances.”
Sam Laidlaw, Chief Executive of Centrica, said:
“This study shows how companies like Centrica are an engine for sustaining and stimulating growth. At a time of uncertain economic prospects, our activities across the UK are even more important to secure employment, put the supply chain to work and contribute our fair share of tax.”
Notes to Editors:
* Defined using the metropolitan borough of Greater Manchester.
** Defined using the Unitary Authority of Leicester.
*** Includes the purchase of UK commodities (Power and Gas) from outside of the Centrica Group.
**** Tax generated includes: corporation tax, employees and employers national insurance contributions, PAYE, and indirect tax payments made by consumers. VAT paid and collected by Centrica is excluded.
The Centrica UK Economic Impact Report, setting out the full details of analysis by Oxford Economics, will be published in March 2013.
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