A report from Deloitte reveals that the London technology, media and telecoms (TMT) sector generates an overall economic contribution of £125 billion (€147bn) a year to London and the rest of the UK. This accounts for 8 per cent of UK GDP.
To ensure London remains a global TMT hub, the government and financial services industry need to support the technology sector with adequate funding to develop companies that can be globally successful. The sector also needs to drive collaboration between businesses, universities and other institutions, and nurture talent that combines creative and tech skills, to successfully innovate in the digital economy.
London is the economic engine for the rest of the UK. The £26 billion of direct economic impact (Gross Value Added) generated from the London TMT sector, leads to an additional £23 billion of economic impact for London. London TMT activity also leads to £77 billion of economic impact for the rest of the UK through the London TMT sector’s purchases and employee spending as well as through the enablement of other sectors within the economy.
Other key findings:
• Half (46 per cent) of UK media jobs are in London;
• The sector employs over 440,000 people in London;
• One in ten jobs in London are in the TMT sector;
• Over a quarter (28 per cent) of total TMT employment in the UK is in
• TMT companies occupy 25 million sq ft of real estate in central
London, 13 per cent of office space.
Ed Vaizey, Minister for Culture, Communications and Creative Industries, said: “As this report highlights, London stands out as a global leader in technology, media and communication. This is why Government is investing in initiatives like the £16 million Skills Investment Fund and the £150 million Superconnected Cities program, which will equip our sectors for the future, and continue the valuable fusion of creative and technology skills.”