Tomorrow’s Business: 20th January

NEW RESEARCH REVEALS IMPACT OF THE INTERNET ECONOMY ACROSS LONDON

THE INTERNET is an economic powerhouse that is driving the economy in London through jobs, businesses and output, new Internet Association analysis reveals today.

The new research by Internet Association highlights the value the internet brings right across the UK economy. Nationally, the internet economy contributes approximately 400,000 jobs, 80,000 businesses, and £45 billion in Gross Value Added to the UK’s Gross Domestic Product (GDP). These equate to about 1.2 percent of UK jobs, 3.1 percent of UK enterprises, and 2.3 percent of UK GDP.

The new research also gives, for the first time, a view of how important the internet economy is to London. IA, using a proprietary measurement approach, finds that the estimated number of internet sector jobs in this region is 92,000, the estimated number of internet sector businesses is approximately 21,000 and the estimated value-added generated from the internet sector is £11.5 billion.

Speaking about the new figures, Secretary of State for Digital, Culture, Media and Sport Nicky Morgan said: “These great new numbers demonstrate the strength of our tech industry and confirm the UK’s reputation as one of the world’s leading digital economies. In government we are working hard to maintain this success by helping entrepreneurs turn their ideas into business successes, investing in digital skills training and making sure we have a fantastic business environment.”

The findings showed:

• Cities of London and Westminster is London’s internet powerhouse. There are approximately 23,000 internet sector jobs in the constituency, 1,650 internet sector businesses and over £908 million in value-added.
• The constituency with the highest concentration of internet sector businesses in London is Orpington, where 6.6% percent of all local businesses are internet sector businesses. Poplar and Limehouse and Feltham and Heston have the second and third highest shares of internet sector businesses with 6.5 percent and 5.9 percent respectively.
• After Cities of London and Westminster, the second and third greatest value-added contributors are Holborn and St Pancras and Islington South and Finsbury with £402 million and £318 million respectively.

UK Executive Director Daniel Dyball said: “These figures highlight the true value of the internet sector to communities in London. From Peckham to the City of London, the internet is a major economic engine in the region.”

The findings of the report also showed:

• The internet sector provides nearly 400,000 jobs across the UK
  • The average number of internet sector jobs per constituency is 590
  • The median number of internet sector jobs across constituencies is 330
• The internet sector provides approximately 80,000 businesses in the UK
  • The average number of internet sector businesses per constituency is 120
  • The median number of internet sector businesses across constituencies is 80
• The internet sector contributes approximately £45 billion in value-added, the equivalent of 2.3 percent of GDP
  • The average value-added generated from the internet sector per constituency is £69 million
  • The median value-added generated from the internet sector across constituencies is £50 million

Dyball continued: “The positive figures and tangible benefits are only set to grow as technology develops, but the Government must ensure the UK has the right policies to allow the internet to thrive. We are keen to work with the new Government to make the UK one of the best internet economies in the world.”

– Ends –

Join our mailing list to receive Tomorrow’s Business every Monday to Thursday and learn which companies and business news topics will be making the headlines over the coming week.