Recent Release | 16 Nov 2022
Babcock International Group’s Contribution to the UK Economy
Economic Consulting Team
Oxford Economics
This study assesses Babcock International Group’s contribution to UK GDP and employment, along with its broader social impact in the company’s 2022 financial year.
As well as measuring the company’s own impact on UK GDP, employment, and tax revenues, the study estimates its wider contribution through the supply chain and workers’ spending. Alongside national-level impact estimates, we present impacts for two areas in the UK where Babcock has its most concentrated economic footprint: the South West of England and Scotland. The report also explores how Babcock creates wider benefits for society, including through training programmes, contributions to the government’s “levelling up” agenda, meeting its Net Zero target, and promoting social value activities. Finally, the study looks at how Babcock supports employment in the most deprived areas of the UK, and in geographies hit hard by the Covid-19 pandemic.
We estimate that Babcock supported a £3.3 billion contribution to UK GDP in FY2022. In the same year, the Company’s operations supported 56,800 jobs across the country and contributed more than £770 million in tax revenues.
The company’s impact extends beyond its economic contribution, as its operations and activities create wider benefits for the UK. In 2021, Babcock was training nearly 1,000 apprentices and more than 250 people were participating in its graduate training scheme. Babcock also spends an estimated £290 million—27% of its procurement spending in the UK—with suppliers in areas classified as “high priority” for the government’s Levelling Up Fund. In addition, Babcock directly employed nearly 1,660 workers and spent £230 million with suppliers in the 20% most deprived local authority areas in the UK. This is alongside the 3,400 workers employed in areas where unemployment has increased most markedly since the beginning of the pandemic.
About the team
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Vasilis Douzenis
Lead Economist, Economic Impact
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