British Land construction programme contributes £1.2BN to UK economy18th September 2012

British Land has published a report detailing the substantial socio-economic impact of its development programme both at a national and regional level, contributing £1.2bn to the UK economy and creating 32,300 jobs through its construction projects.

The report Building Business, Creating Growth, based on work undertaken by PwC for British Land, analyses the impact the company’s £2.1bn development programme is having on communities throughout the UK, covering the period from 2011 to 2015. For every £1 million British Land spends on construction it generates an estimated 31 jobs.

While much of the construction takes place in central London and many of the jobs are naturally on the construction sites themselves, between 2011 and 2015 British Land’s off-site construction expenditure will have supported an estimated 4,300 jobs across the UK outside London and contributed £186 million to the UK economy.

British Land’s £80 million expenditure on steelwork will create 1490 jobs in Northern England and Northern Ireland while £59 million spent on mechanical and electrical services will create 650 posts in the South-East, Midlands and London.

The benefits of British Land’s construction programme are spread throughout the UK. Its construction expenditure is estimated to generate the greatest economic contributions in London, the South-east, and Yorkshire and Humberside. Of the total construction sector’s gross value added in those regions, British Land's contributions represent around 2.1per cent, 0.4per cent and 0.6per cent respectively.

Chris Grigg, Chief Executive of British Land said: “There is much debate about how we might rebalance the UK economy and ensure that all regions benefit from economic growth more equally. This report highlights how British Land and our partners are investing in the UK economy and communities around the UK through our £2.1 billion development programme. Whether it’s steel from the North West that is being used at The Leadenhall Building, or concrete from Yorkshire used at 5 Broadgate, our central London construction projects are the driving force behind the stability and growth of hundreds of businesses across the country.”

Once completed, British Land’s new buildings will be home to a wide range of businesses, including UBS, Aon and Debenhams, as well as providing retail space to brands such as M&S, Next, Boots and H&M. The activities of the occupiers of British Land’s buildings will also contribute £1.1 billion annually to the UK economy.