BP’s contribution to the UK economy report sets out to quantify the impact of our business in more detail. We hope it will be of use in understanding how a large business plays its part in creating wealth and adding value to the national economy
2016 economic impact highlights
- BP supported an estimated £10.3 billion gross value added contribution to the UK’s gross domestic product (GDP) and 121,000 UK jobs in 2016.
- Of this total, BP’s direct UK operations – such as oil and gas fields, petrochemical plants, fuels retailing facilities and major offices – created a £4.2 billion gross value added contribution to UK GDP and employed 16,685 people. That is an increase of £1.5 billion from the previous year.
- BP spent a total of £7.5 billion with UK suppliers:
- £4.9 billion on non-capital goods and services, supporting an estimated £3.8 billion indirect contribution to GDP and over 66,500 jobs.
- £2.6 billion spent on capital goods, supporting an estimated £2.3 billion gross value added contribution to GDP and 37,500 jobs.
- BP’s direct, indirect and capital expenditures with UK suppliers are estimated to have supported 1 in every 260 jobs in the UK in 2016, or 0.4% of all employment in the country.
- BP spent a further £1.7 billion with UK-registered businesses operating overseas.
- An estimated 0.5% of UK GDP in 2016 was in some way reliant on BP’s activities – whether directly, indirectly, or through BP’s capital expenditure. That is £1 in every £190 of GDP created in the UK during the year.
- BP paid approximately £1.6 billion in dividends to UK-based shareholders in 2016.
- In 2016, BP paid or collected £2.7 billion in tax to the UK government. That is equivalent to £1 for every £210 paid to HMRC in 2016, or 0.5 percent of all tax receipts.
Channels through which BP contributes to the UK economy
BP’s impact on the UK’s regional economy
Ten UK industrial sectors receiving the largest amount of BP’s UK operational procurement spend in 2016
£ billion Source: Oxford Economics
121,000 British jobs were supported by BP in 2016, with direct UK operations creating £4.2 billion gross value added contribution to UK GDP and employing 16,685 people.
The indirect impact of BP procurement of goods and services and capital expenditure supported an estimated additional 104,120 people in the wider UK economy.
Procurement impact and supplier diversification
BP has relationships with a diverse range of UK suppliers, from architectural and engineering services to water transport.
BP’s around 3,500 UK suppliers of goods and services in 2016 are distributed throughout the UK, receiving a total of £4.9 billion.
Some 22% of them were located in London, 22% in the South East, 12% in Scotland and 10% in the Midlands.
In 2016, BP spent £2.6 billion on capital goods from around 800 UK suppliers. Of these, 22% were in Scotland, 21% were in the South East and another 14% were in London.
In addition, £1.7 billion was spent by BP with UK-registered businesses operating abroad.
Source: BP, based on invoice location
Estimated geographic distribution of BP’s 3,500 UK suppliers of goods and services in 2016
Source: Oxford Economics
Estimated geographic distribution of BP’s 800 UK suppliers of goods in 2016
Source: Oxford Economics
BP’s ongoing social contribution to the UK
Over the past 50 years, BP has demonstrated a consistent commitment to UK communities through our support of schools, arts and culture, sport, community organisations and charities.
BP’s UK employees volunteered 28,250 hours and enabled £1.9 million of contributions to community organizations during 2016.
You can find out more about our work at BP in the community.
About the report
This is a short update to complement the original report by Oxford Economics, BP’s impact on the UK economy, September 2015 and the 2016 update.
This 2017 summary reflects the economic contribution for the calendar year 2016 and can be read alongside the previous reports for a year-onyear comparison.
Find out more about the methodology used in performing this analysis.
Contacts, links and further information
Press enquiries: email@example.com
Government affairs enquiries: UKGovernmentAffairs@uk.bp.com
BP disclaims any obligation to update this publication. Neither BP p.l.c., nor any of its subsidiaries, accepts liability for any inaccuracies or omissions or for any direct, indirect, special, consequential or other losses or damages of whatsoever kind in connection to this publication or any information contained in it.