New report highlights economic effects of BBC regional investment

bbcmediacity

A new report, published today, reveals how the BBC boosts the growth of creative industries across the UK.

The research, conducted by PwC, shows that a 15 per cent increase in the BBC’s local footprint doubles the rate of growth of the surrounding creative industries over time.

Creative hubs such as the BBC’s base at MediaCityUK in Salford, as well as sites in Cardiff, Glasgow, Belfast and Birmingham have seen a considerable level of growth as a result of BBC investment, with a larger BBC presence amplifying the local creative economy.

The BBC’s sustained investment in the regions builds talent pools, shared expertise and partnerships across the sector locally that encourages other businesses to locate and invest. This creates more creative businesses and more job opportunities with highly-skilled, higher-paid roles that deliver greater productivity.

The BBC’s Across the UK plans, which sees £700m additional spend outside of London by 2027/28, will be expected to result in 4,750 new creative businesses and 45,000 additional jobs outside London.

Recently announced changes include a planned investing at least £25m in the creative industries of the North East, working in partnership with local authorities, by 2027.

Tim Davie, BBC director-general, said: “We’ve seen the significant impact the BBC has on creative economies regionally with greater growth, new creative businesses and more highly skilled jobs. We have delivered big moves for TV, radio and news content, better representing and reflecting audiences across the UK, and we are committed to doing more.

“We think there is an opportunity not just for the BBC but for the wider creative industries to accelerate growth, and we’d be delighted to work with other institutions and businesses to achieve that.”

The result of BBC investment is skilled, better paid jobs and more opportunities in the local area with workers earning between 7.3 per cent and 9.4 per cent more than before BBC investment, the equivalent to around £2,600 per year.

The report also found that a five per cent increase in the BBC’s footprint in Greater Manchester would lead to 120 new creative businesses within a year. An equivalent increase in Birmingham, meanwhile, would create 60 new creative businesses, while the report suggested that nationally, a one per cent increase in the size of a creative hub increases the share of local workers employed in the creative sector by 1.7 percentage points.

The UK creative sector grew by 44 per cent over the period from 2010-2019, more than double the growth of 17.9 per cent across the UK economy over the same period. The creative sector has the potential to double in size by 2030.

 

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