The UK economy will get a £16.5bn boost from the London Olympic Games, a new report claimed today.
Banking group Lloyds, whose Lloyds TSB is a London 2012 sponsor, said that the event is driving activity across the key sectors of construction and tourism, leading to jobs, expenditure and opportunities for businesses across the UK. Moreover, small and medium-size businesses are contributing more than half (52%) of the overall increase.
Lloyds estimates that the Games will help support and create the equivalent of more than 62,200 jobs in London and across the country.
The report, The Economic Impact of the London 2012 Olympic & Paralympic Games, examines the overall impact that the Games is likely to have on the UK’s economy. It covers the period from London’s successful bid in 2005 through to 2017. Although around 70% of the total GDP impact expected from the Games will come from the period in the run up to and including the event, the five-year ‘legacy’ is estimated to generate as much as £5bn.
According to Lloyds, the benefits in these post-Olympics years include the impact on GDP from construction and tourism, as well as a significant legacy effect on the physical environment and the labour market. The bank noted that the Games would leave a legacy of six new neighbourhoods, with 11,000 new homes, five new schools, six new community centres and 250 acres of new parkland.
Additionally, the overall economic impact is expected to be spread across the UK, with London delivering £6bn of the £16.5bn GDP contribution and other parts of the UK responsible for the remaining £10.5bn.
Lloyds also believes that a London 2012 ‘happiness effect’ will impact on GDP, with the Games having a positive effect on the public mood which will lead to improved consumer confidence, resulting in a rise in consumer spending. The bank claimed that the ‘happiness effect’ of Euro 1996 was equivalent to a gift of £165 to each man, woman and child in England and the effect of London 2012 is anticipated to be at least comparable this event.