Recent findings reveal the vast potential of digital technologies to enhance the UK economy.
- The report suggests a 2.5% GDP increase with full digital adoption.
- A net creation of 800,000 jobs is anticipated despite some job losses.
- Professional services could see the largest revenue growth among industries.
- Access to superior digital capabilities could benefit all UK regions.
Virgin Media Business has unveiled new research indicating the substantial role digital technologies can play in bolstering the UK economy. The report, titled ‘The UK’s £92 billion Digital Opportunity,’ was produced by Oxford Economics and highlights the potential for digital innovations to increase the UK’s GDP by 2.5%, along with the creation of over a million jobs across various sectors in the next two years.
The survey involved interviews with senior executives from over 1,000 UK-based companies, collectively employing 470,000 individuals. The companies observed an increase in revenues by 4.4% and a reduction in costs by 4.3% in the past year due to digital capabilities, contributing an estimated £123 billion to the economy.
Despite potential job redundancies totalling around 300,000 (or 2% of the workforce), the overarching outlook remains optimistic. More than 40% of businesses believe no jobs will become obsolete, and future employment projections include a net gain of 800,000 jobs attributable to digital advancements.
Financial forecasts show that digital technologies could potentially add £92 billion annually to the UK economy if maximum digital capabilities are leveraged. Professional and tech service sectors are anticipated to benefit the most, potentially expanding their revenues by £27 billion annually, while wholesale, retail, manufacturing, financial services, and the transport sectors expect notable gains as well.
The report underscores the geographical spread of these opportunities, noting that while London stands to gain the most (£48.5 billion), regions like Scotland, Wales, the North-West, and South-East also exhibit significant potential for revenue growth.
Small and medium-sized enterprises (SMEs), in particular, are expected to see a £56 billion increase if they optimise their digital capabilities. SMEs are strategically prioritising digital investments to boost employment by 6% over the next two years, triple the rate of larger firms.
The concept of ‘Digital Leaders’ identified in the report refers to firms excelling through comprehensive digital investments across diverse areas, such as technology infrastructure, workforce, and customer engagement. These leaders have reported a 5.3% revenue improvement and a 5.5% cost reduction due to prudent digital investments, outperforming other firms by 30%.
Peter Kelly, Managing Director of Virgin Media Business, articulated that digital technologies are reshaping both business operations and the wider UK economy. He stressed the need for businesses with growth ambitions to invest wisely in technology and skills, while urging both the government and industry to facilitate adequate infrastructure and support.
John Cridland from the CBI acknowledged the compelling digital opportunity outlined in the report, emphasising the need for increased educational focus on computing and welcoming the potential benefits of the EU digital single market for reducing e-commerce barriers.
Digital Economy Minister Ed Vaizey reinforced the government’s commitment to collaborating with companies like Virgin Media to enhance the nation’s digital capabilities, paving the way for a digitally advanced future.
The integration and enhancement of digital technologies offer a transformative opportunity for substantial economic growth across the United Kingdom.
