A NEW REPORT has revealed the contributions that the business service sector has made to strengthen the UK economy.
The report by the Business Services Association was commissioned from Oxford Economics sets out national, regional, and constituency level activity by the sector.
Compromising of five categories – FM, Business Process Outsourcing, IT and Digital Services, Construction Services and Front-line Outsourced Public Services – it was identified as a major contributor to the UK economy.
The report revealed that business services sector accounts for 8.7% of output (£263 billion per annum) and contributes £33.5 billion in the five main taxes (10.5% of all revenues from these sources), according to the report.
The report also shows that the sector plays a significant role in creating jobs:
- 3.3 million people are employed, 10.2% of all UK jobs
- Employs more people than manufacturing
- Employment is evenly spread across the country – between 8.25% and 11.75% of people in each UK region work in the sector
The number of jobs directly dependent on cleaning and related activities in the business services sector is put at some 367,000 with an annual turnover of £7.4 billion in the UK.
Mark Fox, chief executive of the BSA, commented: “We welcome this piece of research highlighting the contribution the business services sector makes to the UK economy, as both a significant employer and provider of key services.”