Virgin Media’s recent report highlights the potential of digital technologies to significantly boost the UK economy.
- The report, ‘The UK’s £92 billion Digital Opportunity’, suggests a 2.5% GDP increase through digital advancements.
- Digital technologies could create over a million jobs in various sectors, despite some anticipated job losses.
- Small and medium enterprises (SMEs) are poised to gain significantly from digital investments.
- Geographical and sectoral opportunities in the UK exhibit significant potential for economic growth.
Virgin Media has introduced groundbreaking research revealing that digital technologies could offer substantial growth prospects for the UK economy. The report, ‘The UK’s £92 billion Digital Opportunity’, suggests that embracing digital advancements can add an additional 2.5% to the nation’s GDP.
Insights from interviews with over a thousand senior executives across UK companies, employing 470,000 workers, indicate that digital capabilities have recently generated £123 billion, equating to 3.4% of GDP. These digital capabilities have enabled businesses to increase revenues by 4.4% and cut costs by 4.3%.
Forecasts over the next two years indicate positive prospects despite expectations of approximately 300,000 job losses due to digital transformations. However, the net job creation is expected to be around 800,000 due to increased hiring in various sectors, driven particularly by digital investments, resulting in over a million new jobs.
A notable portion of this growth potential lies with SMEs, which, although resource-constrained, foresee an additional £56 billion boost by leveraging digital technologies. SMEs also aim to expand their workforce by 6%, significantly outpacing larger firms.
Digital Leaders, characterized by their strategic digital investments, have demonstrated a marked improvement in financial performance, with a 5.3% surge in revenues and a 5.5% reduction in costs, exerting a significant influence on economic growth.
Economically, the advancement of digital technologies presents varied opportunities across the UK, with professional and tech services positioned to gain approximately £27 billion annually. Other sectors, including wholesale, manufacturing, and financial services, also stand to benefit substantially.
The geographical spread sees London leading with potential gains of £48.5 billion, while regions like Scotland, Wales, and the North-West and South-East of England could witness impressive revenue increments of 3.6% and 3.1%, respectively.
Key voices in the sector, such as Peter Kelly from Virgin Media and John Cridland from CBI, underscore the transformative power of digital advancements and advocate for necessary investments in technology and skills to capitalize on opportunities. Ed Vaizey MP emphasizes the need for government collaboration with the private sector to lay a robust foundation for a digitally-driven future.
Embracing digital technologies promises considerable economic gains for the UK, necessitating strategic investments and collaborations.
