Transport for London Economic Impact Report
Mapping TfL's UK-wide supplier impact
Transport for London (TfL)
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United Kingdom
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2023 - 2024
TfL spent over £12 billion between 2022-2024 adding over £11 billion in total gross value across the UK.
The creation of over 100,000 full-time jobs each year, which is larger than the entire population of East Cambridgeshire.
30% of TfL's suppliers operate in low-carbon industries, and 10% supply cutting-edge technology and data businesses.
Nearly a third of the economic benefit from TfL's supply chain activity was generated outside of London.
Challenges
- Transport for London (TfL) aimed to assess its economic influence and illustrate the extensive scope and nationwide distribution of its annual expenditures on suppliers in the UK.
- The study needed to provide robust economic impact estimates that would enable TfL to make its case for funding from the UK government more effectively.
- To trace the geographic reach of TfL’s supply chain more accurately, the study set out to enrich the invoice address information available from the TfL procurement database with further research on the expenditure sites of large suppliers.
Solutions
- Hatch worked collaboratively with TfL to explore the available sources of data and design the survey framework.
- We used the survey outputs carried out by TfL and additional information provided by them to enrich the core database, which was fed into our in-house input-output model.
- Case studies on selected capital programmes were included in the study to bring the economic impact estimates to life by tangibly highlighting the reach of TfL’s supply chain footprint outside London.
Highlights
- Evidencing the scale of the economic footprint of TfL’s supply chain expenditure and its reach across UK regions.
- Providing robust economic impact estimates, based on our established input-output modeling methodology.
- Putting the economic impact estimates into context, including by using case studies to bring the numbers to life.
- Nurturing our long-term relationship with the client through partnership working at each stage of the study.
“This independent research outlines the benefit that TfL provides to the wider economy and is vital to helping make the case for a long-term funding deal for our capital investment program. By showcasing the importance of our supply chain across the UK, we can demonstrate how investment in London’s public transport system benefits the wider UK economy. Hatch grasped the importance of this work early on with their discussions with us, which led to this clear and easily accessible report being produced.”
Project Numbers
£6.5 billion spend in the UK with 2,072 suppliers, of which about half (49%) were SMEs (Small Medium Enterprise).£5.9 billion in Gross Value Added (GVA) and 104,230 jobs supported UK wide.
Every £1 million of TfL supplier spend supported around 16 jobs.
Two thirds (66%) of TfL suppliers were based outside of London.