The reach and economic impact of TfL's supply chain

By Tim Fanning and Maria Ioannou | November 22, 2023

What economic impact does Transport for London’s (TfL’s) supply chain spending have on the UK? How do regions outside London benefit? Hatch’s analysis and economic modeling sheds light, providing useful insights and robust estimates of the jobs and economic value supported by TfL’s extensive supply chain.

TfL invests multiple billions of pounds every year in maintaining its transport network throughout the Capital, and in new capital projects to support economic growth. In making its case for funding from the government, TfL wanted to understand the scale and geographical distribution of its supply chain and the economic benefits that it supports throughout the UK. TfL asked Hatch to provide a detailed analysis and economic impact assessment.

The mandate relied on Hatch’s analytical capabilities using input-output modelling to assess the detailed multiplier effects of expenditure and measuring the economic benefits of transport investment.

Elizabeth line oversite development – Farringdon West
Elizabeth line oversite development – Farringdon West (Photo credit TfL)

Using an input-output model for the UK and its regions, Hatch estimated the number of jobs supported throughout the entire supply chain and the associated contribution to GDP. This quantified the impacts within TfL’s direct suppliers, as well as the subsequent multipliers arising through subsequent tiers of the supply chain, and from employee expenditure. We worked with TfL through the summer to extract relevant data and to augment this with further survey analysis to determine the sectoral and geographic distribution of expenditure.

The analysis looked at regional and national economic impacts, as well as delving into the supply chain at the level of individual parliamentary constituencies.

Who should read this paper:

This report will be insightful for anyone interested in the economic impact of sustained investment in public transport systems. It is a valuable resource for:
  • Policymakers
  • Economists
  • Individuals concerned with regional development and job creation in the UK.

In our report, we:

  • Delve into the economic impact of TfL's expenditure with suppliers during the 2022/23 financial year.
  • Provide a detailed analysis of how TfL's investments benefit the UK economy, support jobs, and benefit regions outside of London.

Elizabeth line signage in production at AJ Wells & Sons
Elizabeth line signage in production at AJ Wells & Sons (Photo credit TfL)

Key findings:

TfL invested £6.5 billion in the UK in 2022/23, resulting in £5.9 billion in Gross Value Added (GVA) and supporting over 100,000 jobs across the country. Some of the headlines are shown in the infographic.

TFL Supplier Impact


Download today:

For a more comprehensive understanding of these findings, read the full Hatch report today.

Transport for London Supply Chain: Economic Impact Assessment 2022/23


About Transport for London
TfL are the integrated transport authority responsible for meeting Mayor Sadiq Khan's strategy and commitments on transport in London. They run the day-to-day operation of the Capital's public transport network and manage London's main roads. Tfl is guided by the Mayor's Transport Strategy and its target that 80% of all journeys will be made on foot, by cycle or using public transport by 2041. They use technology and data to make journeys easier. Oyster and contactless payment cards and information in different formats help people move around London.