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
£6B
Total supplier spending by TfL in FY23/24
92,580 Jobs
Annual full-time equivalent (FTE) jobs supported across the UK
£5.3B GVA
Gross Value Added generated through TfL’s supply chain
62% SMEs
Share of TfL suppliers that were small or medium-sized enterprises
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
- Conducted a detailed economic impact assessment of TfL’s FY23/24 supplier spending .
- Measured direct, indirect, and induced impacts on employment and GVA across the UK.
- Analyzed supplier data by region, sector, and business size to highlight SME and regional contributions .
- Evaluated the economic benefits of major capital projects like Bank Station, Barking Riverside, and Rail Engineering Workshops .
Highlights
- £809M spent in low-carbon economy sectors with 961 UK suppliers.
- £580M invested in technology and digital innovation.
- 63% of suppliers were based outside London.
- 265 apprenticeships supported outside London.
- Major regional impacts in Exeter, Reading, Manchester, and Derby.
- Capital projects like Bank Station Upgrade, Barking Riverside Extension, and Rail Engineering Workshops delivered significant local economic benefits.
“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.