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BSkyB defends £5.4bn contribution to UK economy

BSkyB contributes £5.4 billion to UK GDP, supports 120,000 jobs and generates £2.3 billion in tax contributions, according to an independent report.

The broadcaster commissioned the study to coincide with Ofcom’s investigation into whether the company is “fit and proper” to own a broadcasting licence.

Ofcom launched an examination of phone hacking by News International in April 2011, which is a subsidiary of News Corporation - which also owns 39.1% of BSkyB.

The report compiled by Oxford Economics found that BSkyB generated a “considerable” tax revenue of £911 million in 2011, £337 million of which was through corporation tax and business rates, while £604 million came through customers’ VAT payments and staff employment taxes.

It is estimated that the company generates a total of £2.3 billion in tax, which which Sky believe is “ relatively large to other similarly-sized corporates operating in the UK“.

BSkyB chief executive Jeremy Darroch said: “We hope that Sky’s story provides a good example of the important contribution that a successful British company can make,” said Darroch.

Sky says its revenues were £6.4 billion last year with 75% spent on services in the UK marketplace.

Sky employs 22,800 people in full or part time roles, whilst also supporting a further 118,600 UK jobs

This was posted in Bdaily's Members' News section by Ruth Mitchell .