Sky boosts UK economy by £5.4bn in 2011

Sky contributed more than £5 billion to the UK economy last year, according to an independent study published by Oxford Economics.

The economic consultancy firm showed the satellite broadcaster boosted the country's GDP to the tune of £5.4 billion in 2011, with the company generating sales of £6.4 billion across the year. Of this sum, more than 75 per cent was retained in the UK.

Its direct GDP contribution of £2.2 billion is equivalent to about 40 per cent of the full amount provided by the entire national TV and radio creative sector.

For every £1 billion GDP boost directly generated by Sky, the rest of the economy benefits by a further £1.4 billion through the purchase of goods and services, and spending from employees.

Jeremy Darroch, chief executive of Sky, said: "We have transformed UK consumers' experience of television and home communications, while generating significant returns for our shareholders and contributing positively to the UK economy as a whole."

The report comes three months after Regeneris Consulting predicted that BT's investments in fibre optic broadband will deliver a £20 billion boost to the London economy over the next 15 years.