The Economic Impact of the BBC in the West Midlands
City-REDI used the SEIM-UK model to help BOP Consulting produce a report for the BBC to help understand its economic impact in the West Midlands.
The BBC, as part of its Across The UK (ATUK) initiative, was seeking to broaden its regional economic impact beyond London and the South East. As part of the ATUK programme, the BBC sought to understand the economic impact of its current planned investments in the West Midlands Region.
Working with BOP Consulting, City-REDI used the SEIM-UK model to help understand the economic contribution of the BBC to the West Midlands. The SEIM-UK model was used to estimate the GVA and employment impacts arising from the planned investments, notably with the new Tea Factory development. A key consideration was understanding the extent to which the impact of the BBC investments in the region was retained within the West Midlands.
To assess the impact of the BBC’s investments in the region between 2021 and 2031, scenarios were developed to estimate the economic impact of different BBC investments (commissioning and capital) against a baseline scenario. Separately, the research built an econometric model to assess the likely relationship between a strengthened BBC presence in the West Midlands and the growth of the Creative Industries in the region.
Findings
The report highlights that the BBC’s investments are set to deliver a significant economic boost to the West Midlands. Between 2021 and 2031, these investments are projected to generate an additional £282 million in Gross Value Added (GVA), representing a 44% increase compared to the BBC’s baseline impact.
By 2031, BBC activity is expected to support 1,880 full-time equivalent (FTE) jobs across the region — with 910 of these directly attributable to the new investments. This marks a 94% uplift from the original baseline.
The enhanced investment is also anticipated to strengthen the region’s creative cluster, potentially leading to the emergence of 224 new creative firms. By 2031, this could result in 7,603 FTE jobs in the creative industries — an 18% increase over what would have been expected without the additional BBC investment.
Impact
The report highlighted the BBC’s vital role in the West Midlands, prompting renewed recognition from both the broadcaster and regional leadership. Shortly after its release, BBC Director-General Tim Davie and West Midlands Mayor Richard Parker signed a landmark agreement, marking the BBC’s most significant commitment to the region in a decade.
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The Economic Impact of the BBC in the West Midlands