Positive impact of van rental and leasing industry on UK economy
Giving due credit to the car and van sectors of the vehicle rental and leasing industry, it was recently announced that it supports over 183,000 jobs and contribute around £14bn per year to the UK economy. According to a new report commissioned by the BVRLA from respected research organisation Oxford Economics, the recent study provides some robust, independent data on the size, scope and importance of the vehicle rental and leasing sector.
In terms of pounds per year to the UK economy, the £14bn mentioned above is equivalent to £1 in every £90 of UK GDP or the combined local economies of Bath and Bristol. This figure takes into account the operations of the industry itself, the UK-made vehicles and engines it purchases, the activity of UK dealerships and its impact on the used car market. In the process, the sector generates around £2.8 billion of tax revenue per year.
In the job stakes, the industry employs 38,000 people directly and a further 145,000 people through wider supply chain and consumer spending effects. The total employment supported by the industry is equivalent to 1 in every 175 workers in the UK.
Also, according to the BVRLA's latest press release announcing the results of the study, the automotive sector is one of the UK’s few manufacturing success stories and vehicle rental and leasing companies are among its largest customers, purchasing an estimated 220,000 vehicles in 2011. This is 15% of total output but a massive 82% of UK vehicles sold to domestic customers. This expenditure is estimated to have supported a £2.4 billion contribution to GDP, 52,000 jobs and £810 million in tax receipts.
Researchers at Oxford Economics have established that the sector makes a major contribution to the efficiency with which the UK economy works. As well as giving businesses access to modern, fuel-efficient vehicles, fleet management services and lower capital costs, vehicle leasing can also provide a range of ‘housekeeping’ services, including maintenance, insurance and road tax – freeing up resources and working capital for other tasks. It reaches every sector of the economy, from manufacturing and construction to retail and health. Two thirds of the industry’s business customers are SMEs (small and medium-sized enterprises).
If you would like to learn more, a BVRLA summary of the report can be downloaded here.
In terms of pounds per year to the UK economy, the £14bn mentioned above is equivalent to £1 in every £90 of UK GDP or the combined local economies of Bath and Bristol. This figure takes into account the operations of the industry itself, the UK-made vehicles and engines it purchases, the activity of UK dealerships and its impact on the used car market. In the process, the sector generates around £2.8 billion of tax revenue per year.
In the job stakes, the industry employs 38,000 people directly and a further 145,000 people through wider supply chain and consumer spending effects. The total employment supported by the industry is equivalent to 1 in every 175 workers in the UK.
Also, according to the BVRLA's latest press release announcing the results of the study, the automotive sector is one of the UK’s few manufacturing success stories and vehicle rental and leasing companies are among its largest customers, purchasing an estimated 220,000 vehicles in 2011. This is 15% of total output but a massive 82% of UK vehicles sold to domestic customers. This expenditure is estimated to have supported a £2.4 billion contribution to GDP, 52,000 jobs and £810 million in tax receipts.
Researchers at Oxford Economics have established that the sector makes a major contribution to the efficiency with which the UK economy works. As well as giving businesses access to modern, fuel-efficient vehicles, fleet management services and lower capital costs, vehicle leasing can also provide a range of ‘housekeeping’ services, including maintenance, insurance and road tax – freeing up resources and working capital for other tasks. It reaches every sector of the economy, from manufacturing and construction to retail and health. Two thirds of the industry’s business customers are SMEs (small and medium-sized enterprises).
If you would like to learn more, a BVRLA summary of the report can be downloaded here.
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