Investment in digital technology is set to increase UK GDP by £232 billion (6.9%) in 2040, according to a study by Virgin Media Business and the Centre for Economics and Business Research (Cebr).
The research, which examines how more digital ways of working can support the UK’s economic recovery from Covid-19, also found investment in technology could boost the economy by £74 billion in 2025.
Digital processes in the public sector should create efficiency gains and cost-savings which, when invested in improved services and new infrastructure, could create a boost worth £75 billion to national GDP by 2040. Investments to digitalise health and social care could be worth £33 billion alone, while transforming justice, central and local government could be worth a further £32 billion to the national economy, according to the report.
Cristian Niculescu-Marcu, director of economic analysis at Cebr, said: “The Covid challenges facing the UK and the entire world are extremely serious. The economic impacts alone fall far short of capturing the scale of the pandemic’s toll on people’s lives and wellbeing. Focusing on the economic implications however, history shows us that periods of economic hardship can help to catalyse technological progress and adoption, as businesses and other stakeholders seek to adapt to new realities.
“Within this research we have examined the potential economic impact of a wave of digital transformation, driven by the rollout of new ways of working and connecting. This could create an economic high road over the coming decades, helping the UK economy to grow while also having the flexibility to deal with future challenges”
Date published: February 15, 2021