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1、Urenco Capenhursts socioeconomic impact on the UK URENCO CAPENHURSTS SOCIOECONOMIC IMPACT ON THE UK ECONOMY DECEMBER 2024 Urenco Capenhursts socioeconomic impact on the UK ABOUT OXFORD ECONOMICS Oxford Economics was founded in 1981 as a commercial venture with Oxford Universitys business college to

2、provide economic forecasting and modelling to UK companies and financial institutions expanding abroad.Since then,we have become one of the worlds foremost independent global advisory firms,providing reports,forecasts,and analytical tools on more than 200 countries,100 industries,and 8,000 cities an

3、d regions.Our best-in-class global economic and industry models and analytical tools give us an unparalleled ability to forecast external market trends and assess their economic,social,and business impact.Headquartered in Oxford,England,with regional centres in New York,London,Frankfurt,and Singapor

4、e,Oxford Economics has offices across the globe in Belfast,Boston,Cape Town,Chicago,Dubai,Dublin,Hong Kong,Los Angeles,Mexico City,Milan,Paris,Philadelphia,Stockholm,Sydney,Tokyo,and Toronto.We employ 700 staff,including more than 450 professional economists,industry experts,and business editorsone

5、of the largest teams of macroeconomists and thought leadership specialists.Our global team is highly skilled in a full range of research techniques and thought leadership capabilities from econometric modelling,scenario framing,and economic impact analysis to market surveys,case studies,expert panel

6、s,and web analytics.Oxford Economics is a key adviser to corporate,financial,and government decision-makers and thought leaders.Our worldwide client base now comprises over 2,500 international organisations,including leading multinational companies and financial institutions;key government bodies an

7、d trade associations;and top universities,consultancies,and think tanks.DECEMBER 2024 All data shown in tables and charts are Oxford Economics own data,except where otherwise stated and cited in footnotes,and are copyright Oxford Economics Ltd.This report is confidential to Urenco and may not be pub

8、lished or distributed without their prior written permission.The modelling and results presented here are based on information provided by third parties,upon which Oxford Economics has relied in producing its report and forecasts in good faith.Any subsequent revision or update of those data will aff

9、ect the assessments and projections shown.To discuss the report further please contact:Andrew Logan: Oxford Economics 4 Millbank,London SW1P 3JA,UK Tel:+44 203 910 8061 Urenco Capenhursts socioeconomic impact on the UK 2 TABLE OF CONTENTS Executive summary.3 1.Introduction.5 2.Direct impact.9 2.1 Tu

10、rnover .9 2.2 Urenco Capenhursts contribution to GDP.10 2.3 Urenco Capenhursts contribution to employment.11 2.4 Wages at Urenco Capenhurst.11 3.Indirect impact through supply chain spending.13 3.1 Urenco Capenhursts expenditure on inputs of goods and services.13 4.Induced impact through wage consum

11、ption.17 4.1 The wages supported.17 4.2 Size of the induced impact.17 5.Total impacts.19 5.1 Urenco Capenhursts total impact on gross value added.19 5.2 Urenco Capenhursts total impact on employment.20 5.3 Urenco Capenhursts total impact on tax receipts.21 6.Urenco Capenhursts other contributions to

12、 the UK.23 6.1 Urenco Capenhursts investment in skills.23 6.2 Urenco Capenhursts impact on the local community.23 7.Conclusion.25 8.Appendix.26 Urenco Capenhursts socioeconomic impact on the UK 3 EXECUTIVE SUMMARY Urenco is a global supplier of enrichment services and fuel cycle products for the civ

13、il nuclear industry.Urenco is a trusted,long-term international supplier of uranium enrichment services,fuel cycle products and related solutions to the nuclear industry.Founded in 1970 by the governments of Germany,the Netherlands,and the United Kingdom,it has uranium enrichment facilities in each

14、of the three countries and the United States.It supplies enrichment services and fuel cycle products for use in nuclear power stations around the globe.This report commissioned by the company focuses on its Capenhurst site near Chester,UK,which forms part of the North West Nuclear Arc,a unique nucle

15、ar sector cluster spanning the North of England and North Wales.It quantifies the economic contribution that Urenco Capenhursts operations made to the UK economy in 2023.It assesses the impact of Urenco Capenhurst itself,and the economic activity stimulated by its procurement from its UK supply chai

16、n and by the payment of wages.The results are presented across three metrics:the contribution to UK GDP,employment,and tax receipts generated.Urenco Capenhurst also contributes to the UK economy by boosting its productive potential.It does so by enhancing the skills of its workforce through training

17、,and participating in the Richie programme to foster science,engineering,technology,and maths,or STEM careers among young people.Moreover,Urenco Capenhursts considerable export presence(71%of Urenco Capenhursts turnover in 2023 was generated by exports)helps to support UK jobs with these sales likel

18、y to boost the UKs ability to exercise soft power.URENCO CAPENHURSTS CONTRIBUTION TO UK GDP Oxford Economics estimates that Urenco Capenhurst supported a 547 million contribution to UK GDP in 2023.Some 256 million or 47%of this was generated by Urenco Capenhurst itself based on Oxford Economics anal

19、ysis,with the remainder supported along its supply chain and by wage-induced impacts.This means that Urenco Capenhurst has a GDP multiplier of 2.1.In other words,for every 10 million in GDP generated by the Capenhurst facility itself,another 11 million is generated elsewhere in the economy.We estima

20、te Urenco Capenhursts procurement stimulated a 174 million contribution to GDP along its UK supply chain in 2023.It purchased inputs of goods and service from 1,003 UK suppliers.Some 25%of its domestic procurement spend went to the North West of England.In 2023,Urenco Capenhurst and its suppliers ar

21、e estimated to have paid their combined staff 173 million in wages.This is estimated to have stimulated a 117 million contribution to GDP.URENCO CAPENHURSTS CONTRIBUTION TO UK EMPLOYMENT In 2023,Urenco Capenhurst supported 4,575 jobs around the UK.Urenco Capenhurst itself employed 951 people as at t

22、he end of 2023,21%of the estimated total,implying it had an employment multiplier of 4.8.This means that for every 10 people employed at the Capenhurst facility,its expenditure supported another 38 peoples jobs elsewhere in the UK.This multiplier is higher than Oxford Economics 2023 study of the wid

23、er civil nuclear industry where the employment Urenco Capenhursts socioeconomic impact on the UK 4 multiplier was found to be 3.3.1 This study defined the civil nuclear sector as including firms directly involved in the generation of nuclear power,and those in its“nuclear-specific”supply chain.Urenc

24、o employed 951 people at its Capenhurst site.To give an indication of scale this is approximately 1.5%of the total number of people estimated to be employed in the civil nuclear industry in the UK.URENCO CAPENHURSTS CONTRIBUTION TO UK TAX RECEIPTS In 2023,Urenco Capenhurst is estimated to have gener

25、ated tax revenues of 130 million.This would be sufficient to pay the annual salaries of over 4,050 nurses in the UK.Urenco Capenhurst itself paid 52 million in taxes to the Exchequer.Urenco Capenhurst is estimated to have a tax multiplier of 2.5.So for every 1 million it pays the Exchequer in tax,it

26、 supports another 1.5 million in tax payments around the UK economy.URENCO CAPENHURSTS CONTRIBUTION TO THE PRODUCTIVE POTENTIAL OF THE UK ECONOMY Urenco Capenhurst spent 600,000 on apprenticeships and sponsored education.In 2023,Urenco Capenhurst had 33 apprentices in learning,mostly between the age

27、s of 16 and 20 years old and a further 16 people taking part in further education.1 Nuclear Industry Association,January 2023.The Economic Impact of the Civil Nuclear Industry.Urenco Capenhursts socioeconomic impact on the UK 5 1.INTRODUCTION Urenco is a global supplier of nuclear fuel enrichment se

28、rvices and fuel cycle products for the civil nuclear industry.Urenco has served the nuclear fuel supply chain for over 50 years,equipping the business with the expertise to reliably deliver its services and solutions,which are critical for the clean energy transition.Urenco is one-third owned by the

29、 UK government,one-third by the Dutch government and one-third by German utilities RWE Power AG and PreussenElektra GmbH and has the benefit of four enrichment facilities in the UK,Germany,the Netherlands,and the United States.It supplies enrichment services and fuel cycle products for the civil nuc

30、lear industry globally and in 2023,supplied to over 50 customers all over the world,supporting the generation of carbon free energy in 19 countries which use nuclear power.The companys profile and importance has grown in recent years with increased emphasis on the role of nuclear energy in the clean

31、 energy transition and achieving energy security goals.Governments around the world have increasingly turned their attention to nuclear as a method of generating carbon-free electricity with the aim of meeting their climate targets.Nuclear is the second largest source of clean energy generation used

32、 today and will continue to play a critical role in providing baseload electricity.2 This is ever more evident given the climate crisis and the need to decarbonise economies,as well as the need for greater energy security and independence following the invasion of Ukraine in 2022.Urencos role in the

33、 global nuclear supply chain is evolving.In May 2024,the UK government awarded 196 million to Urenco to build a new uranium enrichment facility.3 This is to produce high-assay low enriched uranium(HALEU)fuel by 2031.This fuel type is used by more modern advanced nuclear reactors,including the small

34、modular reactors that are coming on line.This co-investment between Urenco and the UK Government is a significant step in the UKs domestic advanced nuclear fuel production capabilities-a market currently dominated by Russia as the only commercial producer of HALEU.Before that investment gets underwa

35、y,this study focuses on the economic contribution of Urencos site at Capenhurst in 2023.It is located approximately 10 km to the north of Chester and has several activities on site including:enrichment;chemical deconversion,and nuclear stewardship carried out by Urenco UK Limited,Urenco Chemplants L

36、imited,and Urenco Nuclear Stewardship Limited,respectively.This report will consider these activities in aggregate.It therefore looks at all the operations from the Capenhurst site.It excludes the operations of the companys head office in Stoke Poges,Buckinghamshire.This report provides an assessmen

37、t of the socio-economic contribution Urenco Capenhurst makes to the UK.The companys economic footprint is assessed using a standard means of analysis called an economic impact assessment.This technique enables a modelling of Urenco Capenhursts economic 2 International Energy Agency.2024.World Energy

38、 Outlook 2024 3 Department for Energy Security and Net Zero.2024.HALEU deconversion competition:scheme guidance.Urenco Capenhursts socioeconomic impact on the UK 6 impact in terms of its contribution to GDP,number of jobs supported,and tax revenues generated for the Exchequer.The estimates are made

39、for the calendar year 2023.A summary of the methodology is provided in Box 1,with more details in the Appendix at the end of this report.Urenco Capenhursts contribution to the UK is not limited to the activity that is supported by its ongoing operations.The report also investigates how Urencos inves

40、tment in apprenticeships,and other staff training act as catalysts for future economic activity,by enhancing the UK economys productive potential.The report is structured as follows:Chapter 2 explores the direct economic contribution Urenco Capenhurst made to the UK in 2023,through its own generatio

41、n of GDP,employment,and tax revenues at its Capenhurst site.Chapter 3 investigates the impact its procurement has in stimulating economic activity along its UK supply chain.It quantifies the gross value added,employment,and tax receipts it supports at suppliers.Chapter 4 analyses Urenco Capenhurst a

42、nd its suppliers payment of wages and how that impacts the consumer economy.Chapter 5 investigates the total economic contribution Urenco Capenhurst makes through its expenditure.Chapter 6 looks at how Urenco Capenhurst boosts the supply side of the economy through the training and upskilling it pro

43、vides its workers.Chapter 7 concludes.Urenco Capenhursts socioeconomic impact on the UK 7 BOX 1:INTRODUCTION TO OUR ECONOMIC IMPACT ANALYSIS The impact Urenco Capenhurst has on the UK economy is assessed using an economic impact assessment.This involves quantifying the companys economic contribution

44、 across three channels of expenditure(summarised in Fig.1,overleaf).The channels of impact are:Direct impact relates to the employment and economic activity generated at Urencos site in Capenhurst.Indirect impact captures the economic benefit stimulated by Urencos procurement of inputs of goods and

45、services from its UK supply chain.Induced impact comprises the wider economic benefits that arise from the payment of wages by Urenco Capenhurst,and the firms in its UK supply chains,to staff who spend their income in local retail,leisure,and other outlets.This approach enables us to build a picture

46、 of Urenco Capenhurst and its overall contribution to the UK economy across three key metrics:GDP or,more specifically,Urenco Capenhursts gross value added contribution to GDP.In simple terms,gross value added is the value Urencos output is sold for,minus the cost of bought-in goods and services use

47、d up to make the output.Employment,measured on a headcount basis for comparison with Office for National Statistics(ONS)employment data.Tax revenues,including corporation tax,business rates,income tax,and National Insurance contributions.The results are presented on a gross basis.They therefore igno

48、re any displacement of activity from Urencos competitors or other firms.Nor do they consider what the resources currently used by Urenco Capenhurst or stimulated by its expenditure could alternatively produce in their second most productive usage.Our analysis also looks at Urenco Capenhursts catalyt

49、ic impacts on the productive potential of both the UK and local economies.This explains how the companys efforts to improve the human capital of its staff boosts the supply side of the economy.These are largely treated in a qualitative way and cannot be added to the expenditure impacts summarised ab

50、ove.Urenco Capenhursts socioeconomic impact on the UK 8 Fig.1.Schematic of the channels of economic impact Urenco Capenhursts socioeconomic impact on the UK 9 2.DIRECT IMPACT This chapter investigates the economic contribution made by Urenco at its Capenhurst site,near Chester.It looks at what it co

51、ntributes to UK GDP,the numbers of people it employs,and the tax revenues it pays.2.1 TURNOVER Urenco Capenhurst earned 523 million in turnover in 2023.The majority(406 million or 78%)was generated by enrichment services at the Capenhurst site,with nuclear stewardship and chemical deconversion servi

52、ces generating the remainder.A large proportion of Urencos sales are to overseas customers;in 2023 71%of Urenco Capenhursts turnover(371 million)was generated by exports(Fig.2).To give some context to this figure,in 2023,the UKs nuclear exports of goods(e.g.nuclear reactors and radioactive materials

53、)amounted to 1.3 billion.4 However,this dataset does not cover nuclear services,such as enrichment services provided by Urenco.Fig.2.Share of turnover earned by Urenco Capenhurst in 2023 In 2023,the US was Urenco Capenhursts largest market,with one third of its revenues(171 million)from sales to US

54、based customers(Fig.3).The next largest market was mainland Europe(142 million),followed by the UK(116 million).4 UNCOMTRADE.We identified the following SITC codes relevant to the nuclear industry.71871:Nuclear reactors and parts thereof,71877:Nuclear reactors,71878:Fuel elements(cartridges),non-irr

55、adiated,for nuclear reactors,7189:Parts of nuclear reactors,52515:Uranium or plutonium,52517:Uranium and its compounds depleted in U235,thorium and its compounds,alloys,and other products containing uranium depleted in U235 or thorium,52519:Spent(irradiated)fuel elements(cartridges)of nuclear reacto

56、rs.Exports from the UK71%UK customers17%Other(eg internal transfers)12%Source:Urenco%shareUrenco Capenhursts socioeconomic impact on the UK 10 Fig.3.Urenco Capenhursts revenue by customer region Exporting offers the company significant opportunities to grow and also reduces risk.This brings advantag

57、es for the UK economy and,in turn,enhances the companys offering to its domestic customers.Selling overseas enables companies such as Urenco to benefit from economies of scale and scope.This allows it to spread its fixed costs over a wider range and number of goods and services,reducing its per-unit

58、 costs and making it more price competitive.This safeguards jobs in the UK,both at Urenco and in its domestic supply chains and through wage-consumption impacts.Finally,sales to foreign clients can boost Urencos brand name and reputation within the industry,helping to boost future business.These sal

59、es may also boost the UKs overall reputation and ability to exercise soft power.For example,in 2023,Urenco signed a long-term agreement to supply enrichment services for a state-owned nuclear power plant in Bulgaria.5 The plant generates more than a third of Bulgarias electricity and the agreement w

60、ill help support Bulgaria in becoming more energy independent.2.2 URENCO CAPENHURSTS CONTRIBUTION TO GDP We estimate that in 2023 Urenco Capenhurst made a 256 million contribution to UK GDP.The major contribution came from the 160 million gross operating surplus the company made(as measured by its e

61、arnings before interest,taxes,depreciation,and amortisation(EBITDA).Urenco Capenhurst paid 90 million in compensation to its employees,which included the payment of wages,pensions,social security contributions,bonuses,and benefits in kind(Fig.4).In addition,Urenco Capenhurst also contributed 6 milli

62、on in business rates in 2023.This is approximately 8%of total value of business rates received by Cheshire West&Chester Council in financial year 2023-24.6 5 Urenco,Press release,April 2023 6 Cheshire West&Chester Council,Budget Book 2023-24.17114211695USARest of EuropeUKRest of the world02040608010

63、0120140160180Source:Urenco million33%27%22%18%Urenco Capenhursts socioeconomic impact on the UK 11 Fig.4.Urenco Capenhursts direct contribution to UK GDP in 2023 To give an indication of scale,Urenco Capenhursts direct contribution to UK GDP is 2.5%of that made by all the firms,institutions,and othe

64、r economic actors in the Cheshire West and Chester local authority district where it is located.7 Alternatively,its GDP contribution is approximately 5%of that of the total UK civil nuclear industry.8 2.3 URENCO CAPENHURSTS CONTRIBUTION TO EMPLOYMENT As at the end of 2023,Urenco employed 951 people

65、at its UK Capenhurst site.To give an indication of scale this is approximately 1.5%of the total number of people estimated to be employed in the civil nuclear industry in the UK in 2021.9 The company provided employment across a wide range of skill levels and different job types.Some 62%of total emp

66、loyees were employed in the operations on the site,while 27%are employed in the technology division.A large number of contractors also worked on site over 2023.As Urenco Capenhurst pays for their services as part of its spend on inputs of goods and services,these are considered in the indirect impac

67、t in Chapter 3.2.4 WAGES AT URENCO CAPENHURST In 2023,Urenco Capenhurst paid a total of 53.7 million in basic salaries(excluding bonuses,pensions,and social security payments),with the median average basic salary amounting to 62,500.To put this in context,the median annual pay for all employee jobs(

68、full and part time)in the UK in 2023 was 29,669.The median wages that Urenco employees receive are more than double that of the Cheshire 7 ONS.2024.Regional gross value added(balanced)by industry:local authorities by ITL1 region.8 Nuclear Industry Association.2023.Delivering value:The economic impac

69、t of the civil nuclear industry.9 Nuclear Industry Association.2023.Delivering value:The economic impact of the civil nuclear industry.160906 or 2%Earnings before interest,tax,depreciation and amortisation(EBITDA)Employee compensationBusiness ratesSource:Urenco;Oxford Economics million or 62%or 35%U

70、renco Capenhursts socioeconomic impact on the UK 12 West and Cheshire local authority district and the wider North West region(Fig.5).10 The payment of high wages will drive consumer spending in the region which will help to boost the wider economy.Fig.5.Median annual earnings in 2023 10 ONS.2023.Ea

71、rnings and hours worked,place of residence by local authority:ASHE Table 8.62,50029,66929,38528,429Urenco CapenhurstemployeesUKCheshire West andChesterNorth West010,00020,00030,00040,00050,00060,00070,000Source:ONS;Oxford EconomicsUrenco Capenhursts socioeconomic impact on the UK 13 3.INDIRECT IMPAC

72、T THROUGH SUPPLY CHAIN SPENDING Urenco Capenhurst supports economic activity along its UK supply chain through its procurement spending.This expenditure stimulates gross value added,employment,and tax receipts at its suppliers,and those firms supply chains.3.1 URENCO CAPENHURSTS EXPENDITURE ON INPUT

73、S OF GOODS AND SERVICES In 2023,Urenco Capenhurst spent 229 million on inputs of goods and services.Of this,205 million or 90%was spent with UK suppliers(Fig.6).Imports from foreign suppliers provided the other 24 million,or 10%.The majority of the imports were sourced from suppliers in the United S

74、tates,Germany,and the Netherlands.Fig.6.Urenco Capenhursts expenditure on inputs of goods and services by country Urenco Capenhurst bought inputs from 1,003 different suppliers in the UK.They were located across the length and breadth of the nation.Forty-eight were located with the same local author

75、ity as Urencos Capenhurst site,namely Cheshire West and Chester and 239 more in the rest of the North West region.By value,2.7%of the spend is with suppliers in the same local authority and 25%in the rest of the North West(Fig.7).20510753United KingdomUSAGermanyNetherlandsRest of the worldSource:Oxf

76、ord Economics million*Figures may not sum due to roundingUrenco Capenhursts socioeconomic impact on the UK 14 Fig.7.Heatmap of Urenco Capenhursts procurement spend in the UK in 2023 In England,the spend takes place with suppliers that are disproportionately located in deprived areas.In 2023,Urenco s

77、pent 17.4%of its procurement budget with English suppliers in the 10%of local authorities ranked the most deprived by the English indices of deprivation(Fig.8).11 Of these local authorities,Salford,Manchester,and Nottingham are where Urencos procurement spend is the highest.Similarly,33.7%of Urencos

78、 procurement budget was spent with firms located in the 25%11 Ministry of Housing,Communities&Local Government.2019.English indices of deprivation 2019.Capenhurst site Urenco Capenhursts socioeconomic impact on the UK 15 most deprived local authorities.Procurement spend in deprived areas helps to re

79、duce regional inequalities because the spend supports local jobs.Moreover,economic activity in the area is further boosted through workers spending their wages in the local economy.Fig.8.Share of Urenco Capenhursts procurement from suppliers in England in 2023 This expenditure stimulated jobs,econom

80、ic activity,and taxes at the companys immediate suppliers and also along their supply chains,as the suppliers purchased parts and services in order to fulfil Urencos orders.We estimate Urenco Capenhursts procurement stimulated 174 million in gross value added along its UK supply chain in 2023.Of thi

81、s,64 million was within the business sector services,such as law,accountancy,consultancy,architecture,engineering,testing,scientific R&D,equipment rental,employment agencies,cleaning,and security.Another 28 million was spent on IT and other information services(Fig.9).Suppliers in electricity,gas,wa

82、ter supply,sewerage etc.were the third-largest beneficiaries(14 million).17.433.710%most deprived local authorities25%most deprived local authorities0510152025303540Source:Urenco;Oxford Economics%share of Urencos procurementUrenco Capenhursts socioeconomic impact on the UK 16 Fig.9.Gross value added

83、 stimulated at UK suppliers by Urenco Capenhursts procurement in 2023,by industry Urenco Capenhursts spend on inputs of goods and services from domestic suppliers stimulated 2,330 jobs in the UK.We estimate over 900 of these,or 41%,were at firms providing business sector services(Fig.10).Another 346

84、 jobs were supported in IT and other information services.A further 178 were in construction.Some of these people will work on site,so are likely to also spend money in the local economy.Fig.10.Employment stimulated at UK suppliers by Urenco Capenhursts procurement in 2023,by industry We estimate th

85、at the economic activity and employment stimulated by Urenco Capenhursts procurement in 2023 generated 48 million in tax receipts.642814121164433Other business sector servicesIT&information servicesElectricity,gas,&waterConstructionFinancial&insuranceWholesale&retailHuman health&social workTransport

86、ation&storageOther manufacturingMachinery&equipment,nec010203040506070Source:Oxford Economics million96434617897898072686758Other business sector servicesIT&information servicesConstructionHuman health&social workWholesale&retailFinancial&insuranceElectricity,gas,&waterEducationArts,entertainment,re

87、creationAccommodation&food services02004006008001,000Source:Oxford EconomicsPeopleUrenco Capenhursts socioeconomic impact on the UK 17 4.INDUCED IMPACT THROUGH WAGE CONSUMPTION The final channel of the impact on the demand side we consider is the induced impact.This describes the gross value added,e

88、mployment,and tax revenues in the UK by the wage-financed consumption of the firms workers and by workers in its supply chain.4.1 THE WAGES SUPPORTED In 2023,Urenco Capenhurst paid its staff 72 million in gross pay.After the payment of income tax and employee National Insurance contributions,the 951

89、 employees received 54 million which they could potentially spend.Using data on the average pay in each industry,we estimate the 2,330 workers Urenco Capenhursts procurement supported along its supply chain received 102 million in gross wages.12 The wages paid to Capenhurst staff by Urenco and the f

90、irms in its domestic supply chain were partially used to purchase goods and services.This consumer spending created demand at retail,leisure,and other outlets,and along their supply chains,which supported economic activity,jobs,and taxes.4.2 SIZE OF THE INDUCED IMPACT In 2023,the 3,280 staffs wage-f

91、inanced consumer spending is estimated to have supported a 117 million gross value-added contribution to GDP.Of this,34 million or 29%was supported in the real estate sector from the renting,buying,and selling of property.Another 15 million or 13%was stimulated in the retail and wholesale sector.The

92、 health industrys gross value added is estimated to have increased by 12 million.12 ONS.2019.Earnings and hours worked,industry by two-digit SIC:ASHE Table 4.Urenco Capenhursts socioeconomic impact on the UK 18 Fig.11.Induced GVA by Urenco Capenhursts procurement in 2023,by industry The wage-finance

93、d consumption is estimated to have supported 1,294 jobs in 2023,of which 296 were in the retail and wholesale sector and 107 in the hospitality sector.The stimulated economic activity and employment are estimated to have supported 30 million in tax payments.3415129854443Real estateWholesale&retailHu

94、man health&social workOther business sector servicesFinancial&insuranceAccommodation&food servicesTransportation&storageArts,entertainment,recreationElectricity,gas,&waterConstruction010203040Source:Oxford Economics millionUrenco Capenhursts socioeconomic impact on the UK 19 5.TOTAL IMPACTS The dire

95、ct,indirect,and induced impacts outlined in this chapter can be summed to quantify the total gross contribution Urenco Capenhurst made to the UK economy in 2023 through its expenditure.5.1 URENCO CAPENHURSTS TOTAL IMPACT ON GROSS VALUE ADDED In 2023,Urenco Capenhursts expenditure stimulated an estim

96、ated 547 million gross value-added contribution to UK GDP.Some 256 million or 47%was generated at the company itself.Its procurement stimulated another 174 million along its domestic supply chain(Fig.12).This indirect impact was 32%of the Capenhurst facilitys total impact on GDP.Its induced impact s

97、upported an estimated 117 million contribution to UK GDP,or 21%of its total.Urenco Capenhursts gross value-added multiplier was 2.1.Therefore,for every 10 million in gross value added generated at the companys Capenhurst site,it supported a further 11 million around the rest of the UK economy throug

98、h its expenditure.Fig.12.Urenco Capenhursts total impact on UK GDP in 2023 Analysed by industrial sector,258 million of the gross value added supported by the Capenhurst site in the UK was generated in the chemicals and pharmaceutical products sector(Fig.13).This was 47%of the contribution to UK GDP

99、,and included the activity generated by Urenco itself.The second largest gross value added contribution to GDP was supported in the other business services sector at 72 million,or 13%of the total.The IT and other information services was the third largest beneficiary.256256256256174174174117117Direc

100、tIndirectInducedTotal0100200300400500600Source:Oxford Economics million47%of total32%of total21%of total547Urenco Capenhursts socioeconomic impact on the UK 20 Fig.13.Gross value added supported by Urenco Capenhurst in 2023 by industrial sector 5.2 URENCO CAPENHURSTS TOTAL IMPACT ON EMPLOYMENT In 20

101、23,Urenco Capenhurst supported 4,575 jobs around the UK.The site itself employed 951 people or 21%of the estimated total.Its procurement is estimated to have supported another 2,330 people in employment along its supply chain or 51%of the total(Fig.14).Another 1,294 people or 28%owed their jobs to t

102、he induced impact.Fig.14.Urenco Capenhursts total contribution to employment in 2023 Urenco Capenhursts employment multiplier is estimated to be 4.8 at the UK level.Therefore,for every 10 people employed at the site itself,it supports another 38 in employment around the rest of the UK.This multiplie

103、r is higher than our 2023 study of the wider civil nuclear industry where the employment 2587237292219181615Chemicals and pharmaceutical productsOther business sector servicesReal estate activitiesIT and other information servicesWholesale&retailFinancial&insuranceElectricity,gas&waterHuman health a

104、nd social workConstruction050100150200250300Source:Oxford Economics million951 951 4,575951 2,330 2,330 1,294 1,294 DirectIndirectInducedTotal05001,0001,5002,0002,5003,0003,5004,0004,5005,000Source:Oxford EconomicsPeople21%of total51%of total28%of totalUrenco Capenhursts socioeconomic impact on the

105、UK 21 multiplier was found to be 3.3.13 This study defined the civil nuclear sector as including firms directly involved in the generation of nuclear power,and those in its“nuclear-specific”supply chain.Of the 4,575 jobs Urenco Capenhurst is estimated to have supported in 2023,1,095 or 24%occurred i

106、n the other business services sector(Fig.15).Another 963 were stimulated in the chemicals industry,which includes Urencos own employees at the Capenhurst site.The companys expenditure stimulated some 393 jobs in the health and social work sector.Fig.15.Employment supported by Urenco Capenhurst in 20

107、23 by industrial sector 5.3 URENCO CAPENHURSTS TOTAL IMPACT ON TAX RECEIPTS In 2023,Urenco Capenhurst supported tax receipts worth 130 million to the Exchequer.To give a sense of scale,this would cover the annual salary of 4,050 nurses in 2023.14 Of the tax receipts supported,52 million or 40%were b

108、y paid by the company itself or its staff through their income tax or National Insurance contributions.The economic activity and employment generated by the indirect and induced impacts are estimated to have generated 48 million and 30 million of tax receipts,respectively.13 Nuclear Industry Associa

109、tion,January 2023.The Economic Impact of the Civil Nuclear Industry.14 ONS.2023.Earnings and hours worked,occupation by four-digit SOC:ASHE Table 14.1,095963393366315225165157139Other business sector servicesChemicals and pharmaceutical productsHuman health&social workIT&other information servicesWh

110、olesale&retailConstructionAccommodation&food servicesArts,entertainment,recreationFinancial&insurance02004006008001,0001,200Source:Oxford EconomicsPeopleUrenco Capenhursts socioeconomic impact on the UK 22 Fig.16.Tax receipts supported by Urenco Capenhursts expenditure in 2023 525248483030DirectIndi

111、rectInducedTotal-101030507090110130150Source:Oxford Economics million40%of total37%of total23%of total130Urenco Capenhursts socioeconomic impact on the UK 23 6.URENCO CAPENHURSTS OTHER CONTRIBUTIONS TO THE UK Aside from the expenditure impacts it creates,Urenco Capenhurst also contributes to the UK

112、economy by boosting its productive potential.It does this through its investment in the training and education it provides its staff and students.Both boost the productive potential of the UK economy.6.1 URENCO CAPENHURSTS INVESTMENT IN SKILLS Urenco Capenhursts investments in staff training helps t

113、o boost the productive potential of the economy through the passing on of new knowledge and competencies.Some of this new knowledge may also be transferred to colleagues,as the recipient of the training will likely share some of their new skills with their co-workers.Training may also boost innovati

114、on as the skills and knowledge acquired may help the firm develop new products or knowledge or adapt more rapidly to the introduction of new technology or work processes.In 2023,Urenco Capenhurst spent some 600,000 on apprenticeships and sponsored education.At the end of 2023,Urenco Capenhurst had 3

115、3 people taking part in apprenticeships and 16 people taking part in further education with courses ranging from BTECs to masters level.Academic evidence suggests that apprenticeships play a pivotal role in establishing young adults careers with the impact of apprenticeships shown to significantly i

116、ncrease lifetime earnings and chances of being employed.15 Urenco Capenhurst also contributes to the UKs human capital through its work to sponsor STEM and other education through its CSR efforts discussed in the next section.6.2 URENCO CAPENHURSTS IMPACT ON THE LOCAL COMMUNITY Urenco has underlined

117、 its commitment to a sustainable future through its multiyear impact programme.Urenco Capenhurst has formed partnerships with charitable organisations focused around Chester and within an hours drive of the Capenhurst facility.Urenco Capenhurst support includes a wide range of activities including c

118、ash giving,in-kind contributions(such as the donation of equipment),and staff time through volunteering during work hours.Some of the causes Urenco and its staff support are:Chester Zoo:Urenco has a multi-year partnership with Chester Zoo to support its conservation research.The aim is to double the

119、 size of its current laboratory facilities to reinforce its science programme and increase its training capacity.This should enable the zoo to reach over 150,000 young people through different learning programmes.Chester Zoo,with Urencos support,will not only continue to be a leader in conservation

120、and preventing extinction but will also increase its global impact by influencing zoos across the world.Furthermore,Urenco funding will also assist Chester Zoo to create job opportunities for graduates and trainees.15 BIS 2011,The long term effect of vocational qualifications on labour market outcom

121、es.Urenco Capenhursts socioeconomic impact on the UK 24 University of Manchester:Led by the University of Manchester,the multi-year partnership will work with the Science&Engineering Education Research and Innovation Hub(SEERIH),Dalton Nuclear Institute and Scott Heath(Prof of Nuclear Chemistry)to s

122、upport a coordinated and focused STEM programme for pupils,teachers and students across primary,secondary and tertiary education.There will be a particular focus on engaging pupils from lower socio-economic areas.This partnership will enable students from a wide socioeconomic background to recognise

123、 their potential,find out more about sustainable solutions,raise their science capital and access innovative and rewarding careers.Teach First:Urenco is the first nuclear company to support STEM education through Teach First,an established and respected route to encourage and develop a more diverse

124、and inclusive pipeline of future STEM professionals.Through the partnership with Urenco,Teach First will be able to train and develop forty five new STEM teachers nationally over a three year period,as well as creating opportunities to engage with schools through coaching and site visits Urenco star

125、ted The Richie Education Programme to foster young peoples interest in science,technology,engineering,and maths(STEM).This programme enables schools and students to have access to informative hands on workshops and digital resources.In 2023,over 51,000 students engaged with the STEM online resources

126、.Teams from Urenco Capenhurst have also supported two local mental health charities.They produced engineering drawings and fitted out the rooms for Flynns Port in the Storm in Ellesmere Port.This is a community based mental health charity centre,and mental health crisis cafe.From the facility the ch

127、arity provides counselling and mental health services to patients throughout Cheshire West and Chester,Cheshire East,the Wirral and Merseyside.Urenco Capenhurst also supports Men in Sheds,a charity aimed at boosting mental health,as people come together to repair and repurpose items,and do other vol

128、untary activity.Urenco Capenhurst regularly donates to Claire House Charity Hospice,based in the Wirral and Liverpool,which helps seriously and terminally ill children.Other regular donations have been made to the Hospice of the Good Shepherd in Chester.Urenco Capenhursts socioeconomic impact on the

129、 UK 25 7.CONCLUSION This report has explored how Urencos operations at its Capenhurst site impact the UK economy.We estimate that for the year 2023 Urenco,an international supplier of enrichment services and fuel cycle products for the civil nuclear industry,supported a contribution of nearly 550 mi

130、llion to UK GDP.Its operations and supply chain supported over 4,500 jobs across the country.This comprised the 951 employees at Urenco Capenhurst and more than 3,600 jobs in the rest of the economy,sustained by both the companys procurement of goods and services as well as the wage-induced spending

131、 it supports.We estimate Urencos Capenhurst operations raised 130 million in tax revenues,enough to pay the annual salaries of some 4,050 nurses.As well as contributing towards economic growth,Urencos Capenhurst facility supports employment by providing highly skilled jobs.This means that Urenco can

132、 pay its staff well,with employees on average earning a basic salary of 62,500,more than the twice the UK average of 29,895.This is especially important in the North West of England,which is home to some of the countrys more socio-economically deprived districts.Urenco Capenhurst also supports reduc

133、ing regional inequalities through its supply chain.In 2023 it spent some 230 million with over 1,000 suppliers,of which almost a quarter were in the North West of England.In 2023 it spent a third of its procurement budget with firms located in the 25%most deprived local authorities.Urenco is investi

134、ng in the next generation of workers at its Capenhurst site via apprenticeships and further education.The 600,000 it spent in 2023 supported 33 people within apprenticeship schemes and 16 people taking part in further education with courses ranging from BTECs to masters level.Apprenticeships are par

135、ticularly important as independent research has shown that they can boost participants chances of getting a job and their lifetime earnings when in work.While this study has looked at the impacts the companys existing operations in Cheshire,the role that Urenco plays in the global nuclear chain is a

136、bout to change.In May 2024 it was awarded 196 million by the UK Government to construct an advanced nuclear fuels facility to produce high-assay low enriched uranium(HALEU).The new facility will produce fuel from 2031 which will help accelerate the development of a civil HALEU commercial market and

137、in-turn the development of the next generation of nuclear reactors This means the company is well placed to be part of the next phase of nuclear power generation and will make a contribution to the countrys energy security by reducing the reliance on Russia as the currently sole supplier of HALEU co

138、mmercially.As well as continuing to support the UK economy,Urenco will be well placed to safeguard the UKs national interest through its development of new nuclear fuels.Urenco Capenhursts socioeconomic impact on the UK 26 8.APPENDIX ECONOMIC IMPACT MODELLING Economic impact modelling is a standard

139、tool used to quantify the economic contribution of a company or sector.Impact analysis traces the economic contribution of a company through three separate channels:Direct impactrefers to the economic activity undertaken by Urenco at its Capenhurst site in the UK.Indirect impactconsists of activity

140、that is supported as a result of Urencos procurement of goods and services by Urenco in the UK,plus the further purchases of those UK suppliers,and so on.Induced impactreflects activity supported by the spending of wage income by both“direct”and“indirect”(supply chain)employees.Fig.17.Calculating th

141、e total economic impact through the three channels Direct impacts Urenco Capenhursts direct impact is calculated using the so-called income approach to national accounting.This means that we sum the components of income to obtain an estimate of the companys gross value-added contribution to GDP.For

142、Urenco,the relevant income components are its compensation of employees and EBITDA measure of profits.To this we add its payments of business rates as a production tax to get GDP.Urenco Capenhursts socioeconomic impact on the UK 27 Indirect and induced impacts Indirect and induced impacts are estima

143、ted using an“input-output”model.This type of model sets out the goods and services that UK industries purchase from one another in order to produce their output(as well as their purchases from abroad).These tables also provide detail on the spending patterns of UK households and indicate whether thi

144、s demand is met by UK production or imported products.In essence,the tables show who buys what from whom.Fig.18 demonstrates a stylised input-output model.Using details of these linkages from the input-output tables,Oxford Economics constructed a bespoke global impact model which traces the intermed

145、iate consumption impact,and capital good consumption impact,attributable to Urenco(this is known as the Leontief manipulation).This impact model quantifies all rounds of subsequent purchases along the supply chain.These transactions are translated into GDP contributions,using UK-specific ratios of g

146、ross value added to gross output,sourced from the UK input-output table.Once we have obtained results for output and gross value added,we estimate employment using productivity estimates for each industry.These are sourced from the ONSs Annual Business Survey and Business Register and Employment Sur

147、vey.16 The scale of tax receipts generated along Urencos supply chain and stimulated by its payments of wages(i.e.,the indirect and induced impacts)are estimated from a range of official data sources.Average wages of employees in each industry are sourced from the ONSs Annual Survey of Hours and Ear

148、nings17.Income tax and National Insurance Contributions allowances and rates are sourced from HMRC.Effective corporation tax rates are sourced from HMRC.18 16 ONS.2024.Non-financial business economy,UK:Sections A to S.17 ONS.2023.Earnings and hours worked,industry by two-digit SIC:ASHE Table 4.18 HM

149、RC.2023.Corporation tax statistics 2023.Urenco Capenhursts socioeconomic impact on the UK 28 Fig.18.A stylised input-output model We used the input-output table for 2020,produced by the OECD,for this analysis19.This was the most recent global input-output table at the time of modelling.19 OECD.2024.Inter-Country Input-Output tables.Urenco Capenhursts socioeconomic impact on the UK