The UK could generate £93 billion in Gross Value Added (GVA) by taking steps towards a circular economy, new WRAP report finds.
The report by global environmental action NGO WRAP found that circular economy activities, such as repair, remanufacturing, reuse, and recycling, could support 550,000 new jobs across the UK.
In 2024, the circular economy sectors supported almost 559,000 jobs across the UK, generating more than £53 billion in GVA.
POWERING GOOD GROWTH – The Circular Economy Opportunity for Jobs, Manufacturing and Every Region of the UK found the circular economy continues to provide a substantial employment base, support domestic resource flows, and strengthen economic resilience.
Published the day after the Budget, the report suggests that by 2035, even a modest progress towards a more circular economy could unlock almost £4 billion of additional economic value.
The findings suggest that circular economy activities can help spread economic opportunity across the UK by creating jobs, strengthening local supply chains and attracting investment into communities undergoing industrial transition.
Commenting on the report, Catherine David, WRAP CEO, said: “There are an additional 550,000 new jobs that the UK could create if we take steps to grow the circular economy – this could be worth £93bn GVA to the UK’s economy by 2035.”
“By creating the right long-term policy and investment environment, we can support key sectors to grow, with new jobs in repair, reuse and remanufacturing.”
“Not only will these actions create economic growth, they will strengthen the UK’s resilience, making our businesses and institutions less reliant on imported resources, as well as making positive contributions to people’s living standards.”
By creating the right long-term policy and investment environment, we can support key sectors to grow…
WRAP says that the circular economy remains a ‘largely untapped’ source of productivity and regional economic development.
The report found that the scale of opportunity increases significantly when moving into higher value activities like remanufacturing, repair and reuse, and leasing or rental business models – as well as developing biorefining industries.
WRAP warned that future growth shouldn’t be taken for granted as its analysis shows circular economy employment effectively remained static between 2019 and 2024, only increasing from 557,639 to 558,886 jobs.
While some, earlier research identified strong, sustained employment growth across the circular economy, the latest figures suggest a period of consolidation rather than expansion.
In the UK, Wales recorded the strongest growth between 2019 and 2024, with jobs increasing from 24,075 to 26,600 – approximately 10.5% growth.
While England saw employment fall from 473,315 jobs to 467,175 jobs in 2024, a decline of approximately 1.3%.
In WRAP’s report, it sets out a series of pathways by which the UK could accelerate circular economy activities and realise wider benefits by 2035.
The scenarios show a basic Incremental Progress up to a Circular Economy Transformation, which WRAP found could add +37 percentage points to the UK’s recycling rate and increase remanufacturing by 50%.
To accelerate future circular economy expansion, WRAP recommends that England builds on lessons from Scotland, Wales and Northern Ireland to deliver the long-delayed Circular Economy Growth Plan.
The report recommends that governments:
- Embed circular economy objectives within industrial and economic policy.
- Strengthen support for repair, refurbishment and reuse.
- Improve measurement and reporting of circular economy activity.
