A new report has revealed the significant economic contribution of British Muslims to the UK economy, while also highlighting the growing risk of emigration due to religious discrimination and dissatisfaction. The report, titled “The Economic Contribution of British Muslims to the UK’s Growth and Prosperity, and the Risk of Exodus”, was released today and calls for urgent action to address the challenges facing this community.
The findings show that British Muslims contribute over £70 billion to the economy each year. The workforce alone generates £42 billion, while Muslim-owned businesses add between £16.3 billion and £24.7 billion annually. In addition, charitable donations and volunteer efforts contribute a further £2.4 billion.
British Muslims are also integral to vital public services, particularly the NHS, where they hold over 46,000 roles. This workforce is essential in sectors like healthcare, education, and transport.
The UK has also established itself as the Islamic finance hub of the West, with UK-based Islamic banks controlling 85% of the European market, which is valued at £7.5 billion.
However, the report warns of a growing trend of emigration among British Muslims. They are 50% more likely than the average Briton to consider leaving the country. The wealthier segment of the community, earning more than £62,000 per year, is 75% more likely to contemplate emigrating. The most commonly cited reasons for this are rising religious discrimination and the cost-of-living crisis.
Of particular concern is the risk of a “brain drain,” with highly skilled professionals and entrepreneurs potentially leaving the UK. The report estimates that this could cost the country between £234 million and £1.1 billion annually in lost tax revenue over the next decade.
Religious discrimination was a key factor for 41% of British Muslims who are considering emigration. Many feel that systemic issues in the workplace and wider society are driving them away. The report warns that unless these issues are addressed, the UK could lose vital talent and economic contributions.
Rt. Hon. Dominic Grieve KC, who authored the foreword to the report, emphasised the importance of recognising and addressing these challenges. “The contributions of around four million British Muslims to the life and wellbeing of the United Kingdom are considerable, but too often unappreciated. This report highlights how significant this contribution has become to both our country’s economy and supporting wider society. But it also shows that barriers and discrimination faced by British Muslims are at risk of inhibiting that contribution,” he said.
The report urges policymakers to take action, with recommendations including increased investment in Muslim entrepreneurship and industries like halal tourism and Islamic finance, which could generate billions for the economy. It also calls for measures to tackle religious discrimination and to improve the inclusivity of workplace environments.
Other recommendations include the inclusion of religion and beliefs in the Race Equality (Equal Pay) Bill, improvements in data collection on faith communities, and greater support for the philanthropic efforts of Muslim charities to help bolster public services.
