The Economy

I read that illegal downloads are costing the British economy £12 billion a year?
Apart from the obvious fact that the majority of illegal downloads are of songs, films, games that you wouldn't buy anyway, it seems to assume that the money you save isn't being spent on anything else.
Surely most of us use the money we save from downloading illegaly to buy life's little luxuries like food, rent, gas, electric, council tax, mortgages etc which as far as I know contributes to the British economy doesn't it?