Logistics UK: Logistics "doubles your money" for the UK economy. Every £1 of economic activity that the logistics sector generates directly creates a further £1.04 across the wider economy. That is the headline finding of new research from business group Logistics UK, produced in association with Capital Economics. The report also suggests that a 1% increase in logistics' share of the economy could attract £30 billion of foreign investment into the UK. That equates to more than £1,000 per household. The research shows that the sector underpins £356 billion of economic activity, 5.3 million jobs and £65 billion in tax revenues. It also enables more than £1 trillion of international trade every year. A message for the Chancellor. Independent macroeconomists at Capital Economics launched the modelling today (27 October) at the Houses of Parliament, on the eve of the Budget. The analysis examines the indirect, induced and catalytic impact of the logistics sector on the UK economy. It shows that the sector's influence reaches well beyond its £175 billion direct annual contribution.[1] Logistics businesses and workers add a further £181 billion each year through their own personal spending. "With the Budget imminent, my message to the Chancellor is that the logistics sector doubles your money," says Logistics UK's Chief Executive, Ben Fletcher, "with every £1 of economic activity generated by its sector delivering a further £1.04 through its supply chain and employee spending. "When considered alongside the sector's direct financial contribution, significant tax contributions and role as a major employer, it is clear that logistics is not simply a critical sector in its own right, but an enabler of prosperity across the whole economy. These findings demonstrate why supporting the conditions for logistics businesses to invest, grow and operate efficiently should be a top priority for the government as it seeks to boost growth in every postcode." Supply chains and employee spending. The report, UK logistics: a critical driver of growth and investment, sets out the sector's wider impact in detail. Spending by logistics businesses with their UK suppliers supported over £90 billion of gross value added (GVA) across the economy in 2024. It also supported 1.5 million jobs. Five sectors each gained more than £10 billion in GVA from this activity: transport, administrative services, professional services, finance and manufacturing. Logistics employees add to the total through their own spending. They buy goods and services from UK businesses, and this "induced" activity contributed another £90 billion in GVA in 2024. It supported a further 1.1 million jobs. Billions for the Exchequer. Capital Economics found that the logistics sector contributes £30 billion a year in tax revenue. The Exchequer receives a further £34 billion from spending by logistics businesses and their workers. Together, these figures give the Treasury a clear financial reason to back the sector. A boost for foreign investment. The research also identifies a significant investment dividend from a strong logistics sector. Alongside the gains in GVA, tax revenue and jobs, the analysis quantifies the well-documented link between a thriving logistics sector and foreign direct investment (FDI). FDI is a key driver of productivity, innovation and economic growth. The modelling suggests that a one percentage point increase in logistics' share of total GVA is associated with a one percentage point increase in FDI as a share of total GDP. That is equivalent to a £30 billion boost to the economy, or more than £1,000 for every UK household. "International companies invest in countries where goods move efficiently," continues Fletcher. "Reliable supply chains with good transport networks, warehousing capacity, ports and airports all reduce costs, increase profits and expand market access, and investors know that. To get growth going, we must ensure the logistics sector has the capacity, resilience and infrastructure needed to drive growth and attract investment from home and abroad."

SMEs that access finance 70% more likely to succeed. June 16, 2026 Startup Magazine's editorial team delivers independent, expert-led coverage of the... New research from Capital Economics, commissioned by SME lender iwoca, finds that small businesses receiving finance have more of a chance to build lasting, successful companies. The analysis finds iwoca's SME customers are 70%, or 1.7x, more likely to remain trading after three years than the UK average. According to the Companies House Business Register, the majority of UK SMEs fail within five years from incorporation, with other published estimates suggesting that only 10% survive after ten years. This analysis, based on Companies House data matched against iwoca's loan book, tracks the trajectory of businesses incorporated between 2020 and 2025 (over 23,000 unique businesses). Eight in ten (80%) firms that were incorporated in 2021 and received an iwoca loan in 2022 were still on the Companies House register in 2025. This stands in stark contrast to just 46% of all UK businesses incorporated in the same year, pointing to a higher likelihood of successful business outcomes after receiving a loan. Specialist lenders filling gap left by traditional banks. Specialist lenders like iwoca provide funding to smaller businesses that can't get the support needed from traditional banks. Cash flow is a particularly persistent barrier to growth for these businesses, with almost half (48%) reporting to have cash flow issues in a recent quarterly survey from Intuit QuickBooks. Even where bank finance could be available in principle, speed is a problem. Traditional lenders can take more than 20 to 30 working days just to make a decision, meaning many SMEs lose commercial opportunities before receiving a response. Helping to fill this critical success gap are challenger banks, specialist banks and non-bank lenders. They now account for 68% of UK gross SME lending, a growing market share from 39% in 2012. iwoca's contribution to the UK economy. Since launching in 2012, iwoca has grown rapidly, serving an expanding share of SME finance demand. In the 12 months to January 2026, iwoca's lending supported an estimated £3.5 billion of UK GDP. In the same time frame, it supported over 51,600 jobs, an increase on last year's by 3.5%, in addition to stimulating £1 billion in tax revenues. For every £100 of iwoca lending deployed, £230 of GDP is supported across the economy (a 2.3x multiplier). iwoca's reach extends across the whole of the UK: 79% of SMEs funded by iwoca are based outside London, with disproportionately large impacts in the North West, East of England, West Midlands and Yorkshire and Humber. Christoph Rieche, CEO and co-Founder of iwoca, said: "When 99.9% of the UK's businesses are SMEs, they act as an important proxy for broader economic health. Finance for these businesses goes a long way - iwoca's loans have generated £13 billion in GDP in under 15 years, and supported over 51,600 jobs in the UK in the last year alone. Small businesses with real potential are being held back because many can't access the finance they need at the right moment, it's certainly not a lack of ambition. What this research shows is that when finance is delivered, businesses are much more likely to weather difficult periods and succeed over the longer term. With better financial support, SMEs tend to grow revenues, hire, build something sustainable, and contribute substantially to the economy." Janine Hirt, CEO of Innovate Finance, said: "Fintech SME lending was a novel disruptor over a decade ago, and today, it has grown to be necessary financial infrastructure. iwoca's research shows what this means in practice - for hundreds of thousands of UK SMEs, specialist lenders are no longer a fringe option, but often one of the only ways to access finance reliably, grow, and keep contributing to the economy. The fact that 68% of UK SME lending now flows through challenger and specialist lenders shows that fintech players have become a mainstay of the SME lending market and a driver of growth." Andrew Evans, Deputy Chief Economist at Capital Economics, said: "The scale of the difference in business outcomes between iwoca customers and the wider business population is quite striking. Businesses that received an iwoca loan in their first year were 70% more likely to still be trading three years on, and the gap holds across different incorporation years and stages of company maturity. The evidence is clear: flexible, accessible lending is associated with growth beyond individual firms - and with the jobs, output and tax revenues that benefit the wider economy."