David Cameron's much-touted digital economy is taking off while the rest of the economy lags behind.
A study by Barclays found digital businesses experienced 11.4 per cent compound growth annually over the past three years, compared with just 0.2 per cent for the economy as a whole. It means the UK's online sector is growing 57 times faster than the economy.
Sean Duffy, head of technology, media and telecoms at Barclays, put the growth rate down to the convenience many online businesses offer. He said: "You don't get caught up in queue in a shop or on a call centre phone line." The report found firms got a particular boost from smartphones with mobile sites or apps on average generating 27.8 per cent of revenue.