More than 7% of the UK's national income comes from Internet-related businesses, according to a new report commissioned by Google and conducted by the Boston Research Group (BRG)

As reported by The Guardian, the research suggests that some £100bn of the UK economy stems from the Internet - and if it was to be considered an industrial sector in its own right, it would be the fifth largest in the UK. This would make it nearly as big as the financial services sector and twice as large as the hospitality (hotels and restaurants) sector.

Internet is a "central pillar" of the UK economy

Speaking on the Internet Advertising Bureau's (IAB) website, Google UK's managing director Matt Brittin described the Internet as a "central pillar" of the UK economy.
 

Greater broadband penetration required to meet future growth

According to the Connected Kingdom study, the UK is in fact the world's leading nation for e-commerce, with £2.80 exported for every £1 spent online. Paul Zwillenberg, one of the authors, says that "The UK is punching above its weight" in e-commerce with a "high" proportion of retail sales accounted for by online transactions."

The Internet's contribution to the economy is expected to grow by 10% per year for the next five years according to the study, accounting for up to 13% of GDP by 2015. However the report notes that these estimates rely upon the UK meeting targets for broadband penetration and bringing the rest of the country to the same level of digital/online uptake as seen in London and the South-East.