Month: July 2025

The UK economy shrank for the second consecutive month in May, in an early setback for new Chancellor Rachel Reeves and a sign that the fragile recovery may be stalling.
According to figures released this morning by the Office for National Statistics (ONS), GDP contracted by 0.1% in May, falling short of analysts’ expectations for a modest rebound. This follows a sharper 0.3% drop in April and marks the second month of decline after a brief bounce of 0.4% in March.
The ONS said the decline in May was driven primarily by a 0.9% fall in industrial production and a 0.6% drop in construction output, although the dominant services sector managed slight growth of 0.1%.
The ONS noted:

Services output grew by 0.1% in May, following a 0.3% decline in April.
Production output – covering manufacturing and energy – dropped 0.9%, after falling 0.6% in April.
Construction output declined 0.6% in May, reversing gains made in April.

While all three sectors showed growth over the three months to May – led by a 1.2% rise in construction – the month-on-month picture paints a more concerning image of an economy struggling to build momentum.
The data comes just a week after Rachel Reeves pledged to deliver “stability and growth” through her new fiscal rules and a pro-business agenda. But with economic activity faltering, the Chancellor faces growing pressure to set out a clear strategy to boost investment and avoid further slowdowns.
Ben Jones, lead economist at the Confederation of British Industry (CBI), said today’s data highlights the risks still facing UK businesses “Flatlining growth in May underscores the ongoing pressures on the economy, with manufacturing and retail continuing to struggle. Persistent trade uncertainty, a cooling labour market and slowing income growth all point to a sluggish recovery.”
“With the Autumn Budget on the horizon, the Chancellor must reassure firms that there will be no new taxes on business—and instead focus on dismantling barriers to growth.”
Jones added that a “collaborative partnership between business and government” would be crucial to sustaining any meaningful recovery.
May’s contraction also reflects broader global headwinds. The IMF has downgraded its forecast for global growth, citing geopolitical risks and weaker trade flows, while central banks remain cautious about cutting interest rates too quickly.
UK inflation is now back at the Bank of England’s 2% target, but borrowing costs remain elevated and have weighed on household demand and business investment. Analysts warn that without targeted support, the economy may struggle to generate the kind of momentum needed to lift living standards and unlock productivity gains.
Economists say the risk of stagnation over the summer remains high, particularly if global demand weakens further or consumer confidence slips. However, some note that the longer-term outlook could improve if inflation continues to ease and interest rate cuts materialise later this year.
For now, though, the warning signs are clear: while services may be ticking over, the UK’s industrial and construction base is still under strain. And with the new government under increasing pressure to deliver on its growth agenda, today’s figures may prove a critical early test of its economic credibility.
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UK economy shrinks again in May, fuelling fears of faltering recovery

MPs have raised serious concerns that the UK could “compromise the integrity” of its financial markets by watering down listing rules to accommodate controversial fast-fashion giant Shein.
In a strongly worded letter to the Financial Conduct Authority (FCA), the cross-party Business and Trade Committee said it would be “deeply concerned” if UK disclosure standards were weakened in a bid to attract Shein’s long-anticipated London Stock Exchange (LSE) flotation.
The intervention follows reports that Shein, a Chinese-founded firm now headquartered in Singapore, has filed confidentially to list in Hong Kong, seen by some as a way to pressure UK regulators into approving a London IPO while sidestepping contentious risk disclosure requirements.
Committee chair Liam Byrne MP warned the FCA that any effort to ease disclosure rules—particularly around alleged human rights violations in Shein’s supply chain—would risk damaging investor confidence and the UK’s global reputation.
“This would not only compromise the integrity of the UK’s listing regime,” Byrne wrote, “but could also risk reputational damage to the UK’s financial markets and undermine investor confidence that the UK was determined to champion only the highest international labour standards.”
Shein has been eyeing a UK listing for over a year and is understood to have secured preliminary approval from the FCA in March. However, progress has reportedly stalled over disclosure language linked to concerns about labour practices in Shein’s Chinese supply chain — a red flag for many UK and international investors.
The Business and Trade Committee now wants the FCA to confirm:
• Whether disclosure risks relating to alleged labour violations are contributing to the delay;
• If the regulator has held discussions about altering disclosure language to facilitate Shein’s listing;
• And what measures the FCA is taking to “safeguard the robustness” of UK listing standards in this and similar cases.
The FCA has not yet responded to the letter publicly.
Shein, once a digital upstart, has become one of the world’s largest fashion retailers, selling cut-price garments direct from factories in China to shoppers in the UK, US and beyond. However, the company has faced mounting scrutiny over alleged forced labour links, particularly in the Xinjiang region — allegations the company denies.
Its attempts to list in both the US and UK have been dogged by political and regulatory resistance, with US lawmakers similarly pressing for greater scrutiny of its supply chains.
Reports that Shein is now pursuing a parallel listing in Hong Kong have been interpreted as a hedge — and a possible tactic to gain leverage in London.
A Shein IPO in London would be one of the largest in a decade and a potential coup for the City, which is battling to revitalise its capital markets following a wave of major companies shifting primary listings to New York.
The government has reportedly been supportive of Shein’s UK ambitions, seeing it as a flagship deal that could encourage more high-growth international businesses to choose London.
But MPs now warn that such a move cannot come at the cost of transparency or ethics.
“The UK cannot send mixed signals about our stance on international labour standards,” Byrne added. “Being open for business must not mean open to exploitation.”
The FCA has been asked to respond to the committee’s concerns and clarify its position on the Shein listing. The regulator’s approach to this case is likely to set a precedent for how the UK balances its ambition to attract global listings with upholding investor protections and ethical standards.
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MPs warn UK must not weaken listing rules for Shein amid human rights concerns

The UK Government has announced a record £92 billion investment in more than 50 major road and rail upgrades across England and Wales, promising to boost economic growth, create tens of thousands of jobs, and significantly improve journey times for commuters and businesses.
Part of the government’s “Plan for Change”, the funding represents the largest transport infrastructure commitment in a generation. It aims to unlock 42,000 new jobs, support the delivery of 39,000 homes, and provide faster, more reliable journeys nationwide.
Major road projects include critical schemes across the North and Midlands. These include improvements to the A66 Northern Trans-Pennine route, the M54 to M6 link road in Staffordshire, and Greater Manchester’s Simister Island interchange – all intended to ease congestion, improve freight logistics, and provide better access to jobs and housing.
On the rail network, significant upgrades are also planned. The government has approved the long-awaited reinstatement of passenger services between Portishead and Bristol city centre – reconnecting communities for the first time in over 60 years.
Three brand new railway stations – Wellington and Cullompton in the South West, and Haxby near York – will extend the reach of the rail network to thousands more people, supporting access to regional growth hubs like Exeter, Leeds, and York.
The Midlands Rail Hub, the region’s most ambitious rail scheme to date, will receive major backing. It promises faster, more frequent services for more than 50 destinations, expanded capacity into Birmingham, and nearly 13,000 construction jobs.
In the North East and Scotland-bound corridors, digital signalling will be introduced on the East Coast Main Line, reducing delays by up to 33% and improving reliability, while supporting the creation of almost 5,000 skilled jobs across the supply chain.
These investments are expected to play a vital role in achieving the UK’s long-term housing and productivity goals. The enhanced connectivity and capacity improvements are designed to support the government’s pledge to deliver 1.5 million new homes by 2029 and to stimulate regional growth beyond London and the South East.
Blake Richmond, Chief Operating Officer at Resonate Group, welcomed the announcement, saying: “It’s encouraging to see increased investment in the UK’s rail infrastructure, particularly in long-overdue regional upgrades and new connections that promise to bring more people and places into the network.”
He added that the success of these infrastructure projects would be maximised by pairing them with smart, real-time digital systems. “By combining physical upgrades with intelligent operational technologies, we can build a rail network that truly meets the needs of a modern, connected Britain.”
The UK’s latest round of transport investment is framed not just as a response to current bottlenecks and infrastructure gaps, but as a future-focused move to boost productivity, cut emissions, and level up regional opportunity. As implementation begins, the focus will shift to ensuring delivery matches ambition, especially as regions await tangible economic and connectivity benefits from the transformative £92 billion plan.
Speaking about the announcement, John Phillipou, Managing Director of SME Lending at Paragon Bank and Chair of the Finance & Leasing Association. said: “Today’s announcement from the DfT is promising news for manufacturing and construction SMEs, as well as regional communities across the UK, presenting a valuable opportunity to stimulate much-needed new housing, regional growth and job creation.
“As a specialist lender providing finance to thousands of SMEs, many of which rely on a fluid transport network, we see firsthand how critical connectivity is for regional communities and particularly SMEs. These improvements promise to accelerate development and bring opportunities to the areas that need it most.
“A welcome step forward for the UK’s growth and productivity agenda – but of course the devil will be in the detail, and ensuring SMEs have fair access to contracts and planning processes will be crucial in making these transformational plans a reality.”
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UK Government unveils £92bn transport overhaul to drive growth and connect communities

Chancellor Rachel Reeves has been warned that her economic roadmap may need to be “ripped up” as a global market shock triggered by Donald Trump’s new wave of tariff threats drives up UK government borrowing costs and rattles investor confidence.
The yield on 10-year UK gilts surged to over 4.63%, as global markets reacted to the US President’s aggressive protectionist rhetoric. The tariffs, aimed at reshaping global trade relationships, have fuelled a flight to the US dollar and driven up borrowing costs across Western economies — including Britain.
Trump’s move comes just as Reeves had begun implementing Labour’s fiscal agenda, which includes a commitment to ramp up public investment. But the sudden tightening of fiscal conditions could derail those ambitions.
“Trump rants and the world pays,” said Ken James, Director at Contractor Mortgage Services. “We’ve seen gilt yields jumping and borrowing costs are up — will mortgage rates be next? Reeves’ roadmap may have to be ripped up.”
The impact of Trump’s tariffs is colliding with domestic fiscal vulnerabilities. A new report from the Office for Budget Responsibility (OBR) warned that Reeves’ recent U-turns on spending restraint had left the UK more exposed to future economic shocks, with Britain’s debt-to-GDP ratio projected to skyrocket to 270% by the early 2070s.
The OBR’s alarm bells come amid broader market anxiety. Investors are demanding higher returns to lend to the UK, reflecting both Trump-driven uncertainty and scepticism over the country’s ability to balance spending and debt.
“The pound is down against all major currencies,” said Tony Redondo, founder of Cosmos Currency Exchange. “Gilt yields are now spiking above Liz Truss levels — this is serious. The Chancellor’s fiscal headroom is shrinking by the hour.”
The repercussions are already being felt closer to home. With gilt yields rising, banks face higher wholesale borrowing costs — which could soon be passed on to consumers in the form of rising mortgage and loan rates.
“Higher gilt yields push up the cost of borrowing for lenders, which ultimately affects consumers,” said John Woolfitt, Director at Atlantic Capital Markets. “If inflation expectations rise due to global supply shocks, the Bank of England could even delay rate cuts.”
That leaves the Bank of England in a dilemma: support growth or tame inflation. Neither option is pain-free, particularly if trade disruption drags down GDP while pushing prices up.
Reeves’ immediate challenge is now fiscal: the higher cost of borrowing could add billions to the UK’s annual debt servicing bill. Each additional basis point on gilts translates to roughly £5 billion in extra annual costs.
“Just as Labour needs every penny for its promised reforms, each Trump-induced tweet is adding billions to Reeves’ tab,” said Kundan Bhaduri, entrepreneur at The Kushman Group. “It’s like watching your mortgage rate climb while someone else holds the ladder.”
Others warned of broader implications. David Stirling, Director at Mint Mortgages & Protection, said the rise in gilt yields could further weaken the housing market.
“Trump tweets, gilts jump, and Rachel Reeves winces. Mortgage rates could follow suit — bad news for anyone trying to get on the ladder before it’s pulled up.”
While some, like Samuel Mather-Holgate of Mather and Murray Financial, believe Trump may not follow through on his full list of tariff threats, the current volatility is already reshaping market expectations.
“Trump thrives on chaos, but his policies often fizzle. Still, this spike might be temporary — lenders may wait it out,” Mather-Holgate said. “But holidaymakers beware: the pound is falling fast against the euro.”
Meanwhile, Reeves must weigh the costs of sticking to her economic plans against the realities of market turbulence.
“Trump has created another fly in Labour’s inkwell,” said Ken James. “Her plans may now be unaffordable in the short term.”
As Trump’s tariff sabre-rattling ripples across global markets, the UK finds itself exposed. The combined pressures of higher borrowing costs, shrinking fiscal space, and a jittery bond market have delivered a clear warning to the Chancellor: this is not the environment she planned for.
With Labour only just in office and a fragile economy underfoot, the weeks ahead may force a fundamental rethink of Reeves’ economic ambitions — whether she likes it or not.
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Trump’s tariffs send UK borrowing costs soaring, forcing Reeves to rethink economic roadmap

The High Court trial between PPE Medpro and the Department of Health and Social Care (DHSC) drew towards its conclusion today, with a blistering set of closing submissions from the defence that portrayed the government’s £122 million claim as a desperate attempt to deflect attention from its own pandemic procurement failures.
Describing the case as “no more than opportunistic,” PPE Medpro’s legal team argued that the DHSC had never needed the 25 million surgical gowns in question, and that its claim was built on weak evidence, flawed assumptions, and a refusal to accept responsibility for a chaotic PPE stockpile that had spiralled out of control.
“This is a textbook case of buyer’s remorse,” the defence said, “where the DHSC is looking for ways to escape from a contract it wished it had never made.”
The closing submissions highlighted that by December 2020, the government had amassed around 500 weeks’ worth of surgical gown stock—close to a decade’s supply—according to its own witnesses. Rather than putting the PPE Medpro gowns to use, the DHSC simply warehoused them across the UK, including in open-air container parks and fields, where they remained for more than 18 months.
Despite the oversupply, the DHSC made no attempt to repackage, reclassify or resell the gowns, even as non-sterile PPE—an option experts said could have recovered up to £85 million. This, PPE Medpro said, was a deliberate decision not to mitigate its losses.
“The DHSC made no attempt to minimise or mitigate its loss… because by December 2020 it had already obtained 500 weeks’ worth of gowns stock,” the defence stated.
Medpro also pushed back hard on the DHSC’s key claims regarding gown compliance and sterility. The government had alleged that the gowns lacked the proper CE marking and failed to meet the EN 556-1 sterilisation standard. But, Medpro said, both points had been debunked during the trial.
The CE mark box was never ticked on the government’s own order form, and witnesses confirmed that the gowns had been approved by the DHSC’s own Technical Assurance team without CE certification. If the government had required more information at the time, it could—and should—have asked.
“PPE Medpro never provided a valid CE mark in respect of the gowns and its offer was approved on that basis,” the defence asserted.
On sterility, Medpro said the government’s claims were equally unsustainable. Testing took place more than 500 days after delivery, and only 60 gowns were tested out of 25 million. The gowns had been stored in unknown and uncontrolled conditions, and the microorganisms discovered on them—including strains found in the Pacific Ocean, the Mojave Desert, and even space—were more consistent with environmental contamination after delivery.
“The DHSC has not provided a credible explanation as to how all these bacteria were present in the factory in China,” said the defence.
In a marked shift, the DHSC has now pivoted its case to argue that none of the seven sterilisation plants used by Medpro—one operated by a global US firm—had properly validated processes, a claim described in court as relying on “fantastical assumptions.”
The defence also lambasted the DHSC for its failure to produce basic documentation or witnesses who could explain what happened to the gowns during their time under government custody.
“The DHSC has failed to call a single witness who could provide any evidence relating to the transportation, storage and handling of the gowns,” the submission noted.
This lack of transparency was compounded by repeated changes to the government’s case during the trial—particularly its shifting position on inspection dates, sterility criteria, and its abandonment of an earlier claim about improper gown packaging.
In a final flourish, PPE Medpro accused the government of attempting to make the company a scapegoat to deflect criticism of its own procurement strategy during the height of the pandemic.
“PPE Medpro has been made a fall guy for government failings… to shield others from criticism and distract from the vast over-ordering of gowns.”
The defence also noted that the company had faced “seemingly endless investigations” by the National Crime Agency (NCA), which they argued had had a chilling effect on Medpro’s ability to gather documents for its defence.
“The Damoclean threat of criminal proceedings” had cast a long shadow over the case, they said.
The High Court will now deliberate, with a judgment expected in due course. If the court sides with PPE Medpro, it could prove to be a significant setback not only for the DHSC’s attempts to recoup pandemic spending, but for the credibility of its procurement practices under emergency conditions.
For now, one thing is clear: after nine days of testimony and cross-examination, the DHSC’s case rests on a fragile foundation—much like the container parks in which its surplus stock was left to sit.
Read more:
PPE Medpro delivers scathing closing in DHSC case, accusing government of buyer’s remorse and scapegoating

A £2 million investment by Innovate UK has successfully propelled six innovative artificial intelligence and data-driven projects into real-world application, delivering tangible environmental benefits while unlocking additional funding and commercial traction.
Part of the wider £7 million Integrating Finance and Biodiversity for a Nature Positive Future (IFB) programme led by the Natural Environment Research Council (NERC), the grants—ranging from £250,000 to £500,000—were awarded to six projects focused on solving major environmental challenges using AI, big data and geospatial intelligence.
Among the standout projects:

Ocean Ledger has advanced its geospatial analytics platform to predict coastal defence degradation and shoreline erosion. Its modelling tools, aimed at insurers, councils and engineering firms, enable better planning for rising sea levels and storm surges. Ocean Ledger has since been selected for Lloyd’s Lab, the UK’s top Insurtech accelerator.
TierraSphere and the University of Huddersfield developed a groundbreaking AI-driven MRV (Monitoring, Reporting and Verification) model that forecasts inorganic carbon sequestration in soils, with 40 hectares already restored in rural Mexico. Future versions will integrate biodiversity, water retention and social impact metrics.
Auquan and University College London created an AI platform that quickly analyses complex geospatial nature data, significantly improving the accuracy and speed of environmental due diligence for investors.
Caledonian Climate Partners and New Gradient developed an AI-based tool that uses drone imagery to cut costs and speed up peatland restoration planning. The platform has already secured a mapping contract from the Cairngorms National Park Authority and contributes to the IUCN Peatland Programme.
City Science Corporation and Caerphilly County Borough Council delivered a geospatial land assessment tool that embeds natural capital into local planning, helping mitigate habitat loss and enhance biodiversity outcomes at a policy level.
Zulu Ecosystems and Severn Trent Water introduced a suite of land use optimisation tools to model how nature-based interventions can improve flood resilience, drought response and water quality. Their River Idle catchment model identifies areas for habitat restoration that also support carbon, biodiversity, and water management targets.

Catherine Makin, Innovation Lead for Green Finance at Innovate UK, said the projects were already demonstrating powerful use cases: “Each project addresses a crucial environmental need — from coastal conservation to water resilience and peatland restoration. We’re delighted to see real progress in unlocking nature-positive investment and the fact that several projects have already attracted follow-on funding speaks volumes.”
The projects have also shown strong commercial promise. Two are already in talks with new investors, while several have secured contracts or pilot schemes to expand their reach.
Ocean Ledger’s CEO Paige Roepers added: “Support from Innovate UK accelerated our development dramatically. We’ve created product-ready workflows and been invited to join Lloyd’s Lab, which helps us showcase our solution to major insurers and customers.”
With nature-positive investing gaining urgency and momentum globally, these six projects are seen as trailblazers for how AI and data can tackle environmental degradation—delivering both financial and ecological returns.
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Six pioneering AI and data projects hailed for real-world environmental impact after £2m Innovate UK backing

UK carmakers are on course to meet this year’s electric vehicle (EV) sales targets, despite having successfully lobbied the government to soften the rules.
In the first half of 2025, EVs accounted for 21.6% of new car sales, according to analysis from thinktank New AutoMotive. This puts the industry only marginally below the adjusted target of 22.06% once official “flexibilities” are factored in – such as borrowing credits from future years and earning partial credit from selling hybrids.
The data undercuts the industry’s argument that the zero-emission vehicle (ZEV) mandate introduced by the previous Conservative government was too strict. That policy, which required carmakers to increase the share of electric vehicles sold each year or face fines of up to £15,000 per car, faced intense lobbying from automotive leaders.
In April, new business secretary Jonathan Reynolds confirmed that Labour would ease the requirements. The changes include more generous flexibilities and reduced penalties. Carmakers argued the rules were unworkable and even blamed factory closures – including Stellantis’s decision to shut its Luton van plant – on the ZEV mandate. However, earlier statements by company executives cast doubt on that rationale.
Ben Nelmes, CEO of New AutoMotive, said: “Carmakers are within touching distance of their targets for 2025 before taking into account the government’s decision to weaken the targets. This impressive progress should reassure ministers that ambitious targets spur the innovation and dynamism the UK needs to achieve net zero and get ahead in the global shift towards electric vehicles.”
The government’s rollback is expected to result in increased carbon emissions, despite its claims the environmental impact will be negligible.
New AutoMotive’s analysis shows that Japanese manufacturers are lagging furthest behind. Nissan, for instance, is waiting for its Sunderland plant to begin production of the next-generation Leaf. Toyota and JLR (Jaguar Land Rover) are also behind their effective targets.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the market is moving forward – with one in four new car buyers choosing an EV in June – but not quickly enough. He pointed out that fleet buyers account for most of the EV demand due to tax incentives, while just 13% of private buyers have opted for electric this year.
“The lack of natural demand among private consumers has forced manufacturers into unsustainable discounting,” Hawes said. “To meet targets, they are being hit with the double whammy of offering heavy incentives while facing punitive fines.”
Consumer reluctance to go electric stems from the high upfront cost of EVs and patchy charging infrastructure. Hawes called on the government to follow international examples and reinstate direct purchase incentives for consumers – which, he said, had once helped the UK become a world leader in the transition to zero-emission vehicles.
Despite the progress, campaigners argue the decision to loosen targets sends the wrong message. They warn it may slow the pace of innovation and undermine the government’s net zero ambitions at a crucial time.
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UK carmakers near EV sales targets despite government weakening rules after industry pressure

Amazon’s longest-ever Prime Day event, running from 8–11 July, is expected to generate record-breaking sales of $21.4 billion globally, with UK shoppers forecast to contribute nearly £2 billion, according to delivery specialists Parcelhero.
But while consumers and marketplace sellers are set to benefit, concerns are rising about the broader implications of Amazon’s growing dominance in the UK economy.
Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., said the sale, which has expanded to four days for the first time, is set to deliver a 60% surge in global gross merchandise value (GMV) compared to last year. Amazon’s own product sales are projected to hit $11.5bn, while independent sellers could generate a further $10bn – a 67% year-on-year rise.
That growth would be good news for UK SME traders who use Amazon’s marketplace, Jinks said, especially with UK Prime Day sales predicted to jump from £1.2bn last year to £1.92bn this year.
Last year, Amazon reported that over 100,000 items were sold per minute during Prime Day, and customers globally saved around $2.5bn. The event is being closely watched amid speculation that it is designed to cushion Amazon’s US operations from future disruptions, particularly new tariffs proposed by President Trump.
But while the sales uplift is welcome, Jinks cautioned that Amazon’s expanding grip on UK e-commerce could come at a cost. The retail giant has pledged to invest £40bn in the UK over the next three years, with plans to open four new fulfilment centres and significantly expand its delivery and office infrastructure.
“As Amazon’s dominance grows, there’s a real risk that smaller sellers become overly dependent on the platform,” said Jinks. “If that relationship sours, or a seller is suspended or delisted for policy breaches – or even just because their products are deemed CRaP (Cannot Realise a Profit) – it can be devastating.”
Amazon is also under scrutiny from the UK’s Groceries Code Adjudicator, which has launched a formal investigation into the company’s supplier practices. The probe follows a sharp drop in Amazon’s compliance score in the GCA’s 2024 annual survey, falling from 59% to just 47%, the lowest of all major retailers.
“There’s no doubt Amazon continues to innovate,” Jinks added. “Prime Day brings real opportunities for savings and for sellers to thrive. But as it becomes the pipeline for nearly everything we buy, UK policymakers and traders must remain alert to the risks of over-reliance.”
With new technologies such as drone delivery and 3D printing on the horizon, Amazon’s influence is set to grow even further. But the balance between innovation, fair competition and long-term sustainability for UK retailers remains a delicate one.
Read more:
Prime Day poised to top $21bn globally – but UK experts warn of Amazon dominance risks

Electric parcel delivery startup Hived has raised $42 million in fresh funding to expand its all-electric courier operations beyond London, marking a significant milestone in its mission to disrupt the UK’s legacy logistics sector.
The London-based firm, co-founded in 2021 by former Manchester City women’s youth team captain Murvah Iqbal and Mathias Krieger, plans to use the funding to expand to Bristol, Bath, and Brighton by September, with further rollouts in Birmingham and Manchester set for 2026.
Hived operates a fully electric fleet and has delivered more than 6.5 million parcels across London to date for high-profile clients including John Lewis, Uniqlo, and Zara. It employs a 250-strong courier network and boasts a 99% on-time delivery rate — a metric driven by its proprietary parcel-tracking software that integrates logistics from warehouse to doorstep.
“Parcel delivery should feel seamless, not stressful, but most of the industry is still running on systems that were never designed for ecommerce,” said CEO Iqbal, 29. “We’ve proven our model, and with this funding round, we’re ready to scale across the south of England.”
The latest round was led by NordicNinja, Europe’s largest Japan-backed venture capital firm, and includes six other new investors alongside existing backer Planet A. It brings Hived’s total capital raised to $58 million since launch.
Hived’s tech-first model is positioned as an alternative to traditional delivery firms, which Iqbal claims are hampered by legacy infrastructure. “Many were built for business-to-business deliveries or letters, not ecommerce. Their systems are too entrenched to adapt efficiently — they’d almost have to start from scratch,” she said.
The company operates its own Mercedes eActros 600 trucks, collecting pre-packed orders from clients’ warehouses and sorting them at its London hub before final delivery. It plans to establish additional sorting centres in new cities to support expansion.
Iqbal says Hived’s core strength lies in eliminating errors in the final mile. “Most of the cost in logistics comes from things going wrong — missed deliveries, customer queries, damaged goods. That’s where we come in.”
The startup’s software provides end-to-end tracking for retailers, couriers, and customers, using real-time data to optimise parcel handling. “We know down to the square foot where every parcel is in our warehouse. Out of 10,000 parcels, we might lose one or two — and that’s exceptional in this industry,” said Iqbal.
Beyond domestic growth, Hived is beginning to license its software to international partners. Iqbal recently returned from Japan, where she met Yamato Transport, which handles over six million deliveries daily. “Our tech is adaptable to different markets. We’re exploring how to embed our software into global logistics operations.”
Despite being loss-making, Hived’s efficiency and reliability are attracting major retailers seeking sustainable, tech-enabled alternatives to carbon-heavy delivery giants.
The funding signals growing investor appetite for logistics innovation and comes as e-commerce giants demand greater sustainability and precision in fulfilment. Iqbal says the company has maintained capital efficiency and resilience through a tough fundraising climate.
“Investors now want proof that every pound moves the needle,” she added. “We’ve built something efficient, scalable and customer-centric. This is just the beginning.”
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Hived raises $42m to roll out electric delivery fleet across southern England