Businesses in railway arches contribute £3.3bn to the UK’s economy every year

The Arch Company, a leading provider of space to small businesses, has released a comprehensive report that has found that businesses across its estate contribute £3.3bn to the UK’s economy every year.

The report, produced by economic consultancy Volterra, found that activities within The Arch Company’s spaces contribute between £590m and £790m in tax revenues each year, including £42m in business rates.

Craig McWilliam, CEO of The Arch Company said:

“In busy urban areas, premises for small businesses are in short supply and we need to make the most of what little space there is available. Railway arches are more than just a feature of the urban landscape; they are vital economic units that support local communities, foster small business growth, and contribute significantly to London’s economy.

The report identifies that businesses based in railway arches play a critical role in supporting local economies and contributing to job creation. It is estimated that 32% of people working in arch-based businesses live in the same local authority area as where they work.

Arch-based businesses provide important employment opportunities for people on low and middle incomes. A higher proportion of occupations including skilled trades, sales and customer services, and machine operatives can be found in arch-based businesses compared to the rest of London’s workforce. In the case of machine operatives, the proportion of those working in railway arches is double the London average.

Around 50% of arch spaces are between 1,000-2,500 sq ft, making them ideal for small businesses who play a part in the local foundational economy providing goods and services to local residents and businesses.

The report identifies significant opportunities for growth within the portfolio, with the potential to support an additional 8,200 jobs and generate £630m in GVA annually if the entire portfolio is fully occupied. This expansion could also increase annual tax revenues by £190m to £250m. The ongoing regeneration programme could save 60m kgCO2e, equivalent to removing the carbon footprint of 35,000 cars for a year.