FLA reports £69bn of new lending in first five months of 2026

UK households and businesses received £69 billion of new finance from Finance & Leasing Association (FLA) members during the first five months of 2026, up 4% on the same period last year, as the trade body published its first Impact Report highlighting the sector’s contribution to economic growth.

The report, The Hidden Engine Behind UK Growth, sets out how finance provided by FLA members is enabling businesses to invest in equipment, technology and vehicles, while helping millions of consumers access transport and other essential purchases.

The latest figures also underline the continued importance of asset finance in supporting business investment across key sectors. FLA members provided £2.4 billion of new lending for agricultural equipment in 2025, with lending increasing by a further 12% year-on-year to £1.2 billion during the first five months of 2026.

The report also highlights the rapid growth of finance supporting the transition to electric vehicles. Finance provided for consumer battery electric vehicle purchases increased by 56% during 2025 and rose by a further 69% in the first five months of 2026. FLA members financed 93% of all private new battery electric vehicle sales during the period.

The findings come as policymakers look to stimulate business investment, improve productivity and accelerate economic growth across the UK.

“As the UK looks to boost productivity and unlock growth, access to finance will remain critical. This report demonstrates the scale of the sector’s contribution to businesses, communities and households across every region of the country.”

Nigel Terrington CBE, Chief Executive of Paragon Bank, said the latest figures demonstrated the vital role specialist lenders play in supporting economic activity.

He said: “Finance is central to determining whether businesses can invest, grow and take the next step. These latest lending figures by FLA members reveal the scale at which our sector is supporting real and tangible economic activity.

“The launch of this report enables us to move the conversation from assumption to evidence, showing how access to funding is a fundamental condition for growth, especially for SMEs.

“There is a clear opportunity now to build on this contribution. With a more supportive policy environment, specialist lenders will be well positioned to broaden support for business investment and innovation – ultimately creating a stronger and more resilient economy for the UK.”

The report showcases a number of examples illustrating the impact of specialist finance across the UK economy. These include a £1.6 million funding package from Paragon Bank that enabled aerospace tooling specialist Datum Tool Design to invest in advanced manufacturing equipment and expand its operations in Northern Ireland.

Elsewhere, specialist lender Propel provided £360,000 to support a third-generation dairy farm in West Wales in investing in automation technology to improve productivity and resilience, while Tusker helped recruitment business Reed introduce an electric vehicle salary sacrifice scheme for more than 4,000 employees as part of its employee benefits and sustainability strategy.

The FLA said the report demonstrates the significant contribution made by its members in supporting investment, innovation and the UK’s transition to a more productive and sustainable economy.