Britain isn’t falling behind in the e-commerce race.

On the contrary, Old Blighty leads the world when it comes to using the internet for both business to consumer and business to business transactions.

According to a new government report more than a quarter (27 percent) of the UK's businesses are now using the internet.

In terms of actual e-commerce transactions between customers, companies and their suppliers, Britain is apparently the world leader.

The technological breakthrough is not confined to metropolitan areas, with Scotland registering the highest take-up. Nearly a third (29 percent) of businesses north of the border are now trading online.

The government report flies in the face of a recent PricewaterhouseCoopers study, which concluded that Germany has drawn ahead in the European e-commerce race.

Industry watchers, however, were raising eyebrows at the way the government report defined a firm as online, which included the sending or receipt of the occasional email.