The British consulting industry is expected to grow by a single digit this year at a time the sector finds itself at a historic turning point. According to research from the Management Consultancies Association (MCA), the primary representative body for management consulting firms in the UK, the UK consulting sector’s
Rosie Harris-Davison
Tuesday 07 July 2026 11:26 am | Updated: Tuesday 07 July 2026 11:27 am
The British consulting industry is expected to grow by a single digit this year at a time the sector finds itself at a historic turning point.
According to research from the Management Consultancies Association (MCA), the primary representative body for management consulting firms in the UK, the UK consulting sector’s predicted growth for 2026 stands at 6 per cent, below a previous forecast of nearly 9 per cent.
The predicted growth is lower than MCA’s previous reports, which forecast an 11 per cent increase in 2023 and a 9 per cent increase in 2024.
However, the trade body reported that the sector’s revenue grew by almost 10 per cent in 2025, driven by advising organisations overseas as other countries seek “UK excellence” in consulting services, while domestic appetite remains seemingly flat.
Tamzen Isaacson, chief executive of the MCA, told City AM that this is partly because UK businesses are “focused on cost efficiencies” and spending less on consulting services amid an unstable economy.
#mc_embed_signup { background: #fff; clear: left; font: 14px Helvetica, Arial,sans-serif; width: 100%; max-width: 600px; margin: 20px 0; } #mc-embedded-subscribe-form { margin: 20px 0 !important; } .newsletter-form-flex { display: flex; gap: 0; align-items: center; margin-top: -10px; } .newsletter-form-flex input[type=”email”] { flex: 1; padding: 2px 10px; border: 1px solid rgb(18, 22, 23) !important; border-radius: 12px 0 0 12px !important; } .newsletter-form-flex input[type=”submit”] { padding: 4px 10px !important; margin: 0 !important; background-color: rgb(18, 22, 23) !important; color: rgb(255, 255, 255) !important; border: 1px solid rgb(18, 22, 23) !important; border-radius: 0 12px 12px 0 !important; } .newsletter-banner-content { margin-bottom: 15px; } .newsletter-banner-content h2 { margin: 0 0 10px 0; font-size: 18px; font-weight: 600; } .newsletter-banner-content p { margin: 0 0 10px 0; line-height: 1.5; } .newsletter-banner-content ul, .newsletter-banner-content ol { margin: 0 0 10px 20px; } .newsletter-banner-content a { color: #0073aa; text-decoration: none; } .newsletter-banner-content a:hover { text-decoration: underline; } .newsletter-banner-content img { max-width: 100%; height: auto; margin: 10px 0; } #mc_embed_signup #mce-success-response { color: #0356a5; display: none; margin: 0 0 10px; width: 100%; } #mc_embed_signup div#mce-responses { float: left; top: -1.4em; padding: 0; overflow: hidden; width: 100%; margin: 0; clear: both; }
“We’ve had a weak economy here in the UK, stuttering through various political changes which have reduced business confidence and consumer confidence, which has made for tough market conditions in certain areas, such as retail, manufacturing, consumer-related industries,” Isaacson said.
The MCA said, however, revenue for firms advising clients in both private and public sectors in other countries grew by 9 per cent last year, up from £5.9bn in 2024, with nearly a third of revenue from more than 60 per cent of MCA firms generated overseas in 2025.
Isaacson said the spike overseas is due to there being a global rise in “a series of really specific issues which require specialist industry expertise”, including advisory on tariffs, cyber security, defence, AI, health, and infrastructure.
“There are specific, demanding issues that the economy has been facing, and this has required specialist expertise,” she said.
Read more Consulting giants face up to AI-reckoning
Isaacson added that clients overseas have been opting for British consulting firms to provide advisory services, as they specifically want the “excellence” that the UK consulting sector offers.
“It’s about British standards,” Isaacson said. “When clients employ British professional services firms, they know there is a quality that they are buying in terms of standards, in terms of modern slavery requirements, technology, and charters and ethics.”
Europe and North America contributed 10 per cent to revenue growth; APAC, 4 per cent; the Middle East and Africa, 3 per cent; and South America, 2 per cent.
The UK’s consulting industry is already worth an estimated £21.8bn, and, in response to the MCA’s figures, Chancellor Rachel Reeves said it “is demonstrating that British services are competitive, credible and in demand across the globe.”
“Britain’s consulting sector is a world-class export success story, and these figures show exactly why the UK is the destination of choice for businesses and investors seeking trusted expertise,” Reeves said.
Sector at a crossroads
However, this comes amid the consulting industry being at a crossroads, with firms cutting headcount and testing their traditional business models as AI continues to impact the sector.
City AM revealed in May that the industry is peddling “an outdated model” where “no one is doing anything differently”, with firms’ uptick in AI use leaving clients reshaping their expectations.
The Big Four consulting giants have been slashing headcount as technology uproots the sector, with firms including PwC revealing in April that it was drawing up a blueprint to standardise its consulting services across its global business, following a decline in fees in its consulting arm.
Read more IBM’s consulting chief warns AI will ‘implode’ unprepared rivals
Similarly tagged content: Sections Categories People & Organisations
