The UK consulting sector is expected to grow by nearly 6 per cent this year, as businesses face intensifying pressure from cost management, cyber security risks, and budget constraints, according to a new report from the Management Consultancies Association (MCA).
Costs and Cyber Risks Top Concerns
The MCA, which represents the consulting sector, stated that heightened costs and strapped budgets are “the single biggest concern” for both private- and public-sector business leaders, alongside increased cyber and data protection risks. As a result, the consulting sector is projected to grow by 5.7 per cent in 2026, with an increase to 7.4 per cent forecast for 2027.
MCA chief executive Tamzen Isacsson said leading consulting firms “will respond with practical expertise” to help UK businesses navigate heightened economic pressures. “In challenging economic conditions, consulting is helping organisations move faster, manage risk and deliver real productivity gains,” Isacsson added.
However, a previous MCA report from January 2025 had predicted a near 9 per cent growth for 2026, a higher figure than the current 5.7 per cent estimate, indicating a more cautious outlook.
Growing Caution Towards AI
The MCA report also highlighted a “growing caution” among businesses regarding the adoption of artificial intelligence (AI). Despite recognising its potential benefits, companies are being held back by data and security risks, skill shortages, and difficulties in establishing clear governance policies.
Public sector organisations, in particular, face higher digital skills shortages in relation to AI adoption, even as they channel investment into technology and digital skills resources. Over half of surveyed public sector organisations reported upskilling and retraining staff in digital literacy.
Additionally, nearly half of respondents said they believe hybrid working could “adversely affect opportunities for training and development”, including across digital skills.
Consultancy Sector Under Pressure
This research comes as the consulting industry faces external pressure from the rapid rise of AI. Many Big Four firms have been conducting rounds of layoffs, including in their advisory divisions. KPMG is the latest to make headlines over job cuts. Last month, PwC drew up a plan to standardise its consultancy services across its global business and invested heavily in AI technology.
