The UK consulting sector is expected to grow by nearly 6 per cent this year, according to a new report from the Management Consultancies Association (MCA), as businesses grapple with heightened costs and tight budgets.
Growth Forecast and Economic Pressures
The MCA, which represents the consulting industry, said that cost management and budget constraints are “the single biggest concern” for business leaders in both the private and public sectors. This includes financial services, energy, technology, central government, and the NHS. The sector is predicted to expand by 5.7 per cent in 2026, with growth accelerating to 7.4 per cent in 2027.
However, this forecast is lower than the MCA’s earlier projection of nearly 9 per cent growth for 2026, made in January 2025. The revised figure reflects ongoing economic uncertainty and cautious business sentiment.
Consulting Firms Respond to Challenges
MCA chief executive Tamzen Isacsson said that leading consulting firms “will respond with practical expertise” to help businesses navigate heightened economic pressures. “In challenging economic conditions, consulting is helping organisations move faster, manage risk and deliver real productivity gains,” Isacsson added.
Growing Caution Towards AI Adoption
The report also highlights a “growing caution” among businesses regarding artificial intelligence (AI) adoption. Despite recognising AI’s potential benefits, companies are held back by data and security risks, skill shortages, and difficulties in establishing clear governance policies.
Public sector organisations face particular challenges, with higher digital skills shortages despite investments in technology and digital skills. Over half of surveyed organisations are upskilling and retraining staff in digital literacy.
Additionally, nearly half of respondents believe hybrid working could “adversely affect opportunities for training and development,” including digital skills.
Consultancy Sector Under External Pressure
The consulting industry is also facing external pressure from the rapid rise of AI. Many Big Four firms have conducted layoffs, including in advisory divisions. KPMG recently made headlines over job cuts, while PwC has drawn up plans to standardise consultancy services globally and invested heavily in AI technology.
