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The UK consulting sector is expected to grow by nearly 6 per cent this year, amid businesses facing ‘intensifying pressure’ from cost management, cyber security risks, and budget constraints.
The Management Consultancies Association (MCA), which represents the consulting sector, has released a new report stating 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, it stated the consulting sector is expected to grow by 5.7 per cent this year, with an increase to 7.4 per cent projected for 2027, according to MCA.
MCA chief executive Tamzen Isacsson said the leading MCA consulting firms “will respond with practical expertise” to businesses in the UK which are navigating heightened economic pressures.
“In challenging economic conditions, consulting is helping organisations move faster, manage risk and deliver real productivity gains,” Isacsson said.
A report by MCA in Janaury 2025 stated that a near 9 per cent increase was predicted for 2026, a higher figure than the near 6 per cent figure reported in its Janaury 2026 survey.
‘Growing caution’ towards AI
MCA said businesses are also experiencing “growing caution” about adopting AI and are being “held back” from advancing its use, despite recognising its potential benefits to companies.
Businesses reported data and security risks to be among their main concerns for stalling on taking AI by the reins, as well as skill shortages within teams and difficulties in establishing clear governance policies.
Public sector organisations, in particular, are facing higher digital skills shortages in relation to AI adoption, despite channelling investment into technology and digital skills resources, with over half of those surveyed reporting that they are 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 in headlines
However, this research comes as the consulting industry is experiencing 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 in the headlines over job cuts.
Last month, Big Four firm PwC drew up a plan to standardise its consultancy services across its global business and invested heavily in the technology.