UK consulting leaders projecting growth of 5.7% in 2026
Projected growth for the consulting sector has declined among members of the UK’s industry representative body. Management Consultancies Association firms told the organisation’s annual report that they now expect an average revenue expansion of under 6%, having previously anticipated growth close to 9%.
UK consulting has been locked into a slow growth cycle in recent years, with different assessments suggesting the industry’s collective revenue was either plateauing, or negative growth. After the 2020 lockdown period, consultants enjoyed an immediate rebound, which saw a brief glut in demand lead to major hiring campaigns – but in the years following, many of the largest firms have downsized their headcount, as clients once again postponed projects amid geopolitical uncertainty and rampant inflation.
Source Global Research confirmed its estimate of the size of the UK consulting market fell from £15.4 billion to £14.9 billion in 2024. While the Management Consultancies Association uses different metrics (based on its own membership) to estimate the health of the sector, and believes the market was flat, rather than shrinking, seeing revenues hit £20.4 billion again in 2024, it also reported anxiety among advisory leaders going into 2025.
At the start of last year, this saw consultants issue a marked decline in expectations. In the annual Management Consultancies Association (MCA) survey, member firms told the organisation that they were reducing growth predictions for 2025 from 11% to 6.4%, and while 2026 would see it accelerate, that would only be to around 8.7%.
In the middle of the year, an update saw those figures shrink again, to 3.6% growth for 2025 and 7.8% for 2026. And while the MCA’s latest releases have not established whether those feelings were accurate for 2025, or indeed to the extent the wider £20 billion industry grew, its newest annual research has shown that consulting firms have once again revised their figures for the current year.
As 2026 dawns, the MCA found consulting leaders now expect 5.7% growth for the year. And as in previous findings, in 2027, the respondents also expected that to rise – to 7.4%. While these figures are shy of previous gages of confidence, however, the MCA – which conducted its poll via the independent research firm Savanta – notes this is still “robust growth” despite “uncertainty in the UK and global economy” – especially as it would vastly outpace the performance of wider markets.
Tamzen Isacsson, CEO of the MCA, remarked, “2026 is a year of real opportunity for UK businesses to move forward positively… This survey makes one thing clear: the UK consulting industry will play an important role in the year ahead driving growth and digital innovation with clients as our economy faces rapid technological change, economic pressures and continued geopolitical challenges. Our industry is helping organisations adopt new AI technologies responsibly, ethically and effectively and consultants have a key role in keeping long term priorities such as sustainability on track with clients despite their short-term pressures.”
On that note, MCA members said they expect client demand for digital technology and AI-driven solutions to grow in the coming year, “underscoring AI’s key role in shaping consulting activity for clients, as well as for firms themselves”. In stark contrast to a recent PwC study, which found that 56% of CEOs had seen “no benefit” from investments in AI, the consultants speaking to the MCA identified three key areas they were seeing it work for them.
The majority – or 77% – of firms have now integrated AI into their systems or enabled employees to use AI models while 76% search for information and undertake research using AI (up 9% since last year), leading to faster processes and improved operational efficiency. However, this rapid rise in AI is now cited as the industry’s leading challenge by half of all firms (52%), with firms facing higher costs for technology, staff training and development, and some uncertainty remains over clients’ willingness to pay for these advanced services.
A 79% portion said it had contributed time savings to their operations. Meanwhile, 68% had boosted automation with it, and 63% said it had helped improved speed in their deliverables. The findings therefore show a continued shift in the consulting landscape as firms anticipate increased client demand for digital transformation and AI services over the next two years.
To that end, Baroness Lloyd of Effra, minister for digital economy, added, “The management consultancy sector plays a vital role in the government’s business agenda and has been highlighted as a key sector within the Industrial Strategy which is already making a difference to the UK economy. Serving as a catalyst for transformation, helping businesses to unlock potential, embrace innovation and shape a future of limitless possibilities, I am delighted that the MCA survey shows that the sector can expect further strong growth, serving to boost skills and create high quality jobs across the UK.”
