The British consulting industry is facing a notable slowdown in its growth trajectory, with projections indicating a single-digit expansion this year. Research from the Management Consultancies Association (MCA), the leading representative body for UK management consulting firms, forecasts a 6 per cent growth for 2026. This figure marks a significant reduction from previous predictions, which had anticipated nearly 9 per cent growth for the same period.
This revised outlook follows a period of stronger performance, with the MCA having previously reported an 11 per cent increase in 2023 and a 9 per cent rise in 2024. Despite the domestic slowdown, the sector's overall revenue still grew by almost 10 per cent in 2025. This growth was predominantly fuelled by international organisations seeking advisory services, highlighting a strong global demand for what is perceived as 'UK excellence' in consulting.
Tamzen Isaacson, chief executive of the MCA, attributed the subdued domestic appetite to UK businesses prioritising 'cost efficiencies' amidst an unstable economic climate. She noted that a 'weak economy' in the UK, coupled with 'stuttering through various political changes', has diminished both business and consumer confidence, creating challenging market conditions, particularly in sectors such as retail, manufacturing, and other consumer-related industries.
Conversely, the MCA reported a robust 9 per cent increase in revenue from firms advising international clients in both private and public sectors last year, reaching £5.9bn. In 2025, nearly a third of the revenue for over 60 per cent of MCA firms was generated overseas. Isaacson explained that this global surge is driven by a rise in specific, complex issues requiring specialist expertise, including advice on tariffs, cyber security, defence, artificial intelligence, health, and infrastructure. Clients abroad are actively choosing British consulting firms for their 'excellence' and adherence to 'British standards' in quality, ethics, and modern slavery requirements.
Geographically, Europe and North America contributed 10 per cent to this overseas revenue growth, followed by APAC at 4 per cent, the Middle East and Africa at 3 per cent, and South America at 2 per cent. The UK's consulting industry is currently valued at an estimated £21.8bn. Chancellor Rachel Reeves acknowledged these figures, stating that they demonstrate 'British services are competitive, credible and in demand across the globe,' and that the sector is a 'world-class export success story'.
However, this period of mixed fortunes coincides with the consulting industry reaching a pivotal 'crossroads'. The sector is grappling with the transformative impact of artificial intelligence, which is prompting firms to reassess their traditional business models and, in some cases, reduce headcount. Reports suggest that the industry has been operating on an 'outdated model', with the increased adoption of AI by firms leading clients to reshape their expectations. Major consulting firms, including PwC, have reportedly been streamlining operations and standardising services in response to declining fees in their consulting divisions.