UK BUSINESSES GRAPPLE WITH COST PRESSURES, CYBER RISKS AND STALLED ECONOMIC GROWTH ACCORDING TO NEW MCA RESEARCH

  • Rising costs, cyber security threats and weak economic growth are the dominant concerns for UK organisations 
  • Businesses remain cautious on AI citing security concerns, skills shortages and weak governance as key barriers
  • Latest independent research shows clients judge external advisers on delivery against key business goals, transfer of knowledge and value for money

UK organisations are under intensifying pressure from rising costs, cyber security risks and low economic growth, while efforts to adopt artificial intelligence are being slowed by skills shortages and security concerns according to new independent research from the Management Consultancies Association (MCA).

The MCA Client Survey 2026, conducted by the research firm, Savanta, highlights the most pressing challenges facing UK organisations across the private and public sectors. The findings show that cost management and budgets constraints[1] are the single biggest concern for leaders alongside increased exposure to cyber security threats and data protection risks[2], set against a backdrop of low economic growth.

The consulting industry, which is one of the UK government’s priority growth driving sectors, is responding to clients needs and current challenges, boosting productivity and jobs across the country and is predicted to achieve 6% growth this year and 7% next with many leading SMEs growing much faster at around 25%.[3]

The research also reveals growing caution by businesses around the adoption of artificial intelligence. While client organisations recognise AI’s potential, progress is being held back primarily by concerns over data security and privacy (40%)[4], the lack of skilled internal teams (34%)[5] and difficulties establishing clear governance and strategic roadmaps (28%)[6]. The cost of implementation is viewed as a secondary constraint, cited by fewer than a third of respondents.[7]

Businesses report that the success of working with external advisory support is defined by the delivery of agreed outcomes, relevance to their specific challenges and demonstrable value for money. These measures consistently outweigh more abstract claims around “innovation” or large‑scale “transformation”.[8] Clients also highlighted the transfer of skills and knowledge as a critical requirement.

Demand for digital and technology‑related work remains high, followed by strategy and programme or project management. However, digital capability is now seen as a baseline expectation rather than a differentiator. Organisations increasingly want technology initiatives to be tied directly to productivity gains, risk management and operational resilience.[9]

Tamzen Isacsson, Chief Executive of the Management Consultancies Association, said:

“In challenging economic conditions consulting is helping organisations move faster, manage risk and deliver real productivity gains. The MCA Client Survey 2026 shows the competitive edge now lies in being able to provide judgement, sector knowledge and trust that is earned through outcomes. As UK organisations navigate cost pressures, digital disruption, and increasing governance demands, the leading MCA consulting firms will respond with practical expertise and genuine partnership.”

Digital and technology (37%) consulting work remains the most common consulting service required followed by Strategy (34%) and risk management (34%), however clients now see digital consulting as a standard expectation rather than a unique proposition. Opportunities for consulting firms in the future lie in linking digital solutions to clients’ productivity, risk management, and organisational capability.[10]

The survey also identifies marked differences between public and private sector priorities. Public sector organisations place greater emphasis on cost control and operational efficiency, with nearly six in ten citing cost management as a key challenge. Demand for change management and programme delivery support is also higher in the public sector, reflecting the scale and complexity of current transformation programmes.[11] Despite investment in digital skills and technology, public sector organisations report more acute skills shortages, particularly in relation to AI adoption.[12]

Efficiency concerns were also cited by 48% of public sector respondents, versus 31% of private sector peers.[13] Demand for consultancy in change management and programme/project management is also higher in the public sector. 41% of public sector organisations expect to seek support in change management, while 35% anticipate a need for programme/project management expertise – higher than the 24% reported by private sector clients for each area.[14]

When it comes to responding to technological change, those working in the public sector are taking proactive steps. More than half (56%) are upskilling or retraining staff in digital skills, compared to 45% in the private sector. Public sector clients are also investing more in new technologies (51% public vs. 45% private) and are more likely to turn to external consultants or advisors for digital transformation initiatives (35% public vs. 28% private). [15] However, skills shortages remain a significant barrier to greater adoption of AI in the public sector, with 45% of public sector respondents citing this as a challenge, compared to 32% of their private sector counterparts.[16]

The growing importance of having the Chartered Management Consultant Accreditation (ChMC) in an increasingly competitive consulting market was also highlighted. More than three quarters (77%)[17] of clients surveyed said it’s important consultants hold Chartered status and 78%[18] said they would be more inclined to hire a firm whose consultants are Chartered.  Clients pointed to the higher professional standards associated with Chartered consultants (43%), the trust and credibility it brings (43%), and a strong ethical framework and adherence to a code of conduct (39%) as the most valued benefits.[19]

The MCA Client Survey 2026 was conducted with over 350 C-Suite, Senior and Mid Managers from a range of organisations who use the services of consulting firms. Sector ranged from financial services and manufacturing to those working in Central and Local Government.

Further information can be found at www.mca.org.uk

-ENDS-

[1] MCA Client Survey 2026 – 42% of respondents who answered cost management and budget constraints when asked “What are your emerging business challenges?” (multiple choice)
[2] MCA Client Survey 2026 – 31% of respondents who answered cybersecurity threats and data protection when asked “What are your emerging business challenges?” (multiple choice)
[3] MCA Member Survey 2026 – Forecasts of MCA Member Firms for growth in 2026 and 2027
[4] MCA Client Survey 2026 – 40% of respondents who answered data privacy and security concerns when asked “Which, if any of the following, are the biggest challenge your organization faces in adopting AI solutions?” (multiple choice)
[5] MCA Client Survey 2026 – 34% of respondents who answered lack of skilled professionals when asked “Which, if any of the following, are the biggest challenge your organization faces in adopting AI solutions?” (multiple choice)
[6] MCA Client Survey 2026 – 28% of respondents who answered Difficulty in defining a clear AI strategy and roadmap when asked “Which, if any of the following, are the biggest challenge your organization faces in adopting AI solutions?” (multiple choice)
[7] MCA Client Survey 2026 – 29% of respondents who answered high implementation costs when asked “Which, if any of the following, are the biggest challenge your organization faces in adopting AI solutions?” (multiple choice)
[8] MCA Client Survey 2026 – How do you assess the success of a consulting project on completion?
[9] MCA Client Survey 2026 – 37% responded ’digital and technology advisory’ when asked  ”What consulting support might you need in the future?”
[10] MCA Client Survey 2026 – ”What consulting support might you need in the future?”
[11] MCA Client Survey 2026 – “What are your emerging business challenges?”
[12] MCA Client Survey 2026 – “Which, if any of the following, are the biggest challenge your organisation faces in adopting AI solutions?”
[13] MCA Client Survey 2026 – ”What are your emerging business challenges?”
[14] MCA Client Survey 2026 – ”What consulting support might you need in the future?”
[15] MCA Client Survey 2026 – ”What actions is your organisation taking in managing technological and digital disruption?”
[16] MCA Client Survey 2026 – “Which, if any of the following, are the biggest challenge your organization faces in adopting AI solutions?”
[17] MCA Client Survey 2026 – “How important is it for your organisation to employ consultants who have the Chartered Management Consultants Accreditation?”
[18] MCA Client Survey 2026 – “Would you be more inclined to hire a consulting firm if you knew their consultants have the Chartered Management Consultants Accreditation?”
[19] MCA Client Survey 2026 – ”How important is it for your organisation to employ consultants who have the ChMC accreditation?” and ”What benefits, if any, do you think there are in working with consultants who have the ChMC Accreditation?”