Iran War Fuels Growth in UK Consulting Sector

By the Editorial Team · Monday, July 6, 2026

The UK consulting sector saw a 3 percent revenue increase to £21.8 billion last year, fueled by demand for energy resilience and supply chain diversification amid geopolitical tensions in Iran. With a projected 6 percent growth in 2026, the industry is also expanding its focus on cybersecurity and technology upgrades to address ongoing global uncertainties and maintain its export success, particularly in North America and the Middle East.

The United Kingdom’s consulting sector is experiencing renewed growth after a period of subdued activity, driven in part by heightened demand linked to geopolitical tensions in Iran. According to data released by the Management Consultancies Association (MCA), combined revenues in the industry rose by 3 percent to £21.8 billion last year, following a decline in business spending on consulting services in 2024. The MCA forecasts a further 6 percent increase in revenue for 2026, as companies seek external expertise to navigate ongoing geopolitical uncertainties.

Tamzen Isacsson, chief executive of the MCA, highlighted that the conflict in Iran has prompted many clients to prioritize energy resilience—ensuring reliable access to power—and to diversify supply chains in response to logistical challenges. “There has been quite a lot of work that clients have had to do with energy resilience and supply chain diversification,” she said. Isacsson added that companies are also recommencing projects in various other areas, including technology upgrades, as they adjust to a business environment shaped by persistent crisis conditions and inflationary pressures.

The sector’s recovery follows a slowdown during the pandemic and a period marked by concerns that artificial intelligence might reduce the need for junior consulting roles. Isacsson refuted the view that early-stage talent is dispensable, emphasizing that the future growth of the industry depends on investing in younger consultants alongside technology. She noted a shift away from traditional generalist roles, with technology playing a greater role in shaping the consulting workforce.

Cybersecurity is expected to be a significant growth area in 2026. Isacsson pointed to recent high-profile cyberattacks against Jaguar Land Rover and Marks & Spencer as factors driving corporate investment in protective measures. This focus, alongside energy-related advisory work, is helping to sustain demand for consulting services.

While the sector’s growth last year and the forecast for 2026 fall short of the more robust averages seen between 2021 and 2023—when the industry expanded by about 17 percent annually—the improving outlook is welcomed by many consultants who experienced periods of reduced work. The MCA noted that service exports have been a notable success, with revenues from international clients rising by 9 percent.

The United States and Canada remain key markets, with British consulting revenues from North America increasing by 19 percent. Growth in the Middle East and Africa region also continued, up by 15 percent, despite a slowdown in private sector demand from Saudi Arabia. Isacsson observed that public sector demand in the Middle East remains strong.

Chancellor Rachel Reeves praised the UK consulting industry as “a world-class export success story,” underscoring its growing influence in global markets amid shifting geopolitical and economic conditions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.