It’s the perennial problem holding back companies, curbing improvements in the economy, and frustrating efforts to raise living standards. You can’t speak to a business leader without hearing about it, read a newspaper without seeing its impact, or attend a board meeting without discussing it. Britain’s productivity puzzle has been hampering the country’s economic growth for far too long, and it’s time to tackle it head on.
For the UK’s management consultants, driving productivity and efficiency lies at the very heart of our work. With the country globally recognised as a centre of excellence for professional services, clients from across the world come to us specifically because they know we can support with transformation, technological innovation, streamlining processes, and helping organisations to achieve far greater results with fewer resources. We work with 90 per cent of FTSE 100 companies and have partnered with every department in government, as well as serving overseas governments and clients who hold the UK consulting sector in the highest regard.
Like many industries, we are having to do things differently in these difficult and uncertain times. The world is changing, and we are adapting with it. Our recent members’ survey has given us an insight into what that change looks like, and how consulting holds the key to unlocking growth for the UK. There are three major ways we are doing just that.
The first is AI and digital transformation. The large majority of our work is focused on helping clients to rid themselves of outdated technology platforms, genuinely grasp digital upgrades, and understand the data they collect, in turn improving business performance and the bottom line.
Some of these solutions for boosting productivity include using some form of artificial intelligence. More and more clients, from construction to defence, retail to insurance, require subject specialists and deep sectoral expertise from consulting firms who offer innovative solutions. That’s why two thirds of consultants believe that AI will be the area of consulting expertise seeing the biggest growth in demand over the next 12 months.
Our sector is responding to this demand by hiring and training top consultants in AI and digital. In fact, we’re leading the way: three quarters of our member firms are planning to invest significantly in AI over the next couple of years. The message is clear: if your business wants to reap the benefits of AI, consulting can offer the expertise and advisory services to help find the value in this new technology.
The second way to boost productivity is by investing across the UK, ensuring we make the most of our great towns, cities and regions, utilising all the benefits they have to offer. London is responsible for a huge proportion of the UK’s GDP, but we will never grow as a country unless we unleash the potential of every region and nation.
Consulting is part of this regional revolution, with more and more offices opening right across the UK. Our data shows that 40 per cent of our members are looking to expand outside London this year. More regional offices mean more regional hires: last year, for the first time, consultancies hired more people outside of London than within it.
With bases across Britain, firms are not only boosting the local economy; they can better serve clients and boost regional growth and productivity too. Consultancies, large and small, are already bringing benefits to every corner of the UK. One example is a project undertaken with energy company SSEN, which powers millions of homes across Scotland and southern England. They sought the help of a consultancy to improve performance in the face of increasing demand. By implementing a staff-centred programme that overhauled culture and behaviours, they were able to improve productivity by 30 per cent and create faster quotes and network connections for customers.
The third key to productivity is mobilising more of the country’s talent. For many years, consulting has been leading the way in expanding the pool from which it recruits, attracting a greater diversity of people from different backgrounds into the profession. Today the sector is proud to be front and centre in its commitment to diversity. We are renowned as a leading employer of women and people from minority ethnic groups. We are also making huge strides in promoting social mobility: increasingly hiring the brightest and the best, wherever they’re from.
One particularly dramatic shift in recruitment has come to light in our recent members survey: the proportion of young consultants who have been to Russell Group universities has fallen from 73 per cent in 2011 to 30 per cent today – its lowest point ever. This is evidence of a deliberate effort by the sector to focus on social mobility and spread opportunities more widely. Not only is this a fairer approach; it drives results. We know that the better we represent our society, the better we serve our society.
By boosting the productivity of UK plc, we’re boosting the growth of UK GDP. That’s why last year the government identified us as a growth-driving industry in their Industrial Strategy. Not only are we a trusted partner to other sectors, but we are a growing sector ourselves. Though the past year has been challenging, in recent years the overall size of the consulting sector in terms of revenue has doubled. Our research projects 6.4 per cent growth in 2025 and 8.7 per cent the year after – and that is down, in large part, to the changes we’re making, including embracing AI and employing the might of the whole of Britain.
The Prime Minister has put productivity and growth at the heart of his mission for government. But government alone won’t be able to bring about the gains we desperately need. It is incumbent on the private sector to make it our mission too. And by adapting to new challenges, playing to our strengths, and helping businesses to grow, it is one that UK consulting has proudly accepted.
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