Professional and business services

The UK government’s ambition to make its Professional and Business Services (PBS) sector the world’s most agile and globally competitive is highlighted by its position as one of the eight growth sectors in the UK’s Modern Industrial Strategy. The sector is backed by targeted support for emerging technologies like Lawtech, Accountancy Tech, HR Tech, PropTech, and RegTech, presenting a compelling investment opportunity. Join a market with strategic focus on high-growth frontier industries, simplified SME procurement access, and the development of innovation hubs to accelerate sector expansion.

Opportunity highlights

The UK’s PBS sector is a dynamic engine of growth and innovation, delivering world-class expertise that drives businesses forward across every industry.

Legal Services

Generating £51.9 billion in 2024 and attracting 7 of the world’s 20 largest legal services firms with its forward-leaning approach to legal services, the UK is a global hub for legal services. Renowned for its English law and with an independent and respected judiciary, the UK is the destination for arbitration and litigation, with English law governing 40% of global corporate arbitration, and £20 billion of mediation cases annually.

UK firms are well positioned to capitalise on contract law and dispute resolution, with 64% of litigants from outside the UK in 2023-24. Expertise in Environmental, Social and Governance (ESG) offers growth opportunities as demand for net zero clauses and climate law rises. With strong ties between legal and financial services, investment prospects remain robust and expanding in this profitable sector.

Lawtech

The UK Lawtech sector is estimated to reach an annual worth of £22 billion by 2026. It currently consists of 44% of Europe’s lawtech start-ups, and £2.2 billion of annual investment by 2026. Backed by a flexible regulatory environment and tech-neutral regulatory approach, LawtechUK has estimated a £11.4 billion per year opportunity for those providing affordable and accessible services to small and medium-sized enterprises (SMEs) and consumers. Likewise, firms can leverage the UK’s leading venture capital ecosystem.

Consulting

The UK is future proofing its consultancy industry. There has never been a better time to invest. In 2024 alone, revenue for the sector hit £91.9 billion with £46.8 billion in exports, with 28% of those fee incomes coming from overseas.

The sector anticipates growth from increasing demand for advisory services around climate transition, digital transformation and AI.

The UK’s AI assurance market, already driving digital transformation advisory, is set to grow from £1.01 billion to £6.53 billion over the next decade, creating added opportunities in cybersecurity, consulting for compliance and risk management.

Accountancy

Home to the world’s largest accountancy firms and the Big Four: PwC, Deloitte, EY, and KPMG, the profession contributes £52.3 billion to the UK. Accountancy in the UK continually delivers excellence and profitability, with total fee income increasing by 13.2% in 2023, whilst audit fee income increased 23.2% the same year. The UK’s accountancy sector’s exports totalled £8.2 billion in 2024, having increased by 38% year on year from 2021 to 2022.

Accountancy firms in the UK are also positioned to capitalise on integrated AI as well as cloud accounting, data analytics, and blockchain technology.

HR Tech and HR Services

The UK’s HR market was valued at £2.2 billion in 2024, with HR and payroll software publishing accounting for £1.5 billion. UK HR firms are experiencing growing demand from high-growth, specialised sectors such as technology, financial services, and sustainability.

Emerging Technologies (RegTech and PropTech)

The UK’s property technology (PropTech) and regulation technology (RegTech) markets are valued at £7.12 billion and £407.8 million respectively. The UK’s PropTech market ranks first in Europe and is expected to grow by 19.7% by 2030, while the RegTech market is forecast to grow by 18.50%, making the UK the premier destination for innovative businesses in these fields.

Commercial maturity

The PBS sector accounts for 14% of the UK workforce, employing 5 million people. With a well-respected global status, the UK attracts both significant international investment and is the second largest exporter of business services in the world.

This is a story that stretches far beyond Canary Wharf, with 50% of gross added value originating outside of London and the South East. More than half of the 500,000 jobs created in PBS between 2015 and 2023 originated outside of London and the South East.

Key UK assets

The PBS sector plan published earlier this year has identified six areas with the greatest PBS strengths and opportunities for sector growth.

Greater London

Full service offering; strengths in legal services, accountancy, management consultancy, and PBS tech (Lawtech, Accountancy Tech, HR Tech, PropTech, RegTech).

West Midlands

Full service offering with growing strengths in PBS tech (PropTech, Lawtech).

Greater Manchester

Full services offering; strengths in legal services, accountancy and auditing, management consultancy, real estate and PBS tech (Lawtech).

Liverpool City Region

Full service offering; strengths in legal services (maritime, life sciences), accountancy and auditing, business advisory, and PBS tech (Lawtech).

West Yorkshire

Full service offering; strengths in legal services (M&A, banking, litigation, real estate, insolvency), accountancy, and PBS tech (Lawtech and PropTech).

Edinburgh-Glasgow corridor

Full service offering; strengths in legal, consultancy, accounting and audit (green economy) and PBS tech (notably RegTech).

R&D capability

The UK is leading Europe’s innovation, with business sector R&D expenditure accounting for 71% of total R&D expenditure in 2022. As part of the UK’s Modern Industrial Strategy, R&D funding will be increased to £22.6 billion per year by 2029-30.

The UK government will increase support for PBS by shifting UK Research and Innovation (UKRI) budgets towards the research and innovation priorities set out in the Sector Plans. It will work with UKRI, Innovate UK (IUK) and the Professional and Business Services Council (PBSC) to identify high-potential opportunities for increased R&D investment.

Business and government support

The UK government is boosting business growth through an increase in the British Business Bank’s financial capacity to £25.6 billion, trade digitalisation, and enhanced support for SMEs. This includes improved access to overseas markets and simplified public procurement for SMEs. Additional support[TF1] includes enhanced UKEF support, negotiations for Recognition of Professional Qualifications (RPQ) agreements with the EU, and new programmes to facilitate innovation and technology adoption.

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