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Seizing the growth opportunity in professional services
How firms can grow through funding, AI, resilience and sector expertise - insights from the CBI-Lloyds Industrial Strategy Roadshow.
Read time: 4 mins Added: 04/06/26
Speakers from the recent professional and business services event as part of the CBI Industrial Strategy Roadshow discuss the key outputs and the arising opportunities in the sector.
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CBI Industrial Strategy Roadshow - Professional and Business Services
0:07
There are a number of ways that firms can achieve their growth, whether or not that's through organic growth in new markets, new geographies or M&A activity, inorganically through lateral hires or new service lines and new product lines.
0:21
In terms of a broader funding toolkit, my advice would be that firms need to look at diversification of funding sources.
0:28
Traditionally this sector is very much relying on partner capital drawings, retained profits.
0:33
There are other tools that firms can use, whether or not that's bank debt or we're starting to see firms look into the private placement market or for external capital sources.
0:45
Modernization of professional services does of course mean implementing tech and and thinking about AI, but it's more than that.
0:52
It's thinking about the skills we all need.
0:55
However, senior or junior we are in our organisation, each of us needs to be curious and willing to learn new skills, new ways of working and that's what's setting professional services firms apart from each other.
1:10
Thinking about some of the key policy areas that have come up, I think a big one on top of members minds has been AI.
1:16
Obviously that is transforming a lot of businesses.
1:18
AI is bringing huge value to us in professional services.
1:22
It's allowing many of us to do our day jobs faster, but it's also allowing us to do things in a different way for our clients and use different skills, which is totally satisfying.
1:34
We've heard a lot about cyber and the impact that cyber is going to have, both on those that are trying to adopt cyber, but also on the impact it has on the wider economy.
1:45
As professional services fans look to their growth ambitions for the next 18 months, In terms of what they need to do, the conversations that they need to have internally, I think first of all they need clarity on what their strategic goal and ambition is.
1:58
I think they need to get the buy in from their partnership, their group and have clarity on what that goal means to achieve.
2:05
The way we're representing business is we have communications across the whole of government departments.
2:10
We're working very closely with the teams within DBT that are working on the different sector plans, but also the wider industrial strategy team.
2:17
The key part where the CBI is playing a role is it's not just DBT who are owning this, it's wider government.
2:23
Good support from our partners, be that our clients and stakeholders we work with as we modernise and grow, is really for them to be our critical friend.
2:32
Tell us what's working, tell us where the challenges are and be really honest with us because that means that we can actually utilise that feedback and build it into making something that works for clients.
Professional and business services is one of the UK’s greatest economic strengths. From law and accountancy to consultancy, recruitment and IT, the sector is estimated to grow to £322 billion in gross value added (GVA) by 2035, based on current trends1.
Its importance extends beyond its own balance sheet. It underpins the wider economy, helping businesses invest, transform, manage risk and enter new markets. That is why the sector has been named one of the eight high-growth areas in the UK’s Modern Industrial Strategy.
At a recent CBI and Lloyds event, part of the CBI Industrial Strategy Roadshow, business leaders and policymakers explored how firms can capitalise on this moment. The message was clear: growth is there to be taken, but firms must evolve how they invest, operate and compete.
The UK’s edge is built on talent, trust and expertise
The UK benefits from a strong talent pipeline, supported by leading universities and extensive in-firm training. This model has made UK firms globally competitive and supports high-value employment. Increasingly, that employment is spread nationally, with regional hubs developing specialist strengths.
The challenge is maintaining this edge. AI is reshaping entry-level work, client expectations are rising, and firms must compete harder for talent.
Funding strategy is business strategy
The way firms fund growth is changing. Traditional reliance on partner capital, retained profits and bank debt is being stretched by competing demands: AI investment, data infrastructure, cyber resilience and expansion.
Partnership models are also evolving. While effective, traditional partnership models can limit long-term investment. Generational shifts are adding pressure, with younger partners often less willing to commit significant capital. As a result, firms are exploring alternative models, including corporate structures, employee ownership and external investment. External capital is becoming a more active consideration in the UK.
Funding is no longer an operational afterthought. Firms need a broader toolkit, from working capital and loans to flexible facilities and treasury support for international growth.
Lloyds supports firms in aligning financing with strategy, including how external capital can complement traditional structures. In 2026, Lloyds Banking Group plans to make more than £35 billion of new finance available to companies operating and investing across the UK. This finance extends across all sectors, including professional services firms seeking to modernise and scale.
AI is reshaping the knowledge economy
AI is already transforming how firms deliver value, automating routine work, improving research and enhancing efficiency. While the immediate focus is productivity, the strategic impact is broader. Efficiency gains can free professionals to focus on higher-value advisory work, enabling new services and growth.
Successful adoption goes beyond technology. Leading firms are combining investment in tools with better data, training and governance. For smaller firms, AI can level the playing field, with accessible tools enabling experimentation without large-scale investment. Human judgement remains central, but technology can enhance how it is applied.
Resilience is becoming a commercial advantage
As firms digitise, resilience is critical. Firms hold highly sensitive client data, making cyber resilience essential. Cyber risk is now a “when, not if” scenario, requiring strong controls, training and incident response planning.
Clients increasingly assess cyber capability as part of due diligence. As a result, resilience is not just defensive, it is a source of trust and competitive advantage.
Operational resilience extends beyond cyber, including regulation, workforce challenges and evolving working patterns. Firms that succeed will integrate these into long-term strategy.
Skills remain the sector’s biggest constraint
People remain central to the sector, but workforce planning is becoming more complex as technology reshapes roles. Firms must align talent strategy with growth, rethinking junior roles, building digital skills and creating flexible career paths.
Regional strengths will play a key role. Around 60% of jobs are already outside London and the South East, with clusters developing specialist expertise. The opportunity lies in building connected regional specialisms that can compete globally.
Supporting firms in practice
Lloyds supports a broad range of firms, from large advisory businesses to SMEs. Despite differences in scale, common challenges remain - funding growth, investing in technology, managing risk and attracting talent.
Our approach combines capital with sector expertise, industry insight and access to networks. Relationship managers bring sector understanding, including Law Society accreditation for law firm specialists.
One example is Stephens Scown, an employee-owned law firm, which used a £3.3 million loan to refurbish its Exeter office and improve sustainability credentials. This illustrates how strategic funding can support long-term investment and resilience.
Turning ambition into action
The next three to five years will be decisive. Firms face rising expectations, rapid technological change and more complex operating environments. The most successful firms will align funding with growth strategy, invest in talent and technology, and manage risk proactively. Joined-up support, combining funding, insight and sector expertise, will be critical.
Professional services is already one of the UK’s strongest sectors. With the right investment and strategy, it can play an even greater role in driving productivity and growth.
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Any views, opinions or forecasts expressed in this document represent views or opinions of forum participants and are not intended to be, and should not be viewed as advice or a recommendation from Lloyds Bank or any other party.