Professional services urge government to bridge skills and tech gap

Ahead of the long-awaited Industrial Strategy for professional and business services, RSM UK calls on the government to support the industry with upskilling, reskilling and innovation to address the skills shortage as it moves towards greater automation.

The UK’s professional and business services industry is one of the few industries experiencing consistent growth throughout 2024, directly contributing over £270bn annually to the economy. Since 2010, the industry has maintained an annual growth rate of 2.5%, representing 12% of the UK’s Gross Value Added (GVA). 

Additionally, figures also indicate that professional and business services support 5.04m jobs, making up 14% of total employment in the UK. However, access to skilled labour remains a challenge, with almost a third of firms reporting skills shortages, with senior and technical roles hardest to recruit for.

Hywel Pegler, Head of Professional and Business Services at RSM UK, said: “Professional and business services are one of the UK’s key drivers of growth and productivity, contributing millions to the UK’s economic output, employing 14% of the UK’s workforce, and helping businesses in other industries to raise finance, scale up, export and invest. The industry is recognised globally for its expertise, quality and innovation, so it’s no surprise to see it feature as a growth-driving industry. However, as with all growth-driving industries, professional and business services firms have their own obstacles to face, particularly in relation to recruitment. 

“We know that access to skilled labour is a challenge for the industry, especially in more senior and specialist roles, yet people and skills are key to the success of any growth-driving industry or business. The Industrial Strategy therefore needs to embed policy which incorporates upskilling and reskilling, especially as firms look to embed more technology and AI-driven processes to improve efficiencies. There’s also scope for a cross-industry approach towards upskilling, as data shows that consulting services in AI and digital technology are expected to drive the greatest growth within energy, infrastructure, and digital and technology sectors. Leveraging technology and AI to innovate and future-proof business models will also help mitigate the impact of rising cost pressures including increases to employers’ National Insurance contributions.” 

He added: “To support this transition to new technology, the government needs to foster greater connectivity with UK universities which have research, development and innovation teams (RDI) specialising across many of the growth-driving industries. Professional and business services already hire nearly 20% of university graduates annually, but working more closely with RDI will be essential to staying competitive, driving local and national productivity, improving client service and maintaining profitability.”