Industries with Least Riskiest Business Environments in United Kingdom in 2026

• 1. Investment Trusts in the UK

  Business Environment Risk for 2026: 3

  Investment trusts have navigated a turbulent environment over recent years, characterised by regulatory changes and uncertain economic conditions. While demand for investment trusts has stayed fairly strong, alternative investment vehicles like open-ended investment companies have put pressure with their competitive prices, encouraging investment trusts to band together through consolidation to drive down fees charged thanks to economies of scale.

  Revenue is expected to grow at a compo...

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• 2. Renewable Electricity Generation in the UK

  Business Environment Risk for 2026: 3

  Greater awareness about the effects of climate change has driven an aggressive decarbonising strategy spearheaded by renewables. Government targets and incentives encourage major investment in renewable assets among UK energy giants. Technology developments have boosted potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. According to the Department for Energy Security and Net Zero, the share of electricity generated by maj...

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• 3. Private Equity in the UK

  Business Environment Risk for 2026: 3

  The UK is the largest European centre for the management of private equity (PE) investments and funds, second only to the US in terms of global importance. PE firms pool investment funds or use leverage to purchase other companies. Their goal is to improve a company's performance by introducing managerial and operational changes, before selling the company for a profit. More CEOs are wanting to retain control of their companies, increasing the number of minority stake buyouts. PE firms profit...

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• 4. Agricultural Insurance in the UK

  Business Environment Risk for 2026: 3

  Insurers in the Agricultural Insurance industry have contended with poor investment returns and volatility in underwriting returns in recent years. Global warming is making its mark with the frequency of natural disasters, particularly flooding, on the rise, driving up claim volumes. Another consideration for insurers is the Solvency II directive before Brexit. The accumulation of such difficult conditions has led smaller insurers in the industry to diversify and focus on other high-margin in...

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• 5. Precision Agriculture Systems & Services in the UK

  Business Environment Risk for 2026: 3

  Revenue is forecast to climb at a compound annual rate of 2% over the five years through 2024-25 to £141 million. The primary drivers of revenue growth are agricultural income and robust government support through several schemes and grants which allow small and medium farms to adopt precision farming systems. Significant inflationary pressures in 2022-23 actually aided farmers, as rising output prices led to soaring agricultural income, giving farmers more money to invest in new technology a...

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• 6. Non-Alcoholic Beer Production in the UK

  Business Environment Risk for 2026: 3

  The non-alcoholic beer industry has seen stable growth in recent years, with the pandemic giving non-alcoholic beer producers an extra push. As people were confined to their homes, many took the opportunity to focus on their health. The rise of health and wellness content across social media platforms has also highlighted the risks associated with alcohol consumption. As a result, there’s been a noticeable downward shift in alcohol consumption, particularly among younger generations. This tre...

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• 7. Medical & Orthopaedic Supplies Retailers in the UK

  Business Environment Risk for 2026: 3

  The Medical and Orthopaedic Supplies Retailers industry has endured tough operating conditions. The NHS is a significant opponent, offering free treatments and products to qualifying patients. Competitive threats from the private sector, pharmacy chains and dispensing chemists have persisted. Additionally, online-only operators have expanded their product offerings and captured market share from specialist retailers. Despite this, over the five years through 2024-25 revenue is expected to exp...

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• 8. Reinsurance in the UK

  Business Environment Risk for 2026: 3

  Reinsurers' revenue is expected to have crept upwards at a compound annual rate of 1.6% to £23.1 billion over the past five years; this includes a forecast rise of 4.1% in 2024-25 when the average profit margin will likely reach 5.5%.

  For the sixth time since 2017, natural catastrophe losses exceeded $100 billion (£81 billion) in 2023. The frequency and severity of natural catastrophes intensify with climate change, and spiral...

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• 9. Actuarial Consulting Services in the UK

  Business Environment Risk for 2026: 3

  Actuarial consulting firms provide various services to businesses, including pension, insurance, enterprise risk, financial advice and organisational design consulting. Actuarial consulting services are sought after by businesses across all sectors of the economy, providing firms with a steady demand and limiting revenue volatility. Actuarial Consulting Services revenue is expected to swell at a compound annual rate of 4% over the five years through 2024-25, including a 2.7% climb in 2024-25 ...

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• 10. Fund Management Activities in the UK

  Business Environment Risk for 2026: 4

  Fund management activities revenue is forecast to rise at a compound annual rate of 0.7% over the five years through 2024-25 to £28.2 billion, including estimated growth of 7.8% in 2024-25. Fund managers have had to navigate turbulent markets in recent years, hit by aggressive monetary policy, geopolitical tensions and muted economic growth. Such uncertainty made investors antsy, triggering volatile capital flows and creating unstable fee income.

  Economic uncertainty surrounding market...

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