Government cuts impact consultancy sector

Environmental consultancy contracts from the public sector fell 7.9% in 2014 as a result of government cuts, according to market research data.

In its annual report on the state of the UK environmental consultancy market, Environment Analyst found that revenues from the public sector in 2014 stood at £293 million, equivalent to 20.3% of the total market, down from around one third in 2010. 

AECOM, Atkins, Jacobs, Mott Macdonald and Ricardo Energy and Environment were identified by the analysts as the firms most dependent on public sector contracts. 

However, the public sector decline was more than offset by increased spending on consultants by private companies and regulated industries, which together saw 4.4% year-on-year growth. These account for almost 80% of the total spent on environmental consultancy services in 2014. 

Demand was particularly strong from ...

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