Industries with Riskiest Business Environments in United Kingdom in 2026

• 1. Hard Coal Mining in the UK

  Business Environment Risk for 2026: 8

  Over the five years through 2024-25, hard coal mining revenue is forecast to sink at a compound annual rate of 39.7% to £11.9 million, including an 83% fall in revenue in 2024-25 due to Merthyr (South Wales) stopping trading as it finished selling its coal reserves in 2023-24. Leaving Energybuild as the only large-scale coal mine in the UK. This follows the long term decline of the industry, caused by falling sales and weak profitability, which slashed the number of UK coal mines in the UK fr...

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• 2. Steel Tube, Pipe & Related Fitting Manufacturing in the UK

  Business Environment Risk for 2026: 7

  The Steel Tube, Pipe and Related Fitting Manufacturing industry has been affected by high volatility in global upstream and downstream markets. British oil and gas stocks are sinking, with only hard-to-reach reserves remaining untapped. Even during times of successful exploration, volatile global oil prices have reduced the incentive for production. Ballooning energy prices caused by the Russia-Ukraine conflict have eaten away at industry profitability as the manufacture of steel products is ...

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• 3. Healthcare Construction in the UK

  Business Environment Risk for 2026: 7

  Industry contractors build, repair, maintain and alter health and social care buildings and facilities on behalf of private and public-sector entities. While private finance plays a vital role in the funding of healthcare real estate and infrastructure development, public funding underpins health construction in the UK, with activity contingent on the capital departmental expenditure limit (DEL) of the Department of Health and Social Care (DHSC). Healthcare estate provides the foundations for...

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• 4. Clothing Manufacturing in the UK

  Business Environment Risk for 2026: 7

  The UK Clothing Manufacturing industry is in decline owing to severe labour shortages, surging input prices and intense import competition. Over the five years through 2024-25, revenue is expected to contract at a compound annual rate of 6% to £2.2 billion. This is partly due to a sharp revenue decline in 2020-21 caused by disruption created by COVID-19, followed by the cost-of-living crisis slashing disposable incomes in 2022-23. Over 2024-25, revenue is expected to tumble by 1.8% as inflati...

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• 5. Vodka Distilleries in the UK

  Business Environment Risk for 2026: 7

  Alcohol consumption, demand from pubs and bars, disposable income, health consciousness and the exchange rate heavily influence the revenue of vodka distilleries. Competition in the vodka industry is fierce, with many of the most popular brands in the UK being produced internationally. Other spirits also pose strong competition. However, AU Vodka has emerged as the largest UK-produced vodka brand, significantly boosting the industry. Its revenue has increased substantially over the last five ...

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• 6. Wired Telecommunications Carriers in the UK

  Business Environment Risk for 2026: 7

  Over the five years through 2024-25, wired telecommunications carriers' revenue is set to contract at a compound annual rate of 5.3% to £15.2 billion. The slump in revenue has been driven by a drop in landline use, intensifying competition among providers, stimulating price reductions and the shift towards wireless connections as they improve in speed. The proliferation of mobile phones has dampened demand for wired telecom, exacerbated by innovations like the rollout of 5G. As consumers shif...

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• 7. Off-Licences in the UK

  Business Environment Risk for 2026: 7

  Off-licences are facing major hurdles. Supermarkets have been undercutting them on prices and online retailers have been further eating into the market, undercutting off-licences because they don't have to pay for rent or customer-facing staff. The freezing of alcohol duty until February 2025 should alleviate profit volatility, as off-licences can purchase alcoholic goods at a lower cost per unit.

  In 2024-25, inflation remains high, dampening consumer confidence and tightening househol...

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• 8. Live Animal Wholesaling in the UK

  Business Environment Risk for 2026: 7

  The price and demand for cattle, sheep, pigs, poultry and horses strongly influence live animal wholesalers' revenue. Abattoirs, a significant market for wholesalers, are contending with labour shortages, falling livestock numbers, tightening regulations and low profitability - constraining the potential market for wholesalers. Teething issues regarding new trade certifications at EU-UK borders led to live animal exports collapsing to the EU. The export of live animals for fattening or slaugh...

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• 9. Gas Supply in the UK

  Business Environment Risk for 2026: 6

  The gas supply industry has experienced a period of significant volatility in recent years. Industry regulator Ofgem encouraged greater competition in the industry prior to the pandemic, leading to a rapid rise in the market share of independent suppliers. This culminated in the effective break-up of the former Big Six energy suppliers in January 2020, following OVO Energy's acquisition of SSE's domestic customer book. However, record-high wholesale prices have reversed the upward trend in ma...

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• 10. Tobacconists in the UK

  Business Environment Risk for 2026: 6

  Over the five years through 2024-25, the Tobacconist industry is forecast to fall at a compound annual growth rate of 4.5% to £504.9 million. Rising public awareness of smoking’s health risks, spurred by intense government and activist anti-smoking campaigns, has significantly slashed sales alongside overall smoking rates. Stringent legislation that has arisen alongside smoking rates has proved challenging for tobacconists, compounded by stiff competition from supermarkets and convenien...

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