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 2025-26, hard coal mining revenue is forecast to sink at a compound annual rate of 14.4% to £47.2 million, including a substantial 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 has slashed the number of UK coal mines o...

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• 2. Organic Basic Chemical Manufacturing in the UK

  Business Environment Risk for 2026: 7

  The UK organic basic chemicals sector is in decline, driven by high-profile closures and continued upstream market volatility. Major shutdowns like SABIC’s Wilton cracker plant and reduced output at Grangemouth have slashed local production, making the industry more dependent on imports and raising questions about the UK’s global competitiveness. Demand is also shifting as downstream customers, especially plastics producers, face policy moves against fossil-based products and greater oil pric...

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• 3. Petroleum Refining in the UK

  Business Environment Risk for 2026: 7

  Petroleum refining companies in the UK produce a wide variety of products. Fuels for transport and heating are the most common, with petroleum products for transport consistently accounting for almost three-quarters of product demand, according to DESNZ. Industry revenue is expected to swell at a compound annual rate of 8.8% over the five years through 2025-26 to £44.8 billion, including a forecast dip of 2.2% in 2025-26, owing to staggering volatility in crude petroleum and fuel prices in re...

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• 4. Sugar Production in the UK

  Business Environment Risk for 2026: 7

  The UK Sugar Production industry is dominated by just three major companies: British Sugar, T&L Sugars and Ragus. This concentration allows them to exert significant control over production but also requires strategic navigation of challenges to maintain market stability and competitiveness. The industry's close ties to farming significantly influence its performance, prompting substantial investments in sustainability to ensure long-term viability. Producers are also grappling with risin...

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

  Business Environment Risk for 2026: 7

  Over the five years through 2025-26, the steel tube, pipe and related fitting manufacturing industry's revenue is expected to decline at a compound annual rate of 5.1%, with revenue projected to fall 7.7% in 2025-26 to £1.1 billion. The industry has endured a sustained double cost squeeze, with benchmark hot-rolled coil prices remaining elevated and UK energy costs running significantly above those in France and Germany, limiting manufacturers' ability to pass through cost increases to downst...

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• 6. Iron & Steel Manufacturing in the UK

  Business Environment Risk for 2026: 7

  Over the five years through 2025-26, iron and steel manufacturing revenue is expected to climb at a compound annual rate of 1.9% to £7.7 billion. Heaps of cheap steel on the global market have undercut British prices and caused big trade partners like the EU to institute import quotas. Unable to lower prices because of high labour costs and environmental charges, industry giants like British Steel and Tata Steel have stated a need for government intervention to continue operating. Both compan...

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• 7. Online Footwear Retailers in the UK

  Business Environment Risk for 2026: 7

  Over the five years through 2025-26, online footwear retailing revenue is forecast to plummet at a compound annual rate of 7.1% to reach £1.2 billion. Inflationary pressures and the cost-of-living crisis have tightened consumer purse strings, leading them to push non-essential purchases to the back of their priority lists. While shoes are considered by many to be essential, high-end, luxury footwear retailers saw a decline in demand for their high-margin products, weighing on industry profita...

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• 8. Electrical Equipment Repair & Maintenance in the UK

  Business Environment Risk for 2026: 6

  Revenue is expected to expand at a compound annual rate of 2.5% over the five years through 2025-26 to £896.8 million, including a dip of 0.5% in 2025-26. Modest GDP growth and construction sector expansion have boosted the need for maintenance services on ageing equipment, though companies choosing replacements have weighed on repair work. According to the Office for Budget Responsibility, the UK economy expanded by 1.1% in 2024 and is predicted to climb by 1.5% in 2025, with cautious busine...

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• 9. Gin Production in the UK

  Business Environment Risk for 2026: 6

  UK gin producers face a mixed picture. The waning interest in gin reflects a natural tapering off after the explosive growth of the 2010s, driven by regulatory changes that sparked the “gin renaissance.” This boom, capitalised on by a flood of new distilleries and product innovation, made gin a staple in both bars and homes. But as the initial excitement fades and consumers’ tastes change, producers are grappling with declining consumption volumes that weigh on revenue. The downturn has been ...

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• 10. Dating Services in the UK

  Business Environment Risk for 2026: 6

  The UK dating services industry has experienced dramatic growth. The surge in smartphone and internet adoption, along with the social acceptance of meeting a partner online, has been the primary driver of this revenue growth. The gamification of mobile dating apps, by implementing swiping mechanics to indicate a yes or no to other users, has been vital in increasing engagement with dating services. Five years ago, the pandemic was a key driver of revenue and profit surges. With consumers unab...

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