UK accountancy firm numbers rise for first time since 2019

The number of accountancy firms in the UK increased in 2026, marking the first annual rise since 2019, Rapport Digital reported citing figures from the Office for National Statistics (ONS).

There were 40,605 accountancy firms in March 2026, up 1.6% from a year earlier. It was the largest annual increase since 2017.

Firm numbers rose in every UK region and nation, the first time this has happened since 2016.

The increase was driven by limited companies, whose numbers rose by 790 during the year. Sole practitioners and partnerships continued to decline.

Since 2019, the number of sole practitioners has fallen by nearly a third, while partnerships have dropped by more than a third.

Despite the 2026 increase, the UK has around one in 14 fewer accountancy firms than it did in 2019.

The number of businesses has risen more quickly than the number of firms.

There are now 69 businesses for each accountancy firm, compared with 62 in 2019.

Northern Ireland reported the fastest growth in accountancy firms, with a 3.6% increase. Yorkshire and The Humber followed with growth of 2.9%.

London added 195 firms, the largest numerical increase of any UK region and its first rise since 2017. However, the capital still has around one in seven fewer firms than in 2019.

Northern Ireland had 113 businesses for every accountancy firm, compared with 57 in London.

Rapport Digital managing director Ian Gargett said: “Britain hasn’t run out of businesses that need an accountant. There are more of them now than in 2019. What it’s run short of is accountancy firms.

“Many of the ones that disappeared didn’t fail. They were bought by private equity groups, or their owners retired with no one to take over. “For the firms that are left, that’s a rare position to be in: more potential clients and fewer competitors, just as Making Tax Digital sends millions of people looking for help.”