Businesses
UK Utilities Lead Business Borrowing Growth as Sector Debt Nearly Triples in a Decade
08 Oct 2026
New research from British Business Funding finds electricity, gas, and water companies recorded the fastest growth in bank borrowing between 2016 and 2026, while property ownership and leasing remain the UK’s biggest commercial borrowers.
29 September 2026 — UK utility companies have recorded the fastest growth in business borrowing over the past decade, with outstanding bank debt in the electricity, gas and water supply sector rising by almost 185% between 2016 and 2026, according to new research from British Business Funding.
The study analysed lending across 15 UK industries, comparing outstanding loans in 2016 with borrowing levels in 2026. It examined overdrafts and non-overdraft borrowing separately to identify which sectors have become more dependent on external finance over the past ten years.
Electricity, gas and water supply ranked first, followed by transport, storage and communication, property ownership and leasing, estate agency and property services, and manufacturing.
Utilities record the fastest growth in borrowing
The electricity, gas and water supply sector saw borrowing rise from £15.44 billion in 2016 to around £44 billion in 2026.
That represents an increase of approximately £28.56 billion, or 184.9%, making it the fastest-growing borrower among the industries analysed.
British Business Funding found that only around 3.6% of the sector’s 2026 debt sits in overdrafts, suggesting the rise has been driven primarily by longer-term loans rather than short-term borrowing.
That pattern is consistent with the capital-intensive nature of utilities, where major infrastructure projects often require long repayment periods and large upfront investment.
A financial expert from British Business Funding said continued investment in cleaner energy and infrastructure could keep borrowing elevated:
The push toward cleaner energy and better broadband coverage across the UK still has a long way to go, so utility and telecoms companies are likely to keep borrowing heavily in the years ahead.
Transport and communications debt rises 63%
Transport, storage and communication ranked second.
Borrowing in the sector increased from £29.3 billion in 2016 to around £47.7 billion in 2026, a rise of £18.42 billion, or approximately 62.9%.
The composition of that debt differs from utilities. Around £5.2 billion is held in overdrafts, representing close to 11% of total borrowing.
That points to a greater reliance on short-term credit alongside longer-term loans.
For businesses operating across transport, logistics and communications, borrowing can reflect a mix of infrastructure spending, fleet investment, technology upgrades and working-capital requirements.
Property remains the biggest borrower by value
Property ownership and leasing businesses ranked third for percentage growth, but they remain the largest commercial borrowers by total value.
The sector owed approximately £203 billion in 2026, up from £130.38 billion in 2016.
That is an increase of £72.68 billion, the largest absolute rise among all sectors in the study.
Despite the size of the borrowing, less than 2% of the total sits in overdrafts, indicating that the vast majority is tied to longer-term financing.
The result highlights how heavily property ownership and leasing relies on debt-funded investment, particularly where acquisitions and development are financed over extended periods.
Estate agency and property services also increase borrowing
Estate agency and property services ranked fourth, with debt rising from £7.08 billion to £10.62 billion over the decade.
That equates to an increase of nearly 50%.
While the sector’s overall loan book is much smaller than property ownership and leasing, the growth rate remains significant.
Overdrafts account for around 5.4% of total borrowing, making short-term credit a more visible part of the financing mix than in the broader property ownership sector.
Manufacturing shows one of the highest overdraft shares
Manufacturing ranked fifth, with borrowing increasing by approximately 27%.
Total outstanding borrowing reached almost £45.8 billion in 2026, compared with £35.96 billion in 2016.
A notable feature is the industry’s use of overdrafts. Around £9.94 billion of manufacturing debt is held in overdraft facilities, representing close to 22% of total borrowing.
That is one of the highest short-term borrowing shares among the major sectors in the study.
For manufacturers, the reliance on overdrafts may reflect working-capital pressures linked to inventory, input costs, supplier payments and fluctuating demand.
Top 10 UK industries by borrowing growth
| Rank | Industry | 2016 borrowing | 2026 borrowing | 10-year change |
|---|---|---|---|---|
| 1 | Electricity, Gas & Water Supply | £15.44bn | ~£44.00bn | +184.9% |
| 2 | Transport, Storage & Communication | £29.30bn | ~£47.72bn | +62.9% |
| 3 | Property Ownership & Leasing | £130.38bn | ~£203.06bn | +55.8% |
| 4 | Estate Agency & Property Services | £7.08bn | ~£10.62bn | +49.9% |
| 5 | Manufacturing | £35.96bn | ~£45.82bn | +27.4% |
| 6 | Accommodation & Food Services | £23.51bn | ~£29.35bn | +24.8% |
| 7 | Agriculture, Hunting, Forestry & Fishing | £18.42bn | ~£20.17bn | +9.5% |
| 8 | Recreation, Personal & Community Services | £8.66bn | ~£9.22bn | +6.4% |
| 9 | Mining & Quarrying | £7.10bn | ~£7.51bn | +5.8% |
| 10 | Human Health & Social Work | £20.56bn | ~£21.33bn | +3.7% |
Infrastructure investment is shaping borrowing patterns
The strongest borrowing growth appears concentrated in sectors that require substantial infrastructure investment.
Utilities, transport, telecoms and property all depend heavily on long-lived assets, making bank finance a central part of how expansion is funded.
British Business Funding argues that public policy could reinforce that trend.
Net zero targets, energy infrastructure upgrades and wider broadband expansion all require substantial investment, much of which is likely to involve debt financing.
The cost of borrowing will therefore remain an important factor.
If interest rates fall, capital-intensive industries may find it easier to expand investment. If financing costs stay high, projects could become more difficult to justify or may take longer to complete.
Debt growth does not necessarily mean financial distress
The findings also show why headline borrowing numbers need context.
An increase in business debt can reflect financial pressure, but it can also signal investment and expansion.
The relatively low use of overdrafts in utilities and property ownership, for example, suggests much of the increase is connected to longer-term financing rather than emergency cash-flow support.
By contrast, sectors with larger overdraft shares may be using more short-term financing to manage operational costs.
For businesses, the distinction matters because long-term loans and overdrafts serve very different purposes and carry different financial risks.
About British Business Funding
British Business Funding provides information and research around UK business finance and commercial funding.
Its analysis covers business borrowing, lending trends and access to finance across different sectors of the UK economy.
