Industries Becoming Most Reliant on Bank Loans in the UK

Industries Becoming Most Reliant on Bank Loans in the UK

The electricity, gas, and water supply sector is borrowing at the highest rates in Britain right now, according to a September 2026 report on UK business lending. This newly released study by British Business Funding reveals the top 10 industries where commercial loans have grown the most. 

• UK utility companies supplying electricity, gas, and water have nearly tripled their bank loans in a decade.
• With loans up 63%, transport and communication firms now owe banks £18.4 billion more than they did 10 years ago.
• Property landlords and leasing firms are the UK’s biggest borrowers, with £203 billion in outstanding loans.

The research examined 15 UK industries to find which ones have leaned on bank loans the most over the past decade. The report measured how much each industry owed in 2016 and how much it owes now in 2026, tracking loans, overdrafts, and non-overdraft credit separately. With this, the study calculated the pound increase and the percentage change in borrowing over that ten-year stretch. Industries were finally ranked from the biggest borrowers to the smallest, showing which sectors have grown the most dependent on debt.

Here’s a look at the top 10 UK industries where business loans have grown the most:

You can access the complete research findings here.

1. Electricity, Gas & Water Supply

• 10-year loan growth: 185%, the fastest of any UK industry
• Total borrowed in 2026: nearly £44 billion, up from £15.4 billion in 2016
• Overdraft share: just 3.6% of total debt in 2026

Electricity, gas, and water supply companies have been borrowing at the highest rates in the past decade. Loans in the sector climbed from £15.4 billion in 2016 to almost £44 billion in 2026. That’s a 185% jump that leaves every other UK industry far behind. Only 3.6% of that debt sits in overdrafts, which indicates that the growth in financing comes from big, long-term loans rather than short-term borrowing to cover cash shortages.

2. Transport, Storage & Communication

Transport, storage, and communication firms come second, with new borrowing leaning more on overdrafts. Loans in the sector grew by £18.4 billion since 2016, a 63% rise that pushed total borrowing to £47.7 billion this year. Overdrafts make up almost 11% of that debt, three times the share seen in electricity, gas, and water, so a bigger piece of this growth is short-term credit rather than the planned loans utility firms rely on.

3. Property Ownership & Leasing

Property ownership and leasing companies have also become more dependent on banks. They are the biggest commercial borrowers in the UK right now, owing over £203 billion. That’s up £72.7 billion from 2016, the largest pound increase and a 56% rise in overall borrowing. Other than that, less than 2% of this debt sits in overdrafts, the smallest share in the top five, so nearly all of that growth is tied up in long-term loans.

4. Estate Agency & Property Services

Estate agency and property services businesses come next on the list. Their loans have grown from £7.1 billion in 2016 to £10.6 billion in 2026. That’s a 50% rise, which is a sharp increase for a sector this size, though it still leaves the industry with one of the smaller loan books in the top five. Overdrafts make up 5.4% of this debt, a bigger share than most other industries carry.

5. Manufacturing

Manufacturing rounds out the top five industries that have become more reliant on external financing. Loans in the sector grew 27% since 2016, from £36 billion to nearly £45.8 billion. Around £9.9 billion of that total is in overdrafts, almost 22%, which is one of the highest shares of any big industry. That means manufacturers tend to take out more short-term credit alongside their longer-term loans to fix their cash flow.

A financial expert from British Business Funding shares more insights: 

“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. Government targets for net zero power and full fibre broadband both call for enormous amounts of new infrastructure, and most of that gets built with borrowed money rather than cash reserves. Interest rates will shape how all this develops too. If borrowing costs fall further, more industries are likely to take on new debt to fund growth.”