There are reasons to be cheerful about UK plc in 2026. Here are four
Be it better prospects for consumer spending or the tentative signs of rising productivity, the doom and gloom of 2025 could be behind us
TL;DR
- 2026 may avoid the fiscal drama of 2025 due to increased fiscal headroom and a less stringent assessment of fiscal rules.
- Recent business surveys, like the S&P Global PMI, show a potential uptick in economic activity, with stronger new business demand in the service economy.
- Consumers might respond positively to Bank of England rate cuts, energy bill relief, and an end to tax speculation, supported by a higher household savings rate.
- Productivity data has shown improvement, with output per worker rising, potentially signaling early benefits from AI investment and a shift towards productivity-enhancing innovation.