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The Guardian - UK

Business

Heather Stewart

There are reasons to be cheerful about UK plc in 2026. Here are four

SP United Kingdom Rachel Reeves Andrew Wishart

There are hopes for a rise in consumer spending in 2026, spurred by the latest interest rate cut, the energy bill cuts package and an end to ‘months of tedious tax speculation’. Photograph: Matt Cardy/Getty Images

Stalling growth, sticky inflation and fragile bond markets, the UK’s economic record in 2025 has hardly been one to inspire cheer. But in the spirit of the festive season, here are a few reasons to hope for a happier new year.

The first is that, barring external forces, 2026 should not involve a repeat of this year’s fiscal drama.

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