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Business confidence rose slightly at the end of 2025. Lloyds Banking Group’s survey indicated a modest increase in business confidence after the Autumn Budget, despite earlier concerns over potential tax hikes. Optimism reached a four-month high.
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Automation is racing ahead of security controls. As AI agents join corporate networks, experts warn that 2026 will test enterprise resilience. ExtraHop’s Jamie Moles says governance, visibility, and culture will define whether businesses stay ahead or get blindsided.
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AI has become accessible to small businesses almost overnight. Yet as Kelly Salter, Commercial Director at names.co.uk (part of team.blue), explains, many still struggle with skills gaps, confidence, and trust. Bridging this divide requires practical guidance and mindset change — helping small businesses see AI as a partner, not a threat.
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HMRC is intensifying its scrutiny of fast growing UK companies. Francesca Titus, barrister and white-collar crime partner at McGuireWoods, warns that expanding enforcement powers, AI-led investigations, and new criminal offences are raising the stakes. For scale-ups, proactive compliance is now essential — before HMRC comes knocking.
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Leonardo warns of potential UK helicopter factory closure. The Italian defence group may shut its Yeovil site if it fails to secure a £1 billion Ministry of Defence contract, jeopardising the future of Britain’s last remaining helicopter manufacturing facility.
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UK GDP rose by just 0.1% in the third quarter. Growth was marginal and unchanged from earlier estimates, underscoring a slowing economy as the year closes. Services and construction made small gains, but production fell and household spending remained weak across most regions.
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Artificial intelligence has moved from potential to practice in recruitment. Two-thirds of UK recruitment companies are now using or testing AI tools, according to APSCo UK, with automation saving up to 17 hours a week and redefining how recruiters deliver value.
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Royal Assent has been granted to the Employment Rights Act 2025. The new law introduces phased reforms to dismissal, union access, and family-friendly rights, with several provisions effective immediately. The CIPD has urged employers to begin preparing now for implementation over the next two years.
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Only one in ten UK employees prioritise the office party. New research from Moonpig for Business finds that most employees would prefer time off or thoughtful gifts over festive celebrations, with one in five admitting that workplace gift swaps often lead to awkward or inappropriate moments.
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Consumer confidence rose to −17 in December, matching August’s peak. The latest GfK data shows small but broad-based gains in household sentiment, with every measure improving as inflation continues to ease. But the overall reading remains negative, reflecting a cautious outlook into early 2026.