
February’s UK dealmakers chased scale, stability, and strategic scarcity again. Engie’s £10.5bn agreement for UK Power Networks led the month, while Nuveen’s £9.9bn purchase of Schroders underscored pressure for asset-management scale. NatWest bought Evelyn Partners, nexfibre consolidated fibre via Substantial, and Brookfield-backed Radiant merged with London’s Ori in late February.

Zoho data shows UK businesses still squeezed after Spring Statement. A survey finds inflation and rising costs remain top external pressures, with half reporting higher cost per employee. Leaders are turning to cost reduction, standardisation, and selective tech investment, while Xero figures point to slowing sales growth among small businesses.

Unemployment is rising, and hiring costs are climbing again fast. The OBR expects joblessness to peak at 5.3% in 2026, as youth unemployment and NEET figures worsen. With minimum wage rates rising in April and new employment law changes ahead, business groups want clearer pathways and practical support.

Reeves promised stability, but business wants delivery and detail now. The Spring Statement kept major policy changes for the Budget, as the OBR cut 2026 growth to 1.1% and forecast unemployment at 5.3%. Leaders welcomed the tone, yet asked for clearer help on hiring, skills, and AI adoption quickly, nationwide.

UK SMEs are leaning on AI, and disputes are rising. A dispute resolution lawyer says ‘almost right’ outputs and jurisdictional blind spots can harden positions and inflate costs.

UK unemployment rises as AI reshapes hiring decisions. New data suggests scale-up founders are slowing recruitment as automation accelerates and employment costs climb, raising questions about how artificial intelligence is influencing the broader labour market.

Mid-career stagnation is reshaping Millennial workforce expectations. Rising stress data and weaker income progression suggest a structural shift, not generational fragility, as mid-level leaders confront slower advancement and economic uncertainty.

Europe is drawing a hard line around teen social accounts. After Prague signalled support for an under-15 ban, Slovenia began drafting legislation, Greece said it was “very close” to acting, and Spain set out an under-16 prohibition. Marketers now face a structural shift in reach, data, and measurement this year.

January’s US M&A opened 2026 with cash, speed, and scale. From streaming to medtech and power, buyers chased certainty and category leverage. Five headline deals, led by Netflix’s $82.7bn Warner Bros. push, signalled a market willing to pay up for assets that shorten timelines, widen moats, or lock in demand.

January’s UK M&A signalled confidence, but buyers stayed disciplined overall. A £7.7bn approach for Beazley set the tone, while EQT’s Coller deal and Accenture’s Faculty acquisition underscored private markets’ pull. Healthcare remained strategic, and take-private logic persisted. For leaders, readiness, clarity, and integration discipline mattered more than bravado this month.