SearchStability tops the 2026 business wishlist
As we bring down the curtain on 2025 and look ahead to 2026, the north west business leaders with whom I speak are broadly united in their desire for the new year to bring stability.
This matters more than ever after recent global shocks, domestic policy shifts and, in particular, uncertainty with regard to tax. I think businesses above all crave a predictable economic environment that allows them to invest and innovate with confidence.
At the top of the list is stability in tax policy.
In my experience, businesses are not generally calling for lower taxes, rather they are asking for clarity and predictability. The debacle that surrounded the recent budget, where tax-raising policies were mooted only to be dropped and replaced with others, only caused anxiety for businesses. This was particularly the case for employers who, having been hit hard by the changes to national insurance contributions and national minimum and living wage levels earlier in 2025, feared another hit in November.
Frequent and unexpected changes to the tax rules make long-term planning difficult, and to me that appears particularly so for larger employers.
Sectors impacted by this include retail, hospitality, and healthcare, all of which are very exposed to increases in wage pressure. Into 2026, the companies I work with want certainty regarding their wage bill, and more generally for the tax landscape to settle down now that the ructions of 2025 are behind us.
In short, predictability in employment costs will help firms manage workforce planning while supporting fairer outcomes for employees.
Another priority is certainty around incentives for investment and skills.
Businesses want reassurance that reliefs such as research and development tax credits will remain available for genuine ground-breaking work.
HMRC has recently stamped down hard on what they see as rogue advisers and weak claims, but the net has been cast wide and has caught many genuine research-intensive businesses.
Anecdotally, I am hearing that directors are becoming reticent about putting such claims together because of the fear of HMRC audit.
This is not a healthy environment in which to do business, and it runs counter to the stated intention of the policy to encourage genuine high-quality research.
In addition to a stable tax landscape, businesses want to see wider economic stability at the core of government policy as we move into the new year. Inflation remains a concern, especially wage pressures given the issues I just mentioned. This must be kept under control if businesses are to continue to deliver the growth in job creation that the economy needs. Any changes that are required should be carefully phased in and clearly communicated by the government, rather than the haphazard nature of recent announcements.
Ultimately, what local businesses want heading into 2026 is confidence in the rules of the game. Stability in economic and tax policy will provide a foundation for investment and job creation, and that should benefit us all.