Half of UK adults (50 per cent) are more worried about falling victim to a scam than they were 12 months ago, according to the latest Barclays Scams Bulletin. As analysis of Barclays’ proprietary data reveals how fraudsters are changing tactics to target victims, Fraud & Scams Expert Kirsty Adams shares her top tips on staying scam safe in 2026. Key Findings: Half of UK adults (45 per cent) have been targeted by a scam this year, rising to two thirds of Gen Z (64 per cent) Barclays scams data shows investment scams accounted for 47p in every £1 claimed by victims in 2025 – up from 39p in 2024 and 32p in 2023 While social media remains the biggest source of scams, average monthly volumes of scams originating via text/SMS have increased 40 per cent from 2024 Investment Scams On The Rise Barclays’ claims data shows that investment scams accounted for almost half (47 per cent) of the total value of total claims in 2025, up from 39 per cent in 2024 and 32 per cent in 2023. Despite investment scams’ significant share of the overall value of claims, they represent just 7.1 per cent of the volume of reports in 2025 – however, this is up from 5.6 per cent in 2024. Purchase scams maintained the largest share of claims, at 71 per cent, unchanged from last year. One in three (35 per cent) reported investment scams originated on social media. Fraudsters Are Turning To Text, But Social Media Remains Top Scam Source Looking more broadly at all scam types, social media remains the biggest source of reports by Gen Z customers in 2025, accounting for six in 10 (58 per cent) cases, compared with 45 per cent across all generations. Amid significant advances and widespread adoption of artificial intelligence this year, three in four (75 per cent) believe AI has made online scams more convincing. This has led to one in three Gen Z consumers (34 per cent) now actively avoiding online shopping due to scam concerns – the highest rate of any generation, and 12 percentage points higher than older age groups (22 per cent). Barclays data shows that these scammers have responded to this declining online confidence by pivoting towards more direct and trusted channels. Average monthly reports of scams originating via text/SMS have increased 40 per cent from 2024, now accounting for 14 per cent of claims. One In Four Are Skipping Finfluencer Background Checks To Avoid FOMO Barclays research also found that 42 per cent of those who acted on social media investment content lost money – and not always by being scammed. While scams involve deliberate fraud, many investors also face losses after following unregulated advice from ‘finfluencers’. One in four (24 per cent) say they feel pressured to act quickly on unsolicited tips, often mistaking displays of wealth for credibility. This rises to 48 per cent among Gen Z (18–27). Consumers Show Growing Support For Data Sharing To Fight Scams Eight in 10 (81 per cent) consumers believe more work should be done to protect them from scams, and 79 per cent think tech companies should do more to prevent scams occurring on their platforms, up from 75 per cent in spring of this year. Almost half (45 per cent) would welcome tech companies and banks sharing personal data with each other, if it was done to prevent them falling victim to a scam. Barclays Fraud and Scams Expert Kirsty Adams, says: “Once again, scammers adopted new tactics in 2025, and as a result we saw a shift in the nature of scams reported by our customers. While fraudsters targeted victims with higher-stakes opportunities, we witnessed the resurgence of scams coming via text message, as confidence in online channels has declined." “There’s no doubt that scammers will attempt to take advantage of shoppers during the festive sales, so we’re urging people to remain vigilant. Looking ahead to 2026, we’re hopeful we will see continued progress in the fight against fraud, in the form of cross-industry collaboration.” Kirsty’s top tips on staying ahead of the scammers in 2026: Never disclose personal details : Your bank will never ask you for your debit card PIN, your password, or your complete online banking login details. Requests along these lines should jump out as a red flag. Verify company details : If you are in doubt about a company that has contacted you by phone, it is always worth double checking their contact details. Check official websites and call the listed number directly yourself. Take your time : When it comes to making purchases online or committing to an investment, don’t be forced into making any hasty decisions. Always remember that legitimate organisations shouldn’t push you into anything. Be sceptical of promises : Our data shows the average investment scam claim is higher than any other scam type. Remember the old adage; if it sounds too good to be true, it probably is, and remain sceptical of any promise of unrealistic returns. Beware of scam texts : If you’re sent a one-time passcode to authorise a payment or registration, always read the full message to check it matches up with what you’re doing. If it doesn’t, stop the transaction and don’t use the code or give it to anyone.

Family Business United is delighted to announce the family firms that are in the running for the National Family Business of the Year Awards 2026. Organised since 2012 these are the only national awards dedicated to celebrating the significant contribution that family firms make to the national economy in terms of the jobs they provide, income they generate and the wealth they create, as well as recognising their philanthropic endeavours in the communities in which they operate. Paul Andrews, Founder and CEO of Family Business United adds; "These prestigious awards are an annual highlight as the recognise family firms that make a real difference, celebrating their achievements and bringing the family business community together to realise the collective impact they have." "Family businesses are important and these awards enable us to take stock of their achievements and crown some incredible family business winners." "Winners over the years have come from all corners of the UK, large and small, multigenerational and some early on their journey but collectively they all share the same underlying values and make a difference each and every day. They all have incredible stories to share and we look forward to finding out more about those shortlisted this year and ultimately crowing the winners in due course." Taking place in London on June 17 awards will be presented to regional winners and then national awards will be given for business sectors such as manufacturing, retail and homes & gardens, and categories such as societal impact, entrepreneurship, small family business, innovation and sustainability before the crowing of the overall Supreme Champion Family Business of the Year for 2026. The family businesses in the running for the 2026 awards by region are: EAST & EAST ANGLIA - Sponsored by Birketts ABL Circuits Ltd Breckland Orchard Ltd Hamblion Transport M. Gaze & Co Ltd Matthew Douglas Limited Netto Care Morgans Butchery Ltd Neville Trust Objective IT Princebuild Rose Builders Ltd Rose Calendars Stockvale Limited Stort Group Wildwood Pets Ltd LONDON & SOUTH EAST - Sponsored by Forsters Active Digital Capital Roofing Co Ltd Chartway Janitorial Construct Virtual Croxsons Dobsons Ernest Doe & Sons Ltd Eximia F. Hinds Ltd Furniture Village Gibsons Games Homesitters J&G Traffic Management Lawsons (Whetstone) Ltd Nourish Contract Catering Ltd Olive Dining Pennyhills (London) LLP Powerday PLC RED Physiotherapy Sesame Access Limited Shepherd Neame Shorts Group Ltd The Orchard Practice Ltd Visiting Angels South Middlesex Wise Up Teambuilding MIDLANDS & CENTRAL - Sponsored by Buckles Bowers Electrical Bunches Florapost Ltd Champions Speakers Colton Packaging Cooper Group UK Daltons Empathika Falcon Contract Flooring Holdsworth Foods Inclusive Care & Education Langdale Care Homes Little Brewing Company Ltd MHR Global P2BS Ltd RB Windows RSP UK The Wilkins Group NORTH OF ENGLAND - Sponsored by TWYD & Co Acresfield Health Club & Spa AllpaQ ARB Property Trading Ltd Deal Direct Blinds Hayley Rose Wellbeing HMG Paints Linda Lewis Kitchens Mercury Lifts Ltd Olea Care Group The Quiet Site SCOTLAND - Sponsored by Turcan Connell Andron Facilities Management BlueSky Experiences CW Johnson Plant Ltd Farm Stop Gordon & Macphail Hattie's Autobody John White & Son (Weighing Machines) Ltd Johnstons of Elgin Mac Mic Group Redpath Bruce Spectrum Service Solutions Limited The Malcolm Group The Victor Pizza Company Vittoria Group SOUTH OF ENGLAND - Sponsored by Downs Solicitors HCE Foodservice Just Live-In Care New Forest Ice Cream Rawlingson Lane Seldram Supplies SOUTH WEST & WALES - Sponsored by James Cowper Kreston EG Carter & Co Ltd FC Douch Funeral Directors Hussey Seatway Laceeze Defiance Mathias & Sons Ltd Tamar Fresh Tamarisk The Mount Studio Architects The Old Monmouth Hotel YORKSHIRE - Sponsored by Western Pension Solutions Britcab LTD BSP Hydraulics Ltd Care Connection Partners Hill Cross Furniture Howarths Howcrofts Funeral Services John Good Group Power Plastics Limited The Pet Vet TL Dallas Group Finalists for the sector awards and the national categories will be announced in due course. Thanks to our other award sponsors: Entrepreneurship - Rickard Luckin Essence of Family Business - Goodman Jones Supreme Champion Family Business of the Year - Brooks Macdonald For further information about the awards and sponsorship opportunities please do not hesitate to contact us . Further details of the gala evening and to book tickets to join the gala evening to see the winners crowned can be found here

Consumer card spending declined -0.2 per cent year-on-year in 2025, after growing 1.6 per cent in 2024 and 4.1 per cent in 2023. In a year marked by careful and considered budgeting, confidence in household finances consistently exceeded confidence in the economy. Some non-essential categories, such as beauty, travel and entertainment, bucked the general trends, as shoppers once again prioritised affordable treats and experiences that bring them joy. New data from Barclays reveals that essential spending declined -2.3 per cent in 2025, down from 0.9 per cent growth in 2024. Non-essential spending increased marginally, up 0.8 per cent, however this lagged behind the latest CPIH inflation rate of 3.8 per cent. The Barclays Consumer Spend report, which combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending, reveals the top 10 trends that shaped consumer behaviour this year. 1. Consumers Prioritise Non-Essentials Despite Economic Uncertainty Confidence in the UK economy remained low in 2025, with a monthly average of one in four adults (24 per cent) feeling confident in the nation’s economic strength. In October, all seven measures of consumer and economic confidence tracked by Barclays declined for the first time since August 2022, when the Bank of England announced its biggest base rate increase in 27 years. However, supported by prudent budgeting, at year-end, the majority remain confident in their household finances (64 per cent) and their ability to spend on non-essentials (52 per cent), although both measures have declined since January (from 70 per cent and 56 per cent respectively). Linked to this confidence in discretionary spending, consumers found room in their budgets for experiences and “feel-good” purchases in 2025. Growth in non-essential spending consistently outpaced essential spending throughout the year, even when consumer and economic confidence were subdued. Almost half (44 per cent) of consumers say they like to treat themselves regularly, but find ways to do it on a budget, which led to categories such as pharmacy, health and beauty (9.5 per cent) and food and drink specialists (2.7 per cent) receiving a boost. 2. Beauty And Wellness Now Non-Negotiables 2025’s strongest performing category, pharmacy, health and beauty, saw double-digit growth in several months of 2025, marking close to five years (56 months) of consistent growth. Those spending on the pharmacy, health and beauty category splashed out £324 each on average, up from £291 in 2024, as the “lipstick effect” – when consumers buy small, affordable luxuries as a pick-me-up – persisted, while 71 per cent of consumers say they’ve invested in wellness in the last 12 months. Earlier in 2025, Barclays chronicled the rise of male beauty spending, revealing that almost one in five (19 per cent) men now care more about beauty than they did 10 years ago, contributing to the category’s success. Further, a quarter of men (25 per cent) have now incorporated skincare into their daily routine, and one in eight (12 per cent) have spent money on a cosmetic procedure. 3. AI And Technology Aid Money Management Over a third (35 per cent) of consumers, and 70 per cent of Gen Z, have used AI tools in the last year for budgeting, planning, and shopping. Of the 65 per cent who are yet to make use of AI, half (50 per cent) prefer to manage things without the help of tech, 42 per cent don’t trust AI and 30 per cent have privacy and data concerns. The growth of AI is also transforming how people approach sales; 37 per cent of shoppers said they would use AI and other smart tools during their Christmas shopping, rising to 53 per cent for those aged 18-34. This group is turning to AI to research products (43 per cent), compare prices and deals (34 per cent), generate gift ideas (31 per cent) and set up personalised alerts (25 per cent). 4. The ‘Experience Economy’ And Oasismania 2025 saw a marked shift towards spending on experiences over material goods, as consumers opted to make more meaningful memories. The entertainment category enjoyed growth of 4.3 per cent over the course of the year, as major events, such as Coldplay’s World Tour and Sabrina Carpenter’s Short n' Sweet tour, drove significant spikes in spending. The greatest increase was seen in April, at 13.2 per cent, when A Minecraft Movie was released. Consumers spent £316 on average on memorable moments, while 16 per cent said that they spent more in 2025 on entertainment compared to last year. Also contributing to this surge was the Oasis reunion tour. Barclays’ Wonderwallets research in April found that Oasis fans anticipated they would spend a combined total of £1.06bn attending the highly awaited reunion, with attendees planning to splash out an average of £766.22 each to see the Gallagher brothers perform at one of the 17 UK concert dates. 5. Streamflation And The Digital Content Boom Streaming’s golden age continued in earnest, with spending on digital content and subscriptions up 4.3 per cent, following the success of shows such as White Lotus, Severance and Adolescence in 2025. One of the year’s biggest streaming hits was animated film KPop Demon Hunters, which contributed to the category's 5.6 per cent boost in June as fans broke viewing and soundtrack records, with hits like "Golden" topping the charts. Nine in 10 (90 per cent) UK adults say they’re now signed up to at least one streaming service to get their entertainment fix, however, 52 per cent of customers reported they had noticed ‘streamflation’ taking effect (the rising cost of streaming services), while the average spend on digital content and subscriptions in the year totalled £378. 6. Savvy, Value-Conscious Shopping Cost-of-living pressures led to widespread adoption of budgeting strategies, with nearly two thirds of consumers (64 per cent) consistently looking for ways to get more value from, or reduce the cost of, their weekly shop. Those cutting food costs are making use of loyalty schemes (56 per cent), discount supermarkets (49 per cent), own-brand alternatives (45 per cent), and the revival of the “big shop” (31 per cent). Meanwhile half (50 per cent) are making the effort to cut back on discretionary spending. Consumers’ price sensitivity meant significant numbers noticed tactics such as “skimpflation” (57 per cent), where the quality of certain products or ingredients declines, without a corresponding drop in price, and “drinkflation” (37 per cent), where alcoholic drinks become smaller or contain less alcohol, yet cost the same or more than they used to, up from 22 per cent in 2023. Three quarters (76 per cent) reported concerns about shrinkflation, and a similar proportion (74 per cent) noticed food products becoming more expensive. 7. Travel Spending Slows Travel spending remained resilient in 2025, up 2.7 per cent, however this represented a decline from 2024’s growth of 6.9 per cent. Travellers spent £1,158 on average each on the category. In a drive to keep costs down, many opted to travel at off-peak times or during the shoulder season (54 per cent) and used AI tools for planning and budgeting their holidays (27 per cent). Among this group, the top uses are creating itineraries (35 per cent), researching and choosing destinations (32 per cent) and translation (30 per cent), while over a quarter (27 per cent) are finding and comparing prices, discounts and deals with these tools. 8. Furniture And Home As Comfort Investments Furniture stores grew 4.3 per cent overall, having declined -2.2 per cent in 2024, as consumers invested in their living spaces, five years on from the pandemic. Spending at furniture stores grew in each month of 2025, the most sustained growth for the category since 2020. This trend was partly driven by new homeowners and their desire for “pick-me-up” purchases that enhance comfort at home. Furniture enjoyed a particularly strong month in June, up 8.2 per cent, after a record number of mortgage completions took place in March 2025, ahead of April’s stamp duty changes. Similarly, garden centres, which fell -2.4 per cent in 2024, saw strong growth of 4.6 per cent year-on-year as buyers looked for ways to spruce up their outdoor areas. 9. Support For British-Made And Local Products Amid widespread uncertainty post-Liberation Day, when the US announced sweeping tariffs on the import and trade of international goods, two thirds of UK consumers (67 per cent) cited concerns about the prices of imports. Meanwhile 71 per cent said they would buy more items that were “Made in Britain”, and one in eight said they would be willing to pay a premium for local products (12 per cent). Seven in 10 (68 per cent) said they wanted to support UK businesses by buying more home-grown products, with this trend supporting growth in food and drink specialist stores and local retailers, up 2.7 per cent overall in 2025. 10. Fitness-Driven Socialising And Low/No Alcohol Choices 2025 saw the rise of “low-and-no” alcohol options and fitness-based gatherings, as nearly a third of consumers (31 per cent) said they have changed how they socialise in the last 12 months. Two in five (41 per cent) of those aged 18-34 say they now like to combine social catchups with exercise such as meeting for a gym class, cycle or run, while 48 per cent opt to socialise in ways that support health and wellbeing). This wellness trend is leading many to cut back on big nights out; two fifths (44 per cent) reported going on fewer nights out in 2025, with spending at bars, pubs and clubs down -0.2 per cent year-on-year, after experiencing 3.6 per cent growth in 2024. Karen Johnson, Head of Retail at Barclays, said: “While confidence in the UK economy has declined, UK households’ confidence in their ability to manage their money has remained strong, translating into the resilient performance of categories such as travel, entertainment and beauty." "It is encouraging to see that through purposeful spending, consumers continue to prioritise the things that bring them joy, unlocking the potential for UK economic growth.”

As we move into 2026 and beyond, family businesses find themselves standing at a decisive moment in their long histories. The turbulence of the early 2020s has fundamentally altered the global business environment, pushing digital transformation into overdrive, intensifying geopolitical uncertainty and raising expectations around sustainability and social responsibility. Family firms have traditionally been seen as islands of stability within volatile markets, but the year ahead will demand an even greater level of focus, resilience and strategic foresight. The characteristics that have sustained them for generations, stewardship, long-term thinking and deeply rooted values, remain potent strengths, yet the pressures they now face are far more complex and far less forgiving. Understanding these new realities is essential for shaping a coherent agenda for 2026. Economic Uncertainty and Margin Pressure Economic uncertainty remains one of the most pressing concerns for family firms. Volatile interest rates, fluctuating energy prices, persistent inflation and unpredictable consumer behaviour continue to squeeze margins across virtually every sector. Manufacturing, retail and hospitality businesses are particularly vulnerable, caught between rising operational costs and customers unwilling or unable to absorb higher prices. Access to affordable finance has tightened, placing renewed emphasis on cash flow management and prudent budgeting. Meanwhile, consolidation across many industries means that competitive pressures are escalating. For family firms committed to high-quality products, fair employment practices and values-driven operations, protecting profitability without compromising their principles is becoming a delicate balancing act. Succession Pressures Intensify Succession, long a complex and emotional issue in family enterprises, is emerging as a more urgent challenge. Many founders who postponed retirement during the pandemic years are now stepping back, often without a clear or prepared successor. Younger family members increasingly approach leadership with different expectations, prioritising work–life balance, purpose-driven decision-making and professional governance. Families are therefore facing difficult questions about who should lead, how transitions should be managed and whether external management might provide the expertise required for future growth. The risk of leadership vacuums or rushed appointments is higher than ever, making succession planning an essential, strategic responsibility rather than a private family matter. Governance in a Complex World Governance, too, has become considerably more complex. As family firms expand, diversify or operate across multiple jurisdictions, informal decision-making structures have become insufficient. Stakeholders, including regulators, banks, investors and employees, now expect transparency, accountability and robust oversight on a level comparable to publicly listed companies. Many family businesses are therefore recognising the need to establish or strengthen advisory boards, bring in independent directors and update shareholder agreements to reflect modern family dynamics. Risk management frameworks must evolve as well, particularly in response to cyber threats and regulatory obligations. Professionalising governance no longer means surrendering entrepreneurial spirit; rather, it is becoming essential to preserving it. Digital Transformation: From Optional to Existential Digital transformation, once viewed as optional or disruptive to traditional ways of working, is now existential. The pace of technological advancement, driven by AI, automation, advanced analytics and rising customer expectations, is reshaping business models at astonishing speed. Yet many family firms continue to rely on legacy systems or instinct-driven decision-making. Modern businesses require updated systems, robust cybersecurity and a workforce confident with digital tools. The challenge is to integrate new technologies without erasing the personal touch, heritage or craft that make many family firms unique. Those who view digital transformation as an enabler rather than a threat are better positioned to thrive in the future. Attracting and Retaining Talent Talent remains another significant pressure point. Employees, particularly younger professionals, are demanding more meaningful work, clearer development opportunities and greater flexibility. Family businesses have long benefited from loyal workforces and a strong sense of belonging, but they now face competition from remote-first employers and global companies recruiting without geographic restrictions. Hybrid working has become an entrenched expectation, while younger generations are unwilling to accept slow, opaque career progressions. To remain employers of choice, family firms must invest in training, articulate compelling career paths and make their purpose clear, visible and relevant to employees across all levels. Rising Sustainability Expectations Sustainability expectations are rising just as quickly as regulatory obligations. Governments across Europe, the UK and Asia are tightening requirements around carbon reporting, supply-chain transparency and environmental responsibility. Consumers, too, are increasingly intolerant of greenwashing and quick to favour businesses with authentic, measurable commitments to sustainability. For family firms, whose meaning and legacy often span generations, this shift represents both a challenge and an opportunity. Embedding sustainability into strategy is no longer a moral aspiration; it is a business imperative that affects competitiveness, reputation and access to future markets. Geopolitical Volatility and Operational Risk Geopolitical volatility is adding another layer of complexity. Trade tensions, shifting global alliances, regional conflicts and politically motivated market barriers are reshaping supply chains in real time. Family firms that once relied on stable import–export routes or single-source suppliers are being forced to rethink their entire operational models. Many are exploring near-shoring, building multi-supplier arrangements or investing in more sophisticated logistics forecasting to mitigate sudden disruptions. Resilience is no longer about weathering storms—it is about redesigning business systems to remain functional amid constant change. The 2026 Strategic Agenda Given these challenges, the strategic agenda for family businesses in 2026 must be both focused and ambitious. Financial discipline needs to be strengthened, with firms rebuilding cash reserves, reassessing debt exposure and evaluating all investment decisions through both short-term and long-term lenses. Succession should be approached as a strategic, multi-year programme involving leadership development, external experience for future leaders, and clarity around the distinction between ownership and management. Governance must continue to evolve, ensuring transparency, accountability and well-defined decision-making processes that reflect the complexities of modern markets. Digital capability should become a central pillar of strategy, not an afterthought. Firms need to modernise their core systems, embrace AI and automation where they add real value, and invest in digital thinking across their workforce. At the same time, the family firm’s reputation as an empathetic, human-centred employer should be cultivated deliberately. This means creating modern working conditions, offering credible development pathways and expressing purpose in a way that resonates with diverse and multigenerational teams. Sustainability must also move from aspiration to execution, with measurable targets, transparent reporting and a commitment to innovation rather than compliance alone. Finally, supply-chain resilience should become a long-term priority as firms redesign their networks to cope with geopolitical unpredictability. Owning the Family Advantage Ultimately, the opportunity for family businesses in 2026 lies in leveraging the advantages that have long defined them. Their long-term stewardship, strong values, patient capital and authentic leadership are rare qualities in today’s short-termist corporate landscape. If they embrace the required transformation with confidence rather than hesitation, family firms will not only meet the challenges ahead—they will set the standard for what stable, meaningful and responsible business leadership looks like in an uncertain world.

Vistage, the leading business performance and leadership organisation for small and medium-sized businesses across the UK and Ireland, has released new findings from its latest CEO Confidence survey, revealing a sharp contrast between how leaders see the wider economy and how they feel about their own businesses. Key findings: 54% of leaders say economic conditions in the UK and Ireland have worsened over the past year 39% expect the economy to get worse in the next 12 months, while just 12% expect improvement Half (50%) of business leaders expect profitability to improve, despite 29% citing rising costs as their biggest challenge More than seven in ten leaders (72%) say members of the leadership team are already using Generative AI The quarterly confidence index, which is based on responses from business leaders, has increased to 93.6, up from 88 in Q3 2025 and 91.4 in Q4 2024. While overall confidence has edged up, the Autumn Budget appears to have done little to lift sentiment about the wider economy, suggesting that leaders’ growing confidence lies more in their own ability to navigate conditions than in expectations of external support. Economic Outlook Remains Negative More than half of respondents (54%) say economic conditions in the UK and Ireland have worsened over the past year, while only 6% say they have improved. Looking ahead, 39% expect the economy to deteriorate over the next 12 months, compared with just 12% who anticipate an improvement, and 45% expect conditions to stay broadly the same. The findings suggest a cautious outlook, with leaders focusing less on a quick economic recovery and more on what they can control within their own businesses. Leaders Back Their Own Businesses To Grow In contrast, SME leaders are far more positive about their own organisations. Nearly two thirds (63%) expect their firm’s sales revenues to increase over the next year, while only 6% expect a decline. Half anticipate an improvement in profitability (50%), with around a third expecting profits to hold steady (32%) and a smaller group expecting them to worsen (18%). Investment plans reinforce this confidence, as almost 39% of leaders intend to increase fixed investment, and 38% plan to maintain current levels, while only 21% expect to cut back. SMEs appear to be using this period to strengthen their position and prepare for future growth, rather than waiting for conditions to improve. Rising Costs And Customer Demand Top The List Of Pressures When asked to name the biggest challenge facing their business, rising costs came first, cited by 29% of leaders, with customer demand close behind at 25%. Other challenges include regulatory change (9%), competition (8%), talent retention (7%), supply chain issues (5%), and access to finance (3%). The combination of cost pressure and demand uncertainty shows that many SMEs are being squeezed from both sides, facing higher input costs on one hand and questions about future revenue on the other. Investing For 2026 - Growth, Technology And Talent Looking to 2026, leaders are planning around growth rather than cutbacks. According to findings, most business leaders are focused on product or service development (41%), technology adoption (38%) and leadership changes (35%), alongside cost cutting (27%), strategic partnerships (28%), investment prioritisation (23%) and hiring (20%). In line with these plans, leaders’ top investment priority for 2026 is AI (45%), followed closely by market expansion (44%), technology and training and development (both 41%), people and recruitment and customer experience (both 38%) and product development (27%), with infrastructure (18%) and sustainability (6%) also on the agenda. This focus on technology, skills, people and customers suggests SMEs are positioning themselves to emerge stronger and more competitive, rather than retrenching and waiting for conditions to improve. AI Moves Into The Mainstream The survey shows that Generative AI is now firmly embedded in many organisations. More than seven in ten leaders (72%) say members of the leadership team are using Generative AI, 65% say the CEO is using it, and 65% report use by specific teams or functions. Almost half (46%) say employees are also using AI tools independently, while only a small minority (7%) say AI is not being used at all. Leaders expect this to have a real impact on how work is organised. Almost half (49%) anticipate that AI adoption will lead to roles being reallocated, and 14% expect it to create entirely new roles. By comparison, 15% expect AI to reduce headcount, 1% expect it to increase headcount, 21% foresee no impact, and 13% are unsure. Taken together, this indicates that most SMEs see AI less as a blunt cost cutting lever and more as a way to reshape work and increase capability across the business. Rebecca Drew, Managing Director, Vistage UK and Ireland, said: “Our latest survey findings show that CEOs are under no illusions about the economic backdrop. Many see conditions worsening and expect little improvement in the year ahead, yet they continue to back their own businesses by investing in revenue growth, profitability and future capability." "With rising costs and pressure on customer demand, the quality of leadership decisions matters more than ever. In moments like this, access to trusted peers to pressure test their plans, compare approaches and learn from others’ experience can make the difference between standing still and moving ahead with confidence.” As part of Vistage’s ongoing support for business leaders, the quarterly CEO Confidence Index offers a clear view of economic sentiment, enabling leaders to make smarter decisions in today’s complex environment. To learn more about how Vistage supports high-performing leaders through insight, mentorship and community, visit here .

It is with profound sadness that the Anderson Family and GAP Group share the news of the sudden passing of Douglas Anderson.   Joining GAP in 1978, Douglas was a true visionary in the world of hire, and he dedicated his life to growing the business. His leadership and passion have enabled GAP to be the success it is today.   GAP Group will continue to build on Douglas’ legacy with the continued support and dedication of our workforce.

The latest CBI Economic Forecast finds businesses swimming against the powerful tides of weak demand, elevated labour and energy costs, and ongoing domestic and global uncertainty. In spite of these challenges, the CBI has upgraded its 2026 GDP growth projection from 1.0% to 1.3%, with the upward revision driven largely by a temporary boost to government expenditure following the Autumn Budget. However, solid headline GDP growth masks persistent weakness in private sector demand, and longer-term prospects will remain constrained by weak productivity and future fiscal tightening. While the economy began 2025 on a firm note, momentum has softened significantly through the year – with CBI business surveys providing further evidence of consistent sluggishness in underlying activity. Looking ahead, the Economic Forecast highlights only modest growth in household spending, as real incomes growth slows, and weak business investment as key challenges for the longer-term outlook. The CBI’s latest UK Economic Forecast shows: UK GDP growth in 2025 is projected to be 1.4% - an upgrade from our June forecast of 1.2% that reflects historical data revisions. UK GDP growth in 2026 is projected to rise by 1.3% - an upgrade from our June forecast of 1.0%. Moderate GDP growth of 1.5% is expected through 2027. Household spending is expected to remain modest, as slower real income growth and lingering caution weigh on consumption. Business investment is expected to stay subdued through 2027, reflecting the impact of weak demand, high costs, and both domestic and international uncertainty dampening appetite to invest. Inflation is projected to ease steadily, helped by fading price pressures, reaching 2.6% in 2026 and 2.3% in 2027. Private sector employment growth is expected to remain muted, with higher labour costs and soft activity weighing on hiring. The unemployment rate is expected to hover around 5%, which is still low relative to historical standards. Two further Bank Rate cuts are expected (in December 2025 and early 2026), taking interest rates to 3.5%. Louise Hellem, Chief Economist, CBI, said:   “While it’s welcome to see our growth forecast upgraded for next year, the mood music reads more ‘cautious optimism’ than ‘cause for celebration.’ The momentum that we saw in early 2025 has clearly faded through the year, and our revised growth forecast has mostly been driven by a near-term boost in government spending and investment – rather than addressing the underlying challenges that are holding the rest of the economy back." “The forecast shows that the UK economy is continuing to face significant and persistent headwinds. Demand is fragile, domestic and global uncertainty is keeping a lid on business investment, and the cumulative burden of rising employment costs – from NLW and NICs hikes – is hitting firms’ profits and hiring plans. With businesses facing these combined pressures, we’re unlikely to achieve the jump in activity needed to lift the UK's long-term growth ceiling." “While the Budget did deliver much needed stability, too many bold choices were left unaddressed." " If the government is serious about restoring business confidence and turbo-charging its own growth mission, it must urgently address some of the biggest barriers to competitiveness – particularly crippling business energy costs, a costly and overcomplicated business tax regime, and uncertainty around future employment costs.” The Economic Forecast in detail shows: 1 - Underlying activity has been subdued, with uncertainty stifling critical business investment UK GDP growth has slowed considerably over 2025, chiming with the weak underlying pace of activity reported by CBI surveys. UK businesses continue to face significant headwinds, including weak demand, elevated costs, and ongoing economic uncertainty. Persistent instability forced many firms into a “wait and see” mode leading up to the Budget, directly contributing to the recent deterioration in investment and hiring plans across key sectors. 2 - Steady growth supported by near-term fiscal policy loosening Higher government spending following the 2025 Autumn Budget is expected to provide short-term support to growth. However, backloaded tax rises from 2028 will drag on growth beyond our forecast horizon. Taking into account persistently elevated public borrowing costs, the near-term public finances outlook remains vulnerable. 3 - Household spending growth expected to remain sluggish Household spending is expected to grow only modestly, as a marked slowdown in real incomes growth weighs on consumption. We assume that households run down some savings to support spending, although persistent precautionary behaviour means that the savings ratio stays elevated relative to recent historical norms. 4 - Business investment remains weak amid high costs and elevated uncertainty Business investment is expected to remain subdued, consistent with the deterioration in investment intentions in CBI surveys. Weak demand and high labour costs continue to squeeze profits, while elevated economic uncertainty also dampens firms’ appetite to invest. 5 - Inflation set to slow to 2.6% in 2026 and 2.3% in 2027 CPI inflation is projected to steadily ease over our forecast, slowing from 3.4% in 2025 to 2.6% in 2026, as the impact from previous price increases in energy & utilities bills fades. Inflation is then projected to fall further in 2027, to 2.3%, nonetheless remaining above the Bank of England’s 2% target. 6 - Higher labour costs will weigh on private sector employment Private sector employment growth is projected to remain muted, with higher labour costs – linked to recent increases in employer NICs and the NLW – and soft activity weighing on hiring. The unemployment rate is forecast to hover around 5%, which is still low by historical standards. Wage growth is expected to ease gradually, driven by falling inflation, but it is still set to continue increasing in real terms. 7 - Bank Rate expected to settle at 3.5% in early 2026 Our forecast expects that the Bank of England’s Monetary Policy Committee will reduce the Bank Rate by 25 basis points each in December and Q1 2026, resulting in a terminal rate of 3.5%. This is assumed to leave monetary policy in a slightly restrictive position, consistent with our expectation that inflation remains marginally above target through 2027. Our forecast implies that borrowing costs for both businesses and households will remain noticeably higher than pre-COVID norms. 8 - Weak productivity growth remains a critical drag on the economy Productivity (as measured by output per worker) is projected to remain subdued throughout the forecast period, which will limit the UK's long-term growth prospects and living standards. By late 2027 (Q4), productivity is expected to sit approximately 2% below its already weak pre-COVID trend, with the gap widening to about 24% below the pre-2008 financial crisis trajectory.

Manufacturing output volumes fell in the three months to December, though at a slower pace than in November – according to the CBI’s latest Industrial Trends Survey (ITS). Manufacturers expect volumes to decline at a similar pace in the three months to March. Total and export order books also improved relative to last month, though remain historically weak. Stock adequacy eased but manufacturers report that inventories of finished goods remain more than adequate. Expectations for selling price inflation picked up, with the survey balance rising above the long-run average. The survey, based on the responses of 350 manufacturers, found: Output volumes fell in the three months to December but at a slower pace than last month (weighted balance of -21%, from -30% in the quarter to November). Manufacturers expect output volumes to decline at a similar pace in the three months to March (-17%). Output decreased in 15 out of 17 sub-sectors in the three months to December, with the fall being driven by the chemicals, metal products, and mechanical engineering sub-sectors. Total order books were reported as below “normal” in December but improved from last month (-32%, from -37% in November). The level of order books remained significantly below the long-run average (-14%). Export order books were also reported as below “normal”, to a slightly lesser extent than in November (-27%, from -31% in November). The balance was also below the long-run average (-19%). Expectations for average selling price inflation strengthened notably in December (+19%, from +7% in November), standing above the long-run average (+8%). Stocks of finished goods were reported as more than “adequate” in December (+8%, from +16% in November), with the balance standing marginally below the long-run average (+12%). Ben Jones, CBI Lead Economist, said: “Manufacturing output is still falling, but the pace of decline has eased. Activity was clearly held back by uncertainty ahead of the Budget, and with that now out of the way firms can look to 2026 with a little more certainty." “Significant headwinds remain nonetheless, with demand still soft, high energy, labour and regulatory costs squeezing margins, and uncertainty around key policies and global conditions continuing to weigh on confidence." "To build momentum through 2026, the government must take action to lower the cost of doing business." "This includes expediting and broadening support to tackle punitive industrial energy costs, collaborating to agree balanced solutions on the Employment Rights Bill through secondary legislation, and overhauling regulatory barriers to unlock investment and innovation."

Business confidence increased to 47% in December, rising five points from last month and standing 10 points higher than the start of 2025, according to the latest Lloyds Business Barometer. In addition, optimism towards the wider economy reached a four-month high, up 11 points to 42%. The renewed economic optimism offset a slight dip in firms expectations in their own trading prospects, down by one point to 52%. Hiring Intentions Ease Firms hiring plans for the year ahead remained positive but eased slightly to 55%, down one point, while businesses expecting to increase headcount over the next year remained unchanged at 17%. Wage growth expectations remained steady with 18% of firms anticipating wage growth of 4% or more in the next 12 months in line with the 2025 average. Prices Pressures Soften Businesses' price expectations reduced in December, returning to levels seen at the start of the year. Overall a net balance of 59% of firms, down one point, expect to raise prices next year. Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking explains that "It is great to see business confidence ending the year on a higher note, up ten points from the start of the year. The uplift in business confidence is driven by an 11 point increase in optimism in the wider economy, increasing to a four month high." "Confidence changed most in the construction sector which saw a big boost in December, to the highest level this year. Sector Highlights Construction saw the sharpest improvement, up 22 points to 61%, its highest level seen this year. Manufacturing also was up five points to 49%, while retail firms edged higher to 47%, likely reflecting seasonal demand. Services confidence fell one percentage point to 41%. Regional Outlook Seven of the UK’s twelve regions and nations saw a rise in confidence in December. The strongest monthly gains were recorded in Wales and Yorkshire & the Humber, both rebounding sharply from November. The East Midlands also posted a notable rise. Despite smaller monthly increases, the West Midlands and London hold the highest confidence levels nationally, at 63% each, well above the UK average of 47%. Paul Kempster, Managing Director for Commercial Banking Coverage, Lloyds Business & Commercial concludes: "To end the year stronger than where we started will be a boost for businesses as they gear up for the growth opportunities that they hope lie ahead in 2026. As we approach the peak sales period for retailers, it’s great to see their confidence rise as well as the considerable gains seen in construction." "For all businesses regardless of sector, maximising cashflows, investment and a keen eye on margins will stand them in good stead as we head into 2026."

A poll of 1,024 small and medium sized (SME) founders, owners, and senior executives for Rathbones found that 29% are already using AI in their business, with a further 28% planning to adopt it in the future. Among those already using AI, one third have reduced hiring of graduates or entry-level staff, although 62% say AI has had no impact on hiring so far. The biggest impact however lies ahead, with almost half (46%) of executives of SMEs expecting to cut back on hiring as they make greater use of AI, and 16% predicting a significant reduction. The roles most at risk from further AI adoption include data analysis and reporting (50%), customer service and support (48%), and IT and software development (41%). Rathbones’ findings comes as recent employment data reveals almost a million (946,000) young people (aged 16 to 24 years) are out of work, education or training. Stephanie Ebner, a Financial Planning Lead at Rathbones, says: “AI adoption isn’t just a big business trend – it is increasingly filtering down to SMEs, and that could create a vacancy black hole for young jobseekers. Many employers now face a brutal choice: hire and train a graduate or deploy AI that can do most of the job instantly." “With 5.68 million people employed by UK SMEs, these businesses have a pivotal role in shaping the future of work." "But there’s a fine balance to strike: boosting efficiencies, productivity and profits must not come at the expense of building the UK’s skills pipeline or giving young talent a fair start." “The business owners across the country we speak to want to create opportunities for young adults yet cost pressures - from tax changes such as increase in employer national insurance to broader inflation - are the biggest blockers. Tackling these challenges is essential if we’re to avoid widening generational inequality,” she added. Other Key Findings: Around a quarter (25%) of SMEs believe greater adoption of AI will complement rather than replace roles, while a further 20% are unsure of the impact. Around one in eight (13%) say AI is not applicable to their business, while 30% are not considering using it.

Retail sales volumes fell at an accelerated rate in the year to December, extending a period of weakness that began in mid-2023 – according to the latest CBI Distributive Trades Survey. The new year is expected to start on a gloomy note for the retail sector. Retailers anticipate that annual sales will fall sharply next month, with expectations at their weakest since March 2021. Key findings included: Retail sales volumes fell at an accelerated rate in the year to December (weighted balance of -44% from -32% in November), with the downturn expected to deepen in January (-57%). Sales for the time of year were judged to be “poor” in December, to a greater extent than last month (-31% from -20% in November). Next month’s sales are set to similarly disappoint against seasonal norms (-34%). Online retail sales volumes declined at a moderate rate in the year to December, following two consecutive months of growth (-12% from +13% in November). Sales are expected to contract at a steep pace next month (-42%). Wholesale sales volumes fell in the year to December at the fastest rate since June 2020 (-50% from -31% in November). Wholesalers expect sales to decline at the same pace next month (-50%). Total distribution sales volumes (including retail, wholesale, and motor trades) fell in the year to December at the fastest rate since June 2020 (-46% from -35% in November). Firms anticipate that the pace of decline will quicken next month (-53%). Martin Sartorius, Principal Economist, CBI, said: “Retailers reported that annual sales volumes fell rapidly in December, as weak consumer confidence contributed to softer trading conditions in the lead-up to Christmas." "Firms do not anticipate any relief in the new year, with sales expectations deteriorating to their weakest in over four years." "The gloomy retail outlook was mirrored across the wholesale and motor trades sectors, which also expect sales to continue falling in January." “Against a backdrop of weak trading conditions, there is a clear need for government action to lower the cost of doing business. Progressing reforms to the business rates system, lowering crippling energy costs, and finding balanced solutions to the Employment Rights Bill through secondary legislation would help restore confidence and unlock vital investment.” In addition, data from the survey showed: Retail orders placed upon suppliers declined at a fast pace in the year to December (-42% from -25% in November). Retailers expect to cut back on order volumes at a faster rate in January (-59%), marking the weakest expectations since March 2021. Retail stock volumes were judged to be “too high” relative to expected sales in December, reaching their highest balance since May 2020 (+35% from +18% in November; long-run average of +17%). Stock positions are expected to soften markedly next month (+12%). Motor trade sales volumes contracted at strong pace in the year to December, though the decline was slower than in the previous month (-39% from -55% in November). Sales are expected to fall at a faster rate in December (-49%).

Running a family business is unlike running any other kind of enterprise. The blend of family relationships, commercial pressures, long-term stewardship and generational ambition creates both unique strengths and unique challenges. No one understands this better than Family Business United — and that is precisely why membership matters. In a rapidly changing economic landscape, family firms need more than generic business support. They need a community, a voice and access to insight that reflects their reality. A Community Built Around Family Business Family Business United exists solely to support, champion and connect family businesses. Membership provides access to a trusted network of peers who understand the complexities of family ownership — from succession planning and governance to growth, exit and legacy. Being part of this community means you are not navigating challenges alone. Members benefit from shared experience, open conversation and practical insight drawn from real family businesses at every stage of their journey. Independent, Credible and Family-Focused Family Business United is independent and family-business-led. Its focus is not selling products or pushing one-size-fits-all solutions, but advocating for the long-term success of family enterprises. Members gain access to research, commentary and thought leadership that is firmly grounded in the family business sector — helping owners and leaders make better, more informed decisions. A Stronger Voice for Family Businesses Family businesses play a vital role in the UK economy, yet their voice is not always heard clearly in national debate. Family Business United works to raise the profile of family firms, highlighting their contribution, resilience and social value. Membership helps strengthen that collective voice — ensuring family businesses are recognised, celebrated and better understood by policymakers, media and the wider business community. Insight That Matters Through regular insight, reports and think-tank activity, Family Business United shares timely intelligence on trends affecting family businesses, including: Succession and next-generation leadership Governance and ownership structures Talent, culture and values Growth, innovation and sustainability This insight is practical, relevant and designed specifically for family-owned enterprises — not generic corporate models. Recognition and Celebration Family Business United is widely known for celebrating excellence through family business awards and recognition programmes. Membership offers opportunities to showcase achievements, share stories and take pride in what makes family businesses special. Recognition is not just about trophies; it is about raising confidence, attracting talent and reinforcing the values that underpin successful family enterprises. Supporting the Next Generation One of the greatest challenges facing family businesses is ensuring continuity. Family Business United places strong emphasis on next-generation engagement, helping future leaders develop confidence, capability and connection to the wider family business community. Membership supports continuity by fostering learning, mentoring and inspiration across generations. Practical Value, Long-Term Perspective Membership of Family Business United is not about quick fixes. It is about long-term thinking, shared values and building stronger businesses for the future. Whether you are a first-generation founder or a multi-generational family firm, membership provides: Perspective grounded in experience Connections that matter Support that understands family dynamics A platform that champions family business success More Than Membership Becoming a member of Family Business United is a statement. It signals a commitment to stewardship, responsibility and the belief that family businesses matter — to the economy, to communities and to future generations. In an increasingly complex world, standing together has never been more important. Find out more and become a member today