Following the Chancellor’s Spring Forecast, the Office for Budget Responsibility’s (OBR) latest growth forecast revised down to 1.1% for 2026 is somewhat of a reality check for UK businesses, particularly in light of recent geopolitics.
While the promise of accelerated growth to 1.6% in 2027 offers more optimism in the long-term, we’re not out of the woods just yet.
That said, there is a real risk that business owners adopt a passive “wait and see” approach, holding back until 2027.
For most of the SMEs we work with, that is simply not a viable option.
A slower rate of economic growth in 2026 is likely to intensify competition across the market.
BETTER POSITIONED
Businesses that continue to prioritise strategic investment, rather than delaying key decisions, will be far better positioned to enter 2027 prepared to capitalise on the opportunities that a stronger, expanding economy can offer.
Uncertainty is the enemy of investment and economic growth.
While this week has brought an adjustment to GDP forecasts, and unprecedented global events, the broader message for the UK economy is one of continuity; businesses can proceed with confidence, supported by the stability of a ‘no policy change’ fiscal event.
The remainder of 2026 should, in my opinion, be regarded as a foundation year.
The direction of travel is positive; growth may be modest, but it is happening.
With inflation continuing to ease, this year has the potential to become a much-needed launch pad for UK businesses, positioning them strongly for the opportunities ahead.
