Business leaders across the North West of England have issued a unified call for stability as they enter 2026, arguing that a predictable economic environment is essential for firms to invest, innovate, and navigate ongoing cost pressures.
The Paramount Need for Tax and Policy Certainty
Adrian Young, tax partner at accounting firm HURST, stated that business leaders are united in their desire for the new year to bring much-needed stability. He emphasised that this is crucial following recent global shocks and domestic policy shifts, particularly around taxation.
"Businesses are not generally calling for lower taxes," Mr Young explained, "rather they are asking for clarity and predictability." He cited the recent budget debacle, where tax-raising policies were suggested only to be dropped, as a source of significant anxiety. This was especially acute for employers who had already been impacted by changes to national insurance and wage levels in early 2025.
He warned that frequent, unexpected changes to tax rules make long-term planning exceptionally difficult, particularly for larger employers. Predictability in employment costs, he added, is vital for workforce planning and ensuring fair outcomes for staff.
Addressing Finance, Skills, and the Green Transition
Steven Mason, an insolvency practitioner at Inquesta, echoed the call for a stable framework. He identified key priorities for SMEs in 2026: cost relief, reduced bureaucracy, and better access to finance. "Simplified lending processes and alternative financing options may well enable businesses to innovate and expand," he said, while also highlighting the chronic issue of late payments from larger clients.
On the skills front, Paul Cherpeau, chief executive of Liverpool Chamber, confirmed that training will remain a major focus. With labour costs rising and skills shortages acute in sectors like construction, employers are seeking candidates with stronger 'soft' skills and digital literacy to harness technologies like AI.
In the green energy sector, Amy House, director of Green Economy in Manchester, stressed the need for public-private collaboration in 2026. She hopes progress translates into delivery, with more investment in clean energy and clearer business incentives, though she cautioned that skills shortages and cost pressures could slow progress.
Investment Landscape and Legal Challenges
The investment picture shows mixed signals. Claire Alvarez, partner at Foresight Group, noted that regionally based SMEs remain "structurally under-served" for growth capital, despite their vital role. With over £500 million to deploy, Foresight expects an active year in sectors like healthcare and engineering.
Barney Leaf, a corporate partner at Primas Law, suggested that with interest rates at a three-year low, private equity investment should pick up, particularly in the robust tech and SaaS sectors, while life sciences awaits a much-needed injection of support.
However, legal hurdles persist. Charles Millett, employment law partner at Morecrofts Solicitors, warned that backlogs in the employment tribunal system are a major disincentive, with claims submitted now potentially waiting until 2027 to be heard. He urged the government to address this in 2026.
The consensus from the region's business community is clear: without the stability to plan confidently, the resilience of North West firms will continue to be tested amidst high costs and economic uncertainty.
