SMALL business owners have shared their “cautious optimism” for 2026 but warned “the wider UK economy is facing a serious reality check”.
In 2025, businesses were hit by National Insurance hikes, ongoing high interest rates and stubborn inflation, hitting the spending power of potential customers.
Financial advisers, mortgage brokers and AI experts have shared how they hope their 2026 goes.
Financial advisers said they were expecting 2026 to be bumpy, mortgage brokers were upbeat, while AI experts said businesses will start working out that AI needs to be used more intelligently — but warned that AI “charlatans are already deep inside the building”.
Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said: “I am not heading into 2026 with a ‘clear skies ahead’ mindset. I am cautiously pragmatic: the need for advice usually rises in periods like this, but so does client anxiety and price sensitivity.
“My biggest concern is a more volatile, policy-driven year where clients are squeezed from both sides: the ongoing loss of currency purchasing power and the risk of sharp market repricing.
“Renewed monetary expansion (money printing) risks keeping inflation pressures alive and undermining major currencies into 2026, leaving households poorer in real terms even if headline inflation appears to ease at times.
“Markets do not ‘gently adjust’ – once momentum regimes turn, repricing can be abrupt, which is why I expect 2026 to be bumpier than many are prepared for.
“From a planning standpoint, my stance is resilience over predictions: adequate cash buffers, careful debt decisions that do not assume rapid rate cuts and portfolios that are diversified for both inflationary and recessionary scenarios.”
Cautiously optimistic
Scott Gallacher, Director at Leicester-based Rowley Turton, said AI is a chance for his firm to spend less time on administration.
He added: “We are cautiously optimistic as we head into 2026. This is a big year for us as it is our 30th anniversary. The biggest challenge — and opportunity — for us is artificial intelligence.
“On the positive side, AI has the potential to significantly improve productivity and profitability, which is very much on our agenda for 2026 as we set ourselves up for the next 30 years.
“Used properly, AI can help advisers spend more time on judgement, planning and client relationships, and less time on administration.
“However, AI also presents a clear risk for ourselves and potential clients. Many of us are relying on AI in all aspects of our lives, including taking unregulated ‘advice’ without any of the traditional consumer protections.
“We are also seeing potential clients using AI to recommend appropriate advisers, replacing traditional search engines. Consequently, we need to revise our marketing approach accordingly.
Expecting a busy January
Mortgage brokers said they are hoping for a positive 2026 with inflation and interest rates coming down.
Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said: “2026 has the potential to be a brilliant year for the property and mortgage market. Over the past few months, the tide has been turning and there have been glimmers of hope. Rates are headed in the right direction, base rate chatter is positive and we survived the Budget.
“I’m expecting a busy January and hopefully that will continue throughout the year. Plenty to be excited and optimistic about as we turn the corner into the New Year. Compared to the previous few years, if you’re not excited, you’re in the wrong game.”
Ranald Mitchell, Director at Norwich-based Charwin Mortgages, also expects a strong 2026 for his business.
He added: “2026 has the makings of a proper mortgage spring. Lenders are sharpening rates, affordability is loosening in a more proportionate way, and a big wave of fixed deals is rolling over so we expect an even stronger year than 2025.
“All eyes are on inflation and jobs, though, as they could still throw a surprise punch.”
Chris Schutrups, Founder at Southampton-based The Mortgage Hut, said he is hoping for stability in 2026.
He continued: “2025 has definitely been one of the more challenging years for most businesses we speak to, including our own. Because of that, ‘cautious optimism’ is certainly the mindset we are carrying into 2026.
“While economic data indicates some strong headwinds ahead for businesses and the wider economy, we remain hopeful. With the increased certainty following the Budget, combined with a buildup of pent-up demand from those who have been waiting on the sidelines, 2026 has the potential to be a year of much-needed stability.
“We don’t necessarily expect a runaway train of economic growth, but we are hoping to see an end to the slide in sentiment and a more settled outlook. There are still plenty of reasons to be positive for the year ahead. It’s all about looking forward and creating our own opportunities.”
The wider economy is facing a serious reality check
AI experts said 2025 was a turning point for AI — and they expect 2026 to be even more so — but said businesses are likely to start using it in a more measured way.
Colette Mason, Author & AI Consultant at London-based Clever Clogs AI, said: “2025 was the year everyone bought the AI hype. 2026 will be the year they realise their ‘AI strategy’ was actually a subscription to disappointment and a folder full of generic prompts that sound like everyone else’s churned slop. The good news? That’s exactly when the real opportunities emerge.
“Once businesses stop chasing hands-off workflow fantasies and start asking ‘how do we actually make this work without breaking our team’s morale, risking our reputation, or losing our voice?’, that’s when proper implementation begins.
“I’m watching for three things: who admits their AI dabbling left them underwhelmed and rebuilds properly, who doubles down on quality automation, and who quietly builds collaborative intelligence while competitors chase the next shiny thing.
“The businesses who will thrive aren’t the ones with the most AI tools. They’re the ones who figured out how to stay brilliant with AI backing them up, not replacing them.”
Rohit Parmar-Mistry, Founder at Burton-on-Trent-based Pattrn Data, an AI consultancy, said he is worried about the UK economy as a whole.
He added: “I’m optimistic for my own consultancy, but the wider economy is facing a serious reality check. We’ve spent 2025 drowning in corporate theatre, endless announcements about the ‘AI Revolution’ that amounted to little more than slide decks. 2026 has to be the year of proper implementation, where the rubber finally meets the road.
“My biggest worry is that the charlatans are already deep inside the building. The market is currently infested with cowboys selling ‘magic’ AI, black-box solutions promising to vanish costs overnight.
“Executives, squeezed by the government’s poor economic choices, are buying this snake oil out of desperation.
“They want a miracle, but they’re buying a disaster. But that’s exactly why 2026 will be a strong year for the realists. The ‘magic’ is going to fail, and badly. When it does, businesses will stop looking for wizards and start looking for the adults in the room to clean up the mess.
“The hype party is over. Now the real work begins.”
Photo by BoliviaInteligente on Unsplash.
