Christie Finance in Business Outlook 2026

SMEs continued to face challenging trading conditions throughout 2025, driven by the National Insurance contribution increases introduced in the 2024 Budget and persistent inflationary pressures. Last year, we accurately predicted that the Bank of England base rate would close between 3.75% and 4% for 2025. Current sentiment suggests that 2026 will bring two to three rate cuts, potentially reducing the base rate to 3.25% to 3% by year-end. This would be a welcome development for both businesses and consumers, contingent on inflationary pressures easing in line with current forecasts.