Will We See Growth In 2026?

2026 could be the year the economy finally turns a corner — or the moment voters conclude nothing has changed. In the East of England, the queues at foodbanks and the emptying of local pubs are already telling a story about which way the country might be headed. Colchester’s network of 11 foodbank centres is serving up to 3,000 people a month. Across the region, anti-poverty charity figures show 332,500 emergency food parcels were distributed in the last year — a slight fall on the year before, but still a sizeable demand. Staff describe clients from all walks of life, including teachers, police and nurses, who are prioritising basics over other bills. Government measures announced in November aim to ease pressure: the minimum wage is rising, the two-child benefit cap is being removed, some environmental levies are being taken off energy bills, and ministers say steps such as freezing rail fares and prescription charges will help households. Treasury spokespeople also point to a one-off average energy bill reduction of around £150 and a multi-billion-pound package intended to support hospitality. But those moves have winners and losers. For small pub owners in and around Colchester, the squeeze is tightening. One proprietor who recently returned a third pub to a brewery says successive cost rises — higher employer National Insurance, the end of some rate relief and a looming revaluation — have pushed margins to breaking point. He estimates the increase in the minimum wage adds a very large sum to his annual payroll. Industry figures warn business rates could climb sharply for many premises over the next three years, a rise that campaigners say will hit high streets and community venues hard. That tension is the political as well as economic dilemma: policies designed to put cash in pockets can also raise costs for employers, potentially leading to fewer jobs or reduced hours. Opinion polls already suggest a majority of voters put the economy and the cost of living at the top of their concerns, while local business groups report confidence at low levels. What happens next will matter for households and for party politics. If foodbank use is still widespread by next Christmas, the public may conclude measures fell short. Conversely, a visible drop in hardship and new private-sector investment would strengthen the case that growth is returning. Practical signs — shorter foodbank queues, steadier pub trade, businesses willing to recruit — will be the clearest evidence that 2026 has become a year of recovery rather than stagnation. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.bbc.co.uk | Read original article