The latest national Business Confidence Monitor (BCM) shows that business sentiment slipped deeper into negative territory amid uncertainty about the Budget and rising concern about both the tax burden and regulations. However, companies are optimistic that domestic sales and exports growth will improve over the next 12 months.

Welsh business confidence fell into negative territory in the fourth quarter of 2025, following the UK-wide slump in growth and confidence.

As we step into 2026, businesses across Wales find themselves navigating an economic environment that is as complex as it is full of possibility. The past year (or more) has tested the resilience of organisations of every size, and the year ahead will demand the same blend of adaptability, strategic clarity and long term thinking. From my vantage point at ICAEW Wales, it is clear that Welsh businesses are entering a period where informed decision making and forward looking leadership will matter more than ever.

As Director of ICAEW in Wales, I spend much of my time listening to business leaders, policymakers, communities, and our members across our nation. And I’ll be honest: it is easy to focus on the negatives. Rising costs, global uncertainty, and the challenges of adapting to new technologies can weigh heavily on us all.

Later this week, I’ll be hosting a discussion forum with ICAEW members from accountancy practices across Wales. It’s a chance to talk openly about what they believe that the next Welsh Government should prioritise after the election to help our economy grow.