ICAEW’s Prepare for 2026 insights have brought together expert voices from across the profession, and their perspectives offer a valuable lens through which to consider the challenges and opportunities ahead. What emerges is a picture of a business landscape shaped by regulatory change, technological acceleration, sustainability imperatives and a shifting economic backdrop. For Wales, these themes intersect with our own regional strengths and vulnerabilities, creating a distinctive set of priorities for the year to come – especially given the Senedd Election on 7th May.

Indeed, I will be starting the year by attending a series of events hosted by The Enterprise Forum. Representatives from Welsh Labour, Plaid Cymru, Welsh Liberal Democrats, Welsh Conservatives and Reform UK will be discussing their manifestos for 2026. I hope that this programme will provide a constructive opportunity to align policies with business needs as the economic context cannot be ignored. 

As ICAEW’s Director of Economies, Suren Thiru, observed in his recent analysis, the UK ended 2025 on a subdued note, with official figures showing a 0.1% contraction in both September and October and no growth recorded since June. This stagnation sets a cautious tone for the early months of 2026, and Welsh businesses will be watching several key indicators closely. 

The first is ICAEW’s Business Confidence Monitor for the fourth quarter of 2025, due on 14 January. Confidence fell sharply at the start of last year amid concerns over the tax burden and slowing domestic sales, and the Q4 results will provide an important signal of how businesses are feeling as we enter the new year. 

The second is the November 2025 GDP data, to be released on 15 January, which may confirm that the economy continued to contract into the winter. And the third is the December inflation figure, expected on 21 January, which could show a slight easing in the headline rate. While falling inflation and lower interest rates offer some relief, ICAEW economists have been clear that these improvements may not be enough to offset the broader weakness in the short term.

Against this backdrop, the insights from ICAEW’s sector specialists take on added significance. In audit and assurance, the message is one of continued regulatory evolution. Expectations around transparency, quality and independence are rising, and firms—particularly those in Wales supporting the SMEs and family owned enterprises that represent over 99% of businesses registered in Wales—will need to invest in skills, technology and internal processes to meet these demands. 

In corporate finance, ICAEW commentators note that deal making in 2026 will be shaped by tighter financing conditions and more cautious investor sentiment. Yet opportunities remain, especially in areas where Wales has established strengths such as renewable energy, advanced manufacturing and technology. Businesses seeking investment or planning acquisitions will need to demonstrate resilience, strong governance and credible growth strategies.

Corporate governance experts within ICAEW highlight a growing emphasis on organisational culture, stakeholder engagement and long term value creation. For Welsh businesses, many of which operate within close knit communities, this presents an opportunity to differentiate through purpose driven leadership and transparent decision making. 

Sustainability itself remains a defining theme. ICAEW’s sustainability commentators stress that businesses must move beyond compliance and embed environmental and social considerations into strategy, operations and culture. Wales is well positioned to lead in this area, given its strong policy focus on net zero and the circular economy. For many organisations, 2026 will be the year to accelerate their transition, measure their impact more effectively and engage stakeholders more deeply.

Tax, too, will be an area of continued complexity. With fiscal pressures mounting, ICAEW’s tax experts anticipate further changes in allowances, incentives and compliance requirements. Proactive planning will be essential, particularly for SMEs that may feel the impact of policy shifts most acutely.

Taken together, these insights point to several priorities for Welsh businesses. Resilience remains paramount. The economic outlook suggests that organisations must continue to strengthen cash flow management, build flexible supply chains and invest in digital tools that enhance efficiency. Skills and talent development will also be critical, especially as regulatory expectations rise and technology reshapes the profession. As always, we will continue to support our members through training, CPD and professional development programmes to help meet these needs.

At the same time, Welsh businesses should embrace sustainability not just as a compliance requirement but as a strategic opportunity. Measuring environmental impact, embedding sustainable practices and engaging stakeholders meaningfully will be essential steps in building long term value. 

And finally, there is a need to leverage Wales’s unique strengths. Our strong SME base, growing tech ecosystem and leadership in renewable energy position us well to attract investment and talent in the years ahead.

While the early indicators for 2026 point to continued economic headwinds, there is also cause for optimism. Lower inflation, falling interest rates and improving global conditions could support a gradual recovery later in the year. ICAEW’s experts consistently emphasise that businesses investing in governance, sustainability, digital transformation and strategic clarity will be best placed to thrive.

At ICAEW Wales, our commitment is to support our members and the wider business community through this period of change. By staying informed, adaptable and forward looking, Welsh businesses can turn the challenges of 2026 into opportunities for growth and long term success.