At the start of 2026, the FTSE 100 smashed the 10,000 mark for the first time, breaking records and establishing a new high. Less than a week later, data provider Calastone announced that outflows from British investors exiting the UK stock markets since June 2025 represented “the biggest selling spree on record”, as described by The Times. It’s no wonder that companies and their advisers are struggling to make sense of the market. The pattern of conflicting data looks set to continue into 2026, but are we talking ourselves (and the wider economy) into unnecessary pessimism?
On Sky New’s first Sunday Morning with Trevor Phillips programme of the new year, panelists were asked to comment on whether it was more likely that NHS waiting lists would fall in 2026 or that the country would enter a recession. The panel (including representatives from The Sun and The Times) confidently stated that the economy was in relatively good shape and were consequently surprised by the findings from the More In Common December 2025 survey showing that 60% of people believe that the UK will go into recession this year.
This pessimism could be due to the unceasing headlines across all sections of the media highlighting the number of business founders leaving the UK, warnings of widespread unemployment as a result of rising business costs, and that Britain is heading for the “worst of all worlds” as GDP flatlines. It also reflects a series of Government decisions that have had a direct impact on households. Price increases in pubs, high street retailers and restaurants closing and the difficulties faced by school leavers and university graduates looking to find casual or permanent jobs, all feed into people’s “lived experience” – and appear to be visible evidence of an economy that isn’t working. Even if the headline economic indicators consistently tell a different story: interest rates are down, inflation is down and the economy is growing, albeit slowly.
Donald Trump, too, has played his part. His presidential Executive Orders have delivered immediate results and contrast with the painful pace of change in UK business practices that are layered in law and consultations.
Fortunately, one cohort appears to be bucking the negativity trend. According to the Global Entrepreneurial Wealth report by HSBC Private Bank, three quarters of company founders based in the UK were very positive about the business outlook. Britain ranked first in the world for optimism ahead of other European countries and America, a finding seconded by Lloyds Bank’s barometer of UK business confidence which also showed an increase in optimism in December – ten points up from the start of 2025. This sentiment chimes with our experience of talking to clients and contacts about the coming year.
This is encouraging news for the future of the UK economy and for AIM in particular. Business owners remain confident in their own abilities to deliver, believe in what they are doing and are pushing ahead despite the ambient background noise. Such companies should be encouraged and helped as much as possible to develop their full potential.
Over the last few years, there have been many industry pundits, bodies and newspaper columnists that have put forward their ideas for what Britain needs to do to make its capital markets more attractive and competitive. Following Government consultation, some measures have been adopted to ease the regulatory burden for companies looking to raise finance and we will hopefully start to see the results of these changes in 2026. However, we can do more. What change would have the biggest impact on entrepreneurs, help to reinvigorate the market and support investor behaviour?
The following four ideas are our runners and riders for initiatives that could move the dial in 2026:
- Eliminate Stamp Duty on buying and selling shares
- Oblige UK pensions funds to invest a minimum of 15% of their funds in UK stocks
- A “Tell Sid”-style Government advertising campaign to make stock market investment understandable and accessible to a much wider public; and finally,
- Substantially increase Business Asset Disposal Relief as an incentive for reinvesting in UK businesses.
Let us know which one measure would get your vote on LinkedIn. Or tell us about your alternative suggestion? We look forward to hearing from you.
This article was originally published in the February 2026 AIM Advisers Rankings Guide. For more information, please contact Joseph Archer.
