New Year Outlook 2026: Early and encouraging signs of a mild zombie apocalypse

What a difference a year doesn’t make. This time last year the Government had just announced huge tax rises, having previously said they weren’t coming; trade wonks were wondering what Donald Trump’s next tariff policy would be; and Labour politicians awaited the May elections with trepidation. Yet this sense of déjà vu is only part of the story. Beneath the surface, several things have changed in ways that will matter for the years ahead: the political system has fragmented; new technologies are starting to affect how work is done; and the UK is edging towards a demographic milestone not seen in modern times. This New Year Outlook looks back at some of the less-remarked developments of 2025, and forward to what they mean for the economy in 2026 and beyond.