It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Paul Tutin, chairman and managing partner at professional services firm Streets.
As we approach 2026, I am reminded of the many regulatory, economic and political cycles I have seen over the years and how profoundly they can shape business performance. Each period of change brings new pressures, but experience has shown me that those businesses which are prepared are consistently the ones which adapt most effectively.
One of the most significant shifts for small and medium sized enterprises will be the introduction of the revised FRS 102 financial reporting standard from 1 January 2026. The requirement to bring most leases onto the balance sheet, combined with the new five step model for revenue recognition, will alter the way liabilities and earnings are presented. These kinds of changes have historically created challenges for unprepared firms, so reviewing accounting policies and system readiness well in advance is essential.
The expansion of Making Tax Digital from April 2026 will also have a major impact. Individuals with qualifying income above £50,000 will move into mandatory digital record keeping and quarterly reporting. Over several cycles of tax reform, I have seen how disruptive these transitions can be without early planning. Ensuring digital compatibility and streamlined processes will significantly reduce the risk of compliance issues.
Beyond regulation, scalability will be a defining factor for growth. Investment in automation, data capability, supply chain resilience and workforce planning will help businesses respond to fluctuations in demand without compromising performance. Strong financial management remains equally important, with careful scenario planning and disciplined cash flow oversight essential for long term resilience.
