This report is from this week’s CNBC’s UK Exchange newsletter. Like what you see? You can subscribe here.

A new year brings with it optimism for the coming 12 months

The main hope for the U.K. must be that 2026 proves to be better — for the economy, households and individual businesses — than 2025.

The economy entered the new year flatlining and, while in 2025 the FTSE 100

index enjoyed its best one-year gain since 2009, that was hardly indicative of the health of many individual businesses.