2025 was, on balance, a good year for UK business. And I would be right to say It did not always feel that way in real time.
There were the familiar frustrations: taxes rose again, political promises went unmet, and the drought of IPO on the London Stock Exchange continued to prompt uncomfortable questions about Britain’s competitiveness.
Yet beneath the surface noise, the picture was far from bleak. The FTSE 100 delivered a historic 21% return in 2025, closing the year at record highs and crossing the 10,000 mark on the first trading day of 2026. UK companies raised over $8 billion in venture capital, with investment up 3% in the first half of 2025 compared with the second half of 2024 (HSBC). Meanwhile, 426,000 new companies were incorporated in H1 2025 (NatWest), including record AI companies – pointing to a broad-based recovery in entrepreneurial confidence.
So there were the bad and the good.
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