New research reveals that the UK development industry is entering 2026 with cautious optimism but is still held back by deep-rooted staffing challenges that are slowing delivery and squeezing project viability. The Development Index – produced by real estate and construction hiring specialist, Cobalt Recruitment – captures the current challenges, along with the opportunities and pressures shaping the year ahead. A sector stabilising, but still under strain Drawing on interviews with industry leaders across the UK’s leading property developers, housebuilders, REITs, and investment firms, the report reveals unsurprisingly low sentiment in the market in 2025, but a quiet confidence across the development ecosystem going into 2026, with slow signs of improvement emerging. Softening finance terms, potential further interest rate reductions, and anticipated policy clarity, particularly around the National Planning Policy Framework, are helping to rebuild sentiment. Yet the challenges remain significant. Increased planning delays, staff shortages, constrained project viability, a shortage of viable schemes for lenders, rising cost pressures, and an acute lack of end occupiers and buyers, are all taking their toll on the market. Skills shortages remain a barrier to delivery While there is cautious optimism, this is at risk of being destabilised by growing skills shortages. The Development Index highlights a sector still grappling with evolving talent gaps across certain skills and locations in planning, land, development, technical, design, commercial, and delivery roles, coupled with a challenging market environment. Employers are increasingly seeking professionals who combine technical knowledge with commercial acumen, ESG fluency, and digital literacy, especially in AI-enabled appraisal and design tools. With the continued shift toward refurbishment and regeneration projects, which now represent more than four fifths of new schemes underway, the demand for professionals with skills tailored to complex refurbishment, sustainability standards and evolving regulatory frameworks, is also set to increase. Commenting on the report, Maria Sinclair, Managing Director of Cobalt UK, said: “The Development Index highlights a UK development market that remains ambitious but increasingly constrained in its ability to deliver. Economic pressures, planning complexity and ongoing skills shortages are emerging as significant risks to progress across the sector." "Moving from ambition to delivery will require a renewed focus on execution, with investment in skills, stronger development teams and access to the right expertise becoming critical to navigating uncertainty and unlocking growth." "At Cobalt, we see first-hand how the availability of experienced professionals can accelerate projects and support delivery. The Index is designed to support that discussion, setting out the key pressure points and what the industry must address to move forward with confidence.”

Walmart Inc. (Nasdaq: WMT) announced that its Board of Directors has elected new leaders to its Executive Council. Incoming President and Chief Executive Officer of Walmart Inc. John Furner also shared additional changes designed to help fuel innovation and drive the new era of retail. Furner said: "Over my 32 years with Walmart, I’ve seen that our people are our greatest competitive advantage. These internal promotions reflect our culture of opportunity and the depth of our leadership bench. These leadership changes also mark a key step in how we organize for the future. Even the best teams need the right structure to win." "As AI rapidly reshapes retail, we are centralizing our platforms to accelerate shared capabilities, freeing up our operating segments to be more focused on and closer to our customers and members." These changes, which are effective February 1, 2026, reflect a bench of leaders who are deeply grounded in the company’s purpose and values, and have the vision and experience to guide our next chapter. Leadership appointments include: Seth Dallaire, EVP and Chief Growth Officer for Walmart U.S. is being named EVP and Chief Growth Officer for Walmart Inc. Over the past several years, Dallaire and his team have helped Walmart U.S. expand beyond traditional retail, building new revenue streams enhancing customer value. In his new enterprise role, Dallaire will have responsibility for global enterprise platforms, including Walmart Connect/digital advertising, Walmart+, Walmart Data Ventures, Vizio, Sam’s Club MAP, as well as a global Marketplace platform. David Guggina, EVP and Chief eCommerce Officer for Walmart U.S., will become President and CEO of Walmart U.S. Under Guggina’s leadership, Walmart has built industry-leading delivery capabilities that today serve 95% of U.S. households in under three hours. Guggina’s background in eCommerce and supply chain operations uniquely positions him to continue to drive our goal of being America’s favorite place to shop. Previously he was EVP of Supply Chain Operations for Walmart U.S. Chris Nicholas, President and CEO of Sam’s Club U.S., will succeed Kath McLay as President and CEO of Walmart International. Nicholas grew up in retail, he’s a proven operator and has significant international experience, having lived and worked in more than 10 countries. Previously he served as chief operating officer for Walmart U.S. with responsibility for all aspects of Walmart’s U.S. Store Operations and Supply Chain, CFO for Walmart U.S. and CFO for Walmart International. Latriece Watkins, EVP and Chief Merchandising Officer for Walmart U.S., is being named President and CEO of Sam’s Club U.S. Watkins started her career with Walmart as an intern in 1997. Among her many successes, she reshaped the Walmart U.S. assortment strategy, drove operational excellence, and ensured a consistent, trusted shopping experience. Watkins has held a wide range of leadership roles across Sam’s Club, Walmart U.S. merchandising, People and U.S. store operations.

Bagnalls has successfully completed a major redecoration project at The Milner Hotel, a four-star landmark in the heart of historic York. The work was delivered by the company’s Leeds branch and involved extensive upgrades across guest and communal areas within the hotel. The project was overseen by Bagnalls Contracts Manager Max Rollinson, who led a team of experienced painters and decorators throughout the six-month programme. Works included the preparation and redecoration of multiple guest bedrooms and a wide range of communal spaces, such as corridors, bar areas, entrance lobbies and meeting rooms. Initial preparation involved scraping back all surfaces to remove loose or flaking paint, followed by filling and abrading cracks and holes to achieve a smooth, even finish. Tower scaffolding was used to safely access high-level ceilings in the reception, bar and lounge areas. Ceilings were refreshed using Dulux Vinyl Matt, while walls received two coats of Dulux Diamond Matt. In the hotel bathrooms, Dulux Sterishield Diamond Eggshell was applied. This water-based coating is quick-drying and contains a bactericide designed to reduce bacterial growth, supporting high standards of hygiene. All colours were carefully selected to match the hotel’s existing palette, ensuring the refreshed interiors complemented the building’s established style and character. The project ran from March to September and was carefully planned to minimise disruption to guests. Much of the work in communal areas was completed during night shifts, allowing the hotel to operate smoothly during the day while maintaining high standards of safety for both guests and staff. The quality of the work led to further redecoration and painting tasks being awarded to Bagnalls during the project, reflecting the hotel management’s positive response. The project also marks another milestone for Max Rollinson, who began his career at Bagnalls as a Management Trainee and now leads major projects for the business.

HMG Paints is combining its passion for Art and the local environment by supporting an upcoming exhibition entitled “River Stories” focusing on the River Irk, the very river that runs through the heart of the companies Manchester site. The exhibition being produced by Fiona Brehony, in collaboration with Liz Wewiora and Many Hands Craft Collective and in partnership with Manchester Histories, commences on 16th February 2026 at The Hub, Manchester Central Library. This multidisciplinary exhibition explores the River Irk through sound, image, and community storytelling. It will combine field recordings (including from HMG Paints), collaborative documentary film, and creative works from Many Hands Craft Collective, all rooted in the river's industrial, social, and ecological significance. John Falder, HMG Paints Chairman, commented: “We’re delighted to be supporting this incredible project which brings together artists, community groups, and heritage organisations to explore the environmental, historical, and emotional dimensions of this vital local waterway. It's been a pleasure to welcome Fiona onto our site over the last year or so and we’re excited to see the result of her work and delve deeper into the rich history of the River Irk.” Having a river running through a paint site might not sound like a perfect scenario but HMG have embraced the river as a key feature since moving to Riverside Works in 1958. In fact, the business even won an award for its work with the river having been awarded the Waterside Regeneration Award in the Northwest Business Environment 2003 scheme, organised by the Mersey Basin Campaign. Like the river and the local environment, HMG has also been supportive of the local arts and is well known for its iconic ‘Dreadnowt’ sculpture by artist Jonathan Woolfenden, which was erected in 1993, at the entrance of the New Era Woods, which were planted by HMG in the 1980’s. However, HMG’s engagement with the arts doesn’t stop there, the business also hosted Mancunian artist Max Hague who developed a series of works utilising salvaged paints and materials from HMG’s production. They also collaborated with Interactive Arts students from the Manchester School of Art, Ryan Higgins and Adam Renshaw as part of their project to explore the colours and history of the Adoration of the Magi Tapestry which was designed by Edward Burne-Jones and made by William Morris in 1894. When it comes to Manchester Central Library this isn’t HMG’s first engagement with the landmark building as HMG also supplied over 6000 litres of paint for the refurbishment of the library in 2014, including for the iconic Wolfson Reading Room. The decorative coatings produced by HMG and used at the library were the launchpad of a new business area which has seen significant growth since 2014. "It's been a privilege to work with HMG Paints over the past year, recording the extraordinary sounds of their water-based paint machinery and the river itself at their Riverside Works site. These recordings form a vital part of the exhibition's soundscape, connecting the industrial and ecological life of the River Irk,” said Fiona on the exhibition. “I'm particularly grateful to HMG for welcoming me to install and document a durational cyanotype work at the site - a piece that responds to the river's flows, the changing light, and the paint factory's relationship with the waterway. HMG's decades of environmental custodianship of the Irk, including their Waterside Regeneration Award, is an important part of the river's ongoing story that we're celebrating in this exhibition. Their support makes it possible to bring these layered histories - industrial, ecological, and community-based - to public life at Manchester Central Library." A durational cyanotype is an art project using the slow, extended UV light exposure of the cyanotype process to create images that reveal over time, often representing evolving data or natural processes. The cyanotype produced by Fiona at HMG paints will be featured in the exhibition for visitors to see. Visitors will be able to access the exhibition at Manchester Histories Hub located on the lower ground floor of Manchester Central Library.

Aldi Scotland has awarded £2,500 to Gogar Park Young Curlers through its Scottish Sport Fund as part of a special one-off Champion’s Award launched to celebrate Scotland’s qualification for the 2026 FIFA World Cup. Gogar Park Young Curlers will use the funding from Aldi Scotland to invest in essential equipment, including sliding shoes, brushes, coaching aids and team uniforms. This support will help the club provide more inclusive and accessible entry-level opportunities, ensuring that every child has the chance to take part in the sport, regardless of their access to equipment. Mihoko Pooley, member of Gogar Park Young Curlers, said: “This funding from Aldi Scotland will make a huge difference to our club and the young people who take part in our sessions. Curling can be difficult to access without the right equipment, so being able to provide shoes, brushes and uniforms will help us welcome more children and give them the best possible start” Founded in 1979, Gogar Park Young Curlers is a junior curling club based in Edinburgh with around 70 members under the age of 21, mainly from Edinburgh and the Lothians. The club operates weekly Sunday morning sessions at Curl Edinburgh between September and March, supported by volunteer coaches and parent helpers. Young curlers from the club compete in a wide range of internal and national competitions, from Under 12s to Under 21s leagues, travelling across Scotland from Stranraer to Inverness. The club has a strong track record of developing elite talent, with former members Jennifer Dodds and Bruce Mouat going on to win Olympic gold and silver medals at Beijing 2022 and set to represent Team GB again at Milano Cortina 2026. Pooley continued: “With the Winter Olympics coming up in 2026, there is a real buzz around curling just now. This support will help us build on that excitement, grow participation and continue our proud history of developing young curlers.” The Scottish Sport Fund Champion’s Award was introduced as a celebratory extension of Aldi Scotland’s long-running sports funding initiative, recognising a single club that demonstrates a strong commitment to developing young sporting talent. The award aims to harness the national pride sparked by Scotland’s return to the World Cup for the first time in 28 years and invest it back into grassroots sport. Sandy Mitchell, Regional Managing Director, Aldi Scotland, said: “Scotland’s qualification for the 2026 World Cup was a huge moment for the nation, and we wanted to celebrate that success by giving something back through our Scottish Sport Fund." “The Scottish Sport Fund Champion’s Award recognises clubs that go above and beyond to support young people, and Gogar Park Young Curlers is a fantastic example of that commitment. We are proud to support the next generation of sporting champions across Scotland.” Aldi Scotland introduced its Scottish Sport Fund in 2016 to support individuals of all ages and abilities to get involved in physical activity in their local communities. Over the past decade, the retailer has supported more than 650 clubs across Scotland, donating over £500,000 to improve access to sport at a grassroots level.

Marieta Grigorova, who has served as head of Gebrüder Weiss’ Bulgarian operations for 32 years, is retiring. Lyudmil Elshishki, a logistics expert with international experience, is assuming responsibility. After 32 years at the helm of Gebrüder Weiss Bulgaria, Marieta Grigorova (63) is retiring. Her successor, Lyudmil Elshishki (37), assumed the role of Managing Director on January 1. He is already well-prepared for the task, having joined the company several months ago and, during a transition phase, jointly managing the national organization together with Ms. Grigorova, as well as taking on the area management for Albania and North Macedonia. Thomas Moser, Director and Regional Manager Black Sea/CIS at Gebrüder Weiss commented: “Marieta Grigorova has played a pivotal role in shaping the history of Gebrüder Weiss in Bulgaria. Demonstrating vision, courage, and great dedication, she led the company through three decades of dynamic expansion. We would like to thank her sincerely for this.” Grigorova’s career began in 1993 with Gebrüder Weiss’ market entry in Bulgaria. Under her leadership, the company developed into a full-service logistics provider: the Sofia location grew from a small transshipment point for groupage freight from Western Europe, into a central logistics hub for international transport and specialized warehousing solutions. Two additional logistics centers were established in Plovdiv and Varna, and the service portfolio was continuously expanded – today it also includes home delivery for private customers. Gebrüder Weiss is now one of the leading logistics providers in the country, serving well-known customers from the automotive, IT, and consumer goods industries with a workforce of around 160 employees. With Lyudmil Elshishki, an internationally experienced manager is taking over responsibility. The 37-year-old has been active in the logistics industry for more than 15 years, most recently in a management role at a global logistics group. There, he led strategic projects in 14 countries and successfully expanded the retail network. At Gebrüder Weiss, he aims to continue developing the national organization in a stable manner while providing new momentum, particularly in the areas of international transport services and logistics solutions for the automotive and heavy industry sectors. The conditions are favorable: Bulgaria is becoming increasingly important as a hub for transports to the Black Sea region and Central Asia.

Across continents and cultures, family businesses form a quiet yet extraordinary backbone of the global economy. Overshadowed at times by corporate giants with their vast resources and relentless marketing, family-owned enterprises nevertheless carry within them a distinctive blend of purpose, responsibility, kindness and resilience. Whether they are centuries-old manufacturers, neighbourhood grocers or emerging technology innovators, these firms play a far more influential role than their modest public profiles might suggest. Their impact is woven deeply into the social and economic fabric of modern life, and their importance is only increasing. Family businesses matter because they take the long view in an era too often driven by short-term thinking. Publicly listed corporations may be bound to satisfy quarterly market expectations, but family firms tend to see themselves as custodians of something greater than profit alone. Their decisions are made with the next generation in mind, not the next earnings call. This intergenerational approach encourages steady investment in people, communities and ethical practice. Many of the world’s most enduring brands have survived and thrived precisely because they prioritised sustainability over spectacle, continuity over quick wins. Perhaps the most powerful way family enterprises act as a force for good is through their deep commitment to place. Rooted firmly in towns, cities and villages around the world, they often serve as anchor institutions. They provide stable employment, support local supply chains and engage in philanthropic work that is closely aligned with local needs. Their leadership typically resides within the very communities they serve, creating a proximity that fosters accountability and a genuine sense of responsibility. For many regions, a family-run firm is not merely a commercial presence but a source of identity, heritage and pride. The human element at the heart of a family business sets it apart. Values such as trust, loyalty and shared purpose are not marketing slogans but daily lived realities. Employees often describe an atmosphere that feels more like a tight-knit community than a corporate hierarchy. This sense of belonging nurtures morale, reduces turnover and contributes to a dedication to quality that customers instinctively recognise. Innovation thrives in such an environment as well; when people feel secure and respected, they are more willing to explore new ideas and adapt with creativity and confidence. Despite their smaller scale compared with multinational conglomerates, family firms are astonishing engines of economic activity. In many countries they contribute a significant share of GDP and account for the majority of private-sector employment. In emerging markets, they frequently serve as the seeds from which entire industries grow, providing opportunities and infrastructure that enable regional development. In developed economies, they offer stability and continuity, often demonstrating remarkable resilience during economic downturns thanks to their flexible structures and willingness to weather difficulties rather than withdraw. Family businesses also set a powerful example in ethical leadership. With their reputations tied not just to a brand but to a family name, owners tend to hold themselves to exacting moral standards. Customers are not distant abstractions; they are neighbours, friends and members of the same community networks. This closeness naturally fosters transparency, fairness and a genuine commitment to responsible business practice. As consumers around the world increasingly demand authenticity and integrity, family-run enterprises are well placed to meet those expectations, offering a model of capitalism that is effective, principled and profoundly human. In a world facing social inequality, environmental strain and rapid technological change, the role of family businesses has never been more vital. They demonstrate that commercial success can coexist with conscience, that growth need not come at the expense of community and that legacy can be a guiding force, not a constraint. Their stories, rich with perseverance, adaptability and deep-rooted connection, offer a powerful reminder that business is not merely a transaction but a human endeavour. Ultimately, the true strength of family businesses lies not only in their economic contributions but in the values they champion. They show us that prosperity can be patient, leadership can be personal and progress can be guided by principles that endure across generations. In their careful stewardship, business becomes more than a pursuit of profit: it becomes a force capable of shaping a better, more compassionate world.

Leonard Curtis has secured a £15 million refinancing and growth facility for Charles Trent Limited, providing increased working capital and long-term headroom to support continued expansion, investment in innovation and the scaling of its circular-economy operations. Charles Trent has been at the forefront of automotive recycling for 100 years. It is the UK’s largest family-owned vehicle recycler and salvage business, with processing capability of up to 52,000 vehicles per annum and is a recognised leader in the automotive circular economy. The business operates from two principal sites in Poole, Dorset, purpose-built to support high-volume, low-waste vehicle dismantling. ESG considerations are embedded throughout the operation, from building design to production processes and machinery. Solar panels generate on-site renewable energy across its 100,000 sq ft facility, while its newest production building has been independently assessed as delivering materially improved carbon efficiency compared with standard industrial benchmarks, setting a new standard within the UK sector. Charles Trent is also the first UK dismantler to provide verified CO₂ saving certificates across all sales channels, allowing customers to clearly quantify the environmental benefit of reused automotive components. The business’ consistent focus on operational innovation has attracted strong interest from lenders and investors, particularly its lean, repeatable processing model, which is designed to be scalable across multiple locations. Investment in technology, sustainability and production capability remains central to the company’s long-term growth strategy. Led by CEO Marc Trent, the business undertook a strategic review of its banking arrangements to ensure its funding structure aligned with its growth ambitions. While the previous lender had supported the business over many years, the priority was to secure a partner with the appetite and understanding to support the next phase of expansion. The transaction completed a full refinance of the incumbent lender, with challenger business bank Allica Bank providing a three-year revolving credit facility of approximately £15 million. The deal was led by Dave Rushton, Regional Lead at Allica Growth Finance. Marc Trent, CEO of Charles Trent Limited, commented: “This funding marks an important moment for Charles Trent. As we move into our 100th year, we’re proving that a family-owned business can lead the way in scale, sustainability and innovation." “The investment gives us the headroom to accelerate growth, back our people, and continue building world-class circular-economy infrastructure. What matters most to me is working with funding partners who understand not just where we’ve come from, but where we’re going. Allica and Leonard Curtis clearly get that, and this facility puts us in a strong position for the next phase of our journey.” Dave Rushton, Regional Growth Finance Lead at Allica Bank, added: “Charles Trent is a strong example of a long-established business that has successfully evolved through sustained investment, innovation and operational discipline. Marc and the management team have a clear strategy for growth, underpinned by scalable infrastructure and a credible ESG proposition." "We’re pleased to support the business with flexible funding that enables continued investment, while maintaining the stability needed to deliver its long-term plans.” Mike Dinnell of Leonard Curtis provided debt advisory support. Commenting on the transaction, he said: “We’re pleased to have supported the refinancing and secured growth capital for the business. Significant investment has been made in production facilities, technology and innovation, delivering benefits not only to Charles Trent but across the wider automotive supply chain." "The business has the capability to drive meaningful change in the UK and European automotive circular economy, and we look forward to working alongside Allica Bank as those plans are delivered.” The management team comprises Marc Trent, Neil Trent, Alison Hopkins, Martin Scott and James Bawa, who will lead the business through its next phase of growth. Tim Stone, Craig Hardman and Martin Logan of Steele Raymond advised Charles Trent Limited, while Edward Sundeland, Partner at Pinsent Masons, advised Allica Bank.

JCB has secured a massive deal to supply the United States armed forces with more than 500 machines in a deal worth up to $205 million, the company announced. The contract for 535 militarised versions of JCB’s 437HT wheeled loader has been secured with the United States Marine Corps (USMC) and will be supplied over the next decade. The contract is the third to be signed by the USMC, which five months ago placed a $45 million order for a militarised version of JCB’s 4CX backhoe loader. That followed a $39 million deal in 2024 for Multi Terrain Loaders, a militarised version of the JCB Teleskid compact tracked loader. Chris Giorgianni, Vice President of JCB Government & Defense said: “We are delighted to have secured our third contract in a row from the U.S. Marine Corps as it is testament to the reliability, robustness and suitability of JCB machines in military applications worldwide.” JCB will supply a number of test machines to the USMC later this year and it is anticpated that full production will begin in 2027. This latest contract with the USMC, which was secured after an extensive evaluation period, is part of JCB’s long-standing support of defence organisations around the world. JCB’s defence business has grown significantly over the last decade with almost 10,000 machines sold to militaries around the world. JCB has been awarded the latest defence contract as part of the Tractor, Rubber Tired, Articulated-Steering Multi-Purpose (TRAM) vehicle programme.

Denholm Good Logistics Limited, an award-winning 3PL provider of end-to-end supply chain services, is proud to announce that it has been named Sea Freight Forwarder of the Year at the 2025 British International Freight Association (BIFA) Awards. This marks the second year running that the business has received this prestigious industry accolade. The BIFA Awards recognise excellence, innovation and best practice across the freight forwarding and logistics sector. Being recognised for a second consecutive year highlights the strength of Denholm Good Logistics’ people, solutions and customer partnerships, as well as its ongoing commitment to delivering high-quality, bespoke services. Alan Platt, Divisional Managing Director of the Denholm Logistics Group, and Paul Ferguson, Managing Director of Denholm Good Logistics, attended the awards ceremony on behalf of the business. The event provided an opportunity to connect with peers from across the industry and celebrate the high standards achieved throughout the sector. This year’s award submission focused on the scalable, tailored sea freight solutions delivered for a key customer as their business continues to evolve and grow. These solutions included dual sea freight strategies to manage urgent and non-urgent cargo, the innovative use of vessels as ‘floating warehouses’, named account allocations combined with spot market optimisation, and rail-based inland transport solutions designed to mitigate port congestion while significantly reducing carbon emissions. Leadership Statements Paul Ferguson, Managing Director of Denholm Good Logistics, said: “We are honoured to be named for the second year, Sea Freight Forwarder of the Year. A massive shout out to our dedicated Control Tower team and our dedicated Account Manager Danny Price for their exceptional work in designing integrated, end-to-end solutions that deliver real value and create a strong partnership that continues to evolve. It is a privilege to be recognised alongside such strong competition in our industry.” Alan Platt, Divisional Managing Director of the Denholm Logistics Group, added: “Another wonderful achievement from the DGL team, demonstrating our ability to be able to listen to our customers in order to deliver bespoke solutions to meet their needs. It is always a privilege to receive such awards. We value our customers hugely and also our colleagues in helping us to perform consistently and go the extra mile.” Continued Focus on Partnership and Innovation Denholm Good Logistics continues to invest in people, technology and sustainable transport solutions to support customers operating in complex and time-critical supply chains. This latest award reinforces the company’s position as a trusted 3PL supply chain partner capable of delivering flexible, forward-thinking sea freight solutions. Photo: Left to Right James Watt, MD of Port Express (Sponsor) Paul Ferguson, MD of Denholm Good Logistics (Winner) Steve Backshall, Naturalist and Explorer (Event Host)

In family enterprises, success is often described in terms of legacy, long-term stewardship and shared identity. But beneath these ideals lies a day-to-day reality that is far more complex: the constant balancing act required of family members who are also shareholders, and in some cases employees, directors or informal advisers. The ability to juggle these roles, sometimes gracefully, sometimes awkwardly, is one of the least discussed yet most critical skills in family business life. In a typical company, roles are clearly defined. A manager manages, a shareholder invests, a board member governs. In a family firm, however, the same person may occupy all three positions simultaneously, and the boundaries between them can blur without anyone quite noticing. The father who is also managing director expects loyalty as both parent and leader. The daughter who is marketing manager must consider how her decisions affect her siblings at the shareholder table. The cousin living abroad may hold equity but not employment, challenging decisions without the benefit of daily involvement. These overlapping identities can be a strength, but only when handled with care. The Family Hat: Where Emotion Meets Identity When family members step into the business, they never leave their relationships at the door. The emotional bonds that define the family unit shape expectations, communication patterns and even conflict. Conversations that begin as strategic discussions can slide quickly into long-held family grievances or rivalries. Conversely, family loyalty can encourage remarkable commitment and resilience, helping firms weather difficult periods that might topple a non-family enterprise. Yet the family hat also carries risk. It can create entitlement, resistance to change or unrealistic expectations of inclusion. It may blur meritocratic principles or discourage accountability. The challenge lies in recognising when family identity should guide decisions, and when it should give way to the needs of the business. The Ownership Hat: Stewardship, Rights and Responsibility As shareholders, family members have distinct roles and responsibilities that differ from their emotional ties. The ownership hat concerns itself with longer-term issues: preservation of wealth, capital allocation, dividend policy and the protection of family legacy. This hat requires a mindset rooted in stewardship rather than sentiment. Shareholders need to understand financial performance, risk tolerance and strategic direction. They must advocate for transparency, good governance and responsible management. For some family members, particularly those not active in the business, wearing this hat can be challenging. They may feel distant or under-informed, leading to frustration or suspicion if communication falters. Equally, those working inside the firm may forget that shareholders—family or not—have legitimate questions and rights. The art lies in ensuring all voices are heard without allowing ownership to be mistaken for operational authority. The Employee or Manager Hat: Professional Competence Over Bloodlines For family members who work in the business, perhaps the most delicate hat of all is the employee or managerial one. Here, competence must matter more than lineage. Effective family firms insist that working family members perform to the same, if not higher, standards as non-family colleagues. Wearing this hat means accepting accountability, respecting hierarchy and making decisions based on organisational needs. It also requires humility: an awareness that family status does not automatically confer expertise. The tension arises when employees who are also shareholders must challenge decisions made by other family members, or when their dual identity leads colleagues to question their objectivity. Professional leadership in a family firm demands an acute awareness of how much weight each hat should carry in a given moment—and when one should be set aside. Why Mastering the Hat-Juggling Act Matters The ability to navigate these various roles is not merely a personal skill; it is foundational to the stability and longevity of the enterprise. When individuals fail to distinguish between hats, several problems typically arise. Conflicts become personalised rather than professional. A disagreement over investment strategy is interpreted as sibling rivalry. A performance review sounds like a parental critique. Decisions that should be made with shareholder logic become clouded by family loyalty or frustration. On the other hand, when family members consciously shift between their hats, conversations become clearer and more productive. Decisions become more transparent and defensible. Expectations are set and understood. The business benefits from healthy challenge, robust governance and professional discipline, while the family benefits from stronger relationships and fewer misunderstandings. Creating Structures That Support the Balancing Act No one should be expected to master this delicate juggling unaided. Strong family firms create systems and forums to help their members navigate the complexity of their roles. Family councils offer a place to discuss family issues separately from business topics, reducing the risk of emotional spill-over into board meetings. Shareholder assemblies or educational programmes ensure all family owners—particularly those outside the business—understand performance metrics and strategic decisions. Clear governance documents such as family constitutions codify expectations, role definitions and decision-making processes. Meanwhile, boards staffed with independent directors bring an invaluable outside perspective, ensuring that the business is not governed by family dynamics alone. They also help reinforce professional standards and create boundaries that protect both the enterprise and the relationships underpinning it. The Human Advantage: When Multiple Hats Become a Strength Despite the inherent complexity, the ability to wear multiple hats can be a powerful asset. Family members bring a depth of commitment and a sense of purpose that is difficult to replicate in non-family-owned firms. Their varied perspectives—as relatives, owners and often employees—offer a holistic understanding of the business and a multi-layered loyalty to its success. When family members consciously and skilfully switch between their roles, they strengthen governance, reinforce shared values and build a culture that prioritises long-term continuity. They also create an environment in which governance is not imposed from above but lived and practised from within. A Skill Worth Honing In family businesses, the importance of role-juggling is often underestimated. Yet it is this very skill—knowing which hat to wear, and when—that differentiates thriving family enterprises from those that falter under the weight of their own complexity. Mastering this art enables conversations to stay productive, decisions to remain principled and family relationships to stay intact. It preserves not only the health of the business, but the harmony of the family itself. In essence, juggling hats is not a burden to be endured but a craft to be cultivated. For family businesses aiming to thrive across generations, it may well be the most valuable skill of all.

The UK private sector was buoyed by a sharp expansion in output among mid-market businesses at the end of 2025, which has helped to fuel optimism for 2026, the latest NatWest UK Business Growth Tracker data revealed. Planned recruitment, stronger sales pipelines and expectations that the UK economy will pick up were reportedly behind firms' upbeat forecasts. The data reflects figures published by the Office for National Statistics last week which showed that the UK economy recorded growth of 0.3% in November – with the improvement in output led by the services sector. NatWest’s Tracker – which is based on the Purchasing Managers’ Index and surveyed mid-market businesses operating in the manufacturing and services sectors – rose to 55.3 in December, up from 54.3 in November. Any reading above 50.0 signals growth, and the further above the 50.0 threshold the faster the rate of growth signalled. NatWest’s tracker found the upturn in mid-market was broad-based across the manufacturing (index: 51.1) and service sectors (index: 56.0) in December, though the latter was the growth engine. Mid-market firms principally linked higher activity to improved order numbers, with some mentions of increased workloads due to the launch of new products and services and an influx of new customers. In contrast, UK small and medium-sized enterprises (SMEs) continued to experience challenging business conditions in the closing months of 2025. SMEs reported that heightened economic uncertainty, exacerbated by the late November Budget, contributed to them delaying decisions around new business and hiring. Cutbacks to employment numbers at SMEs persisted in December, which extended the current period of job losses to 15 months. Increased wage burdens, as well as higher fuel and food costs, also exerted pressure on firms margins in December. The overall rate of input price inflation was the fastest since last April. In response, businesses sought to alleviate margin pressures by raising their prices – which led to the strongest rise in output charges for five months among SMEs, and for four months among mid-market businesses. Sebastian Burnside, NatWest’s Chief Economist, said: “The latest data reveals business owners are heading into 2026 with greater certainty, hopeful that market confidence will improve and optimistic that will lead to stronger inflows of work this year." “Mid-market businesses are feeling notably brighter about their prospects than they were at the end of 2024. Growth in the private sector continues to hinge on their performance, and they closed the year with a strong surge in sales. These businesses scale and agility meant they were able to maintain solid momentum, despite the uncertainty raised by a late November Budget." “SMEs are positive about the year ahead but continue to find the business environment challenging. Many pointed to the Budget as a factor which delayed decision-making among their customers and led to reduced demand. Costs – particularly for staff and raw materials - remain elevated, but there is reason to hope that inflation will fall over the course of the year and reduce this burden.” Andy Gray, Managing Director of Commercial Mid-Market at NatWest, said: “This data shows that mid-market businesses are a powerful engine of the UK economy, and an important source of economic growth. NatWest’s Critical Middle research found that just 1% growth in this segment could add £35 billion in gross value add to the UK economy by 2030. That’s why we established the Mid-Market Growth Council last year, supported by the UK government. With the one-year anniversary of the Council fast approaching, we continue to work with business and industry leaders to advocate for tailored support to unlock the full potential of these businesses.” New orders rise at mid-market firms, but fall at SMEs December survey data signalled a further rise in new business placed at mid-market companies, confirming a full quarter of growth. However, the latest data indicated another decrease in total new orders received by SMEs, which continued the trend seen since December 2024. That said, the rate of contraction moderated since November and remained much less marked than on average in the first half of 2025. Lower employment for businesses of all sizes Cutbacks to employment numbers at SMEs persisted in December, which extended the current period of job losses to 15 months. The rate of job cuts was softer than in November, however. Although mid-market businesses made further reductions to their staffing numbers in December, the rate of contraction was only modest overall and eased since November. Inflationary pressures intensify across the board Average cost burdens faced by SMEs increased at a sharp and accelerated pace in December. Here, the rate of input price inflation was the fastest since last April. Across the mid-market, average input costs continued to increase at a substantial rate at the end of 2025. The rate of inflation picked up to a seven-month high. Efforts to alleviate squeezed margins led to the strongest rise in SME output charges for five months, while mid-market firms increased their selling prices to the greatest extent since last August. Business expectations improve for 2026 SMEs indicated positive expectations for business activity over the course of 2026. While confidence levels improved across the manufacturing and construction sectors, service providers indicated that business optimism slipped to an eight-month low in December. Meanwhile, the level of confidence across the mid-market improved from November, pushing further above the UK-wide trend, but still below October's one-year high.