Why our region can flourish in 2026 – Chamber chief  

As we look to the year ahead, there are good reasons to feel optimistic about Birmingham and the wider city-region, writes Raj Kandola.

Ours is a place that has never been short on resilience or ambition, and that spirit remains very much alive as we prepare to face the challenges and opportunities that 2026 present.

One of the most visible signs of that confidence is the city’s continuing run of major international sporting events.

This summer, the European Athletics Championships will come to Birmingham, returning elite sport to the redeveloped Alexander Stadium.

Events of this scale do more than put us on the global stage for a few weeks. They bring visitors, boost local supply chains and reinforce Birmingham’s reputation as a city that can deliver world-class experiences.

Beyond sport, the fundamentals of our economy remain strong. Our 2025 Birmingham Economic Review, published in November, highlighted genuine golden opportunities for the city-region.

Tourism continues to grow, driven by culture, conferences and major events, while Birmingham’s strengths in emerging industries such as artificial intelligence, clean energy and life sciences give us a powerful platform for long-term growth.

These are sectors that attract investment, create high-value jobs and align with the future direction of the UK economy.

Yet optimism must be tempered with realism. Businesses are tired. The last two major fiscal events from Government, including the Autumn Budget in November, have not created the conditions firms need to invest with confidence.

Inflation may be easing, but business confidence remains fragile. Many companies are still operating under enormous cost pressures, from energy and finance to labour and compliance.

As we move into the New Year, firms need to see meaningful action on planning reform, smarter regulation, skills development and a pragmatic reset in the UK’s relationship with the EU if we are serious about unlocking sustainable economic growth.

Alongside this, employers are preparing to navigate significant legislative change.

The Employment Rights Bill, passed in December, has the potential to improve security and fairness for employees, which is something businesses broadly support.

However, implementation will be crucial. If handled poorly, it risks adding further cost and complexity at a time when margins are already thin. If handled well, it can help create a more stable, productive workforce while sustaining a competitive and confident local economy.

What our members are telling us, loudly and consistently, is that Government needs a laser focus on improving conditions for business as we head towards 2026.

For many, 2025 was an exceptionally difficult trading year. A raised tax burden and the introduction of additional costs squeezed cashflow and curtailed investment plans.

Now is the moment for ministers to properly back business with a clear growth mindset and a coherent set of policies that help companies succeed, rather than simply survive.

Business success underpins not only UK PLC but also the creation of quality jobs across our communities.

That will be especially important next year given the challenging employment landscape. Nowhere is this clearer than in the food and drink sector.

Ongoing high costs of doing business are driving food inflation, leaving firms with little choice but to pass costs on to ordinary shoppers.

A reduction in costs, or at least a more fertile investment environment, would benefit businesses and households alike.

Through all of this, one thing remains clear - businesses are stronger when they act collectively.

That is where the Chamber of Commerce plays a vital role. Through initiatives such as our Business Growth Studio and wider support services, we help firms access advice, networks, peer support and opportunities that enable them to innovate, overcome challenges and seize new ones.

As we look to 2026, collaboration, confidence and collective action will be key. Greater Birmingham has all three in abundance.

Raj Kandola is acting deputy CEO of Greater Birmingham Chambers of Commerce

This column first appeared in the Birmingham Post