Activity in UK’s embattled manufacturing sector hits 15-month high

The UK’s embattled manufacturing sector took another small step towards recovery at the end of 2025 thanks to an influx of new orders.

The latest UK Manufacturing Purchasing Managers’ Index (PMI) from S&P Global UK hit a 15-month high as the industry continued to grow for the second consecutive month.

The PMI reading hit 50.6, up from 50.2 in November but below the previous flash estimate of 51.2.

Still, both readings remained above the all-important 50 mark, which indicates whether a sector is growing.

Confidence rose in December, driven by improving operating conditions: output and new orders rose, and suppliers’ delivery times lengthened.

But this was slightly offset by declines in stock purchases and employment, albeit to a lesser extent than in November.

“UK manufacturers benefited from several reduced headwinds towards the end of the year, as the negative impacts of the uncertainty surrounding the Autumn Budget, tariffs and the JLR cyber-attack all moderated,” Rob Dobson, director at S&P Global Market Intelligence, said.

Manufacturers sounded the alarm ahead of Rachel Reeves’ second Autumn Budget, warning the industry faced a make-or-break moment as tax speculation ran rife.

Make UK – the sector’s industry body – warned of an “existential threat” to the survival of many companies due to the rising price of industrial electricity prices.

The industry was also devastated by the cyber attack on Jaguar Land Rover, which forced the firm to halt car production.

The attack is estimated to have cost the UK around £1.9bn, with research from the Cyber Monitoring Centre (CMC), a non-profit group that tracks major cyber incidents, revealing that nearly 5,000 organisations were caught in the fallout.

The restart of production and the avoidance of major tax raids handed the sector a major boost, helping supercharge supply chains across the country.

“The start of 2026 will show if growth can be sustained after these temporary boosts subside,” Dobson said.

Manufacturers’ confidence takes hit

The UK’s domestic market powered manufacturing growth, with intakes of new work from overseas falling for the 47th successive month in December.

But Dobson warned that for continued growth, the “base of expansion needs to shift more towards rising demand and away from inventory building and backlog clearance”.

Despite the positive headline uplift, manufacturers surveyed in the PMI expressed nervousness for the year ahead.

Business optimism fell for the first time in three months in December, with manufacturing employment decreasing – at a slightly slower rate – for the fourteenth month running.

“Manufacturers reported they remain concerned about high costs, increased taxation, reduced international competitiveness, geopolitical uncertainty and the possible impact of Government policy,” the PMI said.

Make UK has warned of the consequences of the government’s Employment Rights Bill and inheritance tax raid on family firms on the industry.

Over the last few months, Labour has made significant U-turns on both policies, with a concession on day one rights following the Employment Rights Bill ping-ponging between the Lords and the Commons.

In late December, Labour handed farmers an early Christmas after increasing the Agricultural and Business Property Reliefs threshold to £2.5m from £1m.

FTSE 100 hits 10,000 mark after Rolls-Royce and Fresnillo rally

The FTSE 100 crossed the long-awaited 10,000 mark as markets opened on Friday for the first day of trading in 2026.

London’s blue-chip index climbed 0.7 per cent early on in the session to 10,003.68 after finishing its final day of 2025 just over 0.5 per cent away from the milestone.

“It’s time to break out the champagne as UK stock markets have delivered a New Year’s treat,” Dan Coatsworth, head of markets at AJ Bell., said.

The index was boosted by rallies across a series of heavyweights. Gold miner Fresnillo, which was the best blue-chip performer of 2025 with a rally of over 400 per cent, topped the risers with its valuation rising nearly four per cent.

Meanwhile, FTSE darling Rolls-Royce jumped some 3.5 per cent to 1,190p.

Luxury fashion label Burberry also edged up roughly two per cent, whilst the world’s largest sports betting firm Entain climbed as much as 2.6 per cent.

Of the fallers, British American Tobacco slumped over two per cent to 4,127p, whilst Smith and Nephew and British Land edged slightly down on soft house price data published on Friday morning, with losses of under one per cent.

FTSE 100 sealed 41 record closes in 2025

The FTSE 100 closed 2025 at 9,923.06, with a rise of over 20 per cent. The index closed on record highs on 41 different trading sessions throughout the year.

“So much for the UK being the home for old economy companies – the FTSE 100 has had precisely the ingredients desired by investors in a year full of political, trade and market uncertainty,” said Coatsworth.

But despite a glowing year for UK equities, not all shares enjoyed the rally.

Coatsworth said it is “somewhat ironic” that the country’s leading stock exchange operator was one of the FTSE 100’s worst performers in a “fantastic year” for UK shares.

Despite a minor spurt in December, the London Stock Exchange Group (LSEG) has tumbled 22 per cent over the last 12 months.

Advertising giant WPP has suffered a significant downturn after being forced to slash its outlook amid rising competition.

The firm’s stock fell by nearly 60 per cent in 2025 and was demoted from the FTSE 100 in December’s reshuffle.

Housing market ended 2025 on ‘softer note’ after ‘resilient’ year

The UK housing market rounded off 2025 on a softer note after remaining “resilient” through a volatile year, according to Nationwide’s latest house price index.

Annual house price growth slowed to 0.6 per cent in December from 1.8 per cent in November, with a 0.4 per cent fall in prices.

This took the average UK house price to £271,068 in December.

A Royal Institution of Chartered Surveyors in November showed property tax rumours and the hit to household income in the Autumn Budget had dented buyer sentiment.

Several possible tax hikes related to property were floated ahead of the Budget, before the Chancellor pushed ahead with a “high-value council tax surcharge” on all properties valued at over £2m, expected to raise £400m.

In December, it was revealed the UK’s average property tax burden as a proportion of intake amounted to 10.5 per cent while the OECD average was just 5.1 per cent, making it the fourth heaviest in the OECD’s list of 38 countries.

‘Resilient best housing market descriptor’

Robert Gardner, Nationwide’s chief economist, said: “Despite the softer end to the year, the word that best describes the housing market in 2025 overall is ‘resilient’.

He added: “Stamp duty changes that took effect at the beginning of April created volatility through the spring and summer.

“Activity spiked in March as purchasers brought forward transactions to avoid paying additional tax and this led to some softness in the following months.”

From April 2025, Rachel Reeves’ changes in her first Autumn Budget to increase the higher rate on second homes to five per cent from three per cent came into effect, leading to a surge in transactions ahead of the deadline as Brits rushed to beat the tax raid.

Alex Kerr, UK economist at Capital Economics, pointed to a combination of still-high mortgage rates and weak employment as triggering December’s 0.4 per cent decline in house prices.

This comes despite some relief for mortgage holders this year with the Bank of England chopping interest rates to a three-year low.

Capital Economics is pencilling in rates falling to three per cent, in a major boost for mortgages.

Kerr said this, alongside solid earnings growth, would help house price growth accelerate to 3.5 per cent in quarter four of 2026 and three per cent in 2027.

“That would be stronger than the consensus forecast for house price growth to average 2.5 per cent in 2026-27,” he said.

Prem to Champ to sevens: Four rugby business stories to follow in 2026

How do I feel about rugby in 2026? I am not too sure. We were supposed to have the launch of Ultimate Sevens and R360 but one of those has been mothballed until 2027, we were supposed to have an exciting promotion race in the Champ but ring fencing may stop that, and we’re still not sure whether loss-making Prem clubs will live to see the end of the decade.

With that in mind, here are my rugby business stories to watch out for in 2026.

Sevens rugby heaven

I, for obvious reasons, am very excited to see how the proposed Ultimate Sevens project goes. It is supposed to launch later this year and the group behind it – Sunderland owners Bia Sports Group – recently confirmed that they had 120 players signed up.

What they’ve done, which R360 couldn’t do, however, is name some of them – suggesting they’re closer to launching than the 15s equivalent ever was.

Players include sevens star of the year Madi Levi, Australia captains Henry Hutchison and Bella Nasser, Lucas Lacamp, Pol Pla, and Abbie Brown.

The entry level to buy a franchise is reported to be in the seven-figure range, and could see returns delivered in a few short years.

It will be fascinating to see how it turns out, where they play and whether they can leverage sevens’ Olympics connections to entice the likes of Ilona Maher and Antoine Dupont.

Prem investment via ring fence?

It looked as though Prem Rugby turned a corner in 2025 when Red Bull invested into Newcastle, and 2026 could be the year other investors follow.

We know that Liverpool investors Fenway Sports Group and Manchester United’s Glazer family have each been monitoring the situation, and Deloitte and Raine Group have been appointed to take a look at the viability of external investment.

It sounds great on the surface but clubs are struggling and owners seem reluctant to continue to pump in millions; losses are continuing across the league and other leagues in other sports are offering better returns.

And that means Prem Rugby clubs are looking at ring fencing and subsequent franchising. This is controversial and how it plays out could decide the fate of the game not only for Prem Rugby and England’s national team, but the entire pyramid below the top flight.

Sink or swim rugby Nations Championship

It is a huge year for international rugby, with the scrapping of summer and autumn internationals and the introduction of the Nations Championship.

It’ll see the international windows maintained but with trophies to win every two years – putting silverware on the line is part of a push to take rugby to the Middle East and United States.

But there are concerns over whether fresh, new partners want to invest in the project for the long-term, and the fact that Fiji won’t play their home games at home – they’re hosting England in South Africa.

On a positive note ITV have taken the rights for this – worth a reported bid of £80m – meaning all England internationals between now and 2029 will be on free-to-air television. 

Champ divorce?

City AM reported over the festive period that the Champ Rugby clubs could seek a divorce payment should they be forced away from Prem promotion due to franchising and ring fencing.

And it follows further reporting relating to Cornish Pirates saying they would “bang the door down” to reach the English top flight.

It appears that 2026 could be the year the Prem vs Champ battle comes to a head, and that could make or break the English pyramid.

On the other hand, the Champ simply needs to find itself better television exposure – even if that means taking a smaller payment from a broadcaster – and a title sponsor. It will struggle to fight alone without these partners on board.

So there we have it, four stories to watch out for over the next 12 months. Happy New Year!

Former England Sevens captain Ollie Phillips is the founder of Optimist Performance and is rowing the Atlantic to raise money for MND charities. Donate and follow at World’s Toughest Row

Labour ‘quietly hammering’ workers as pensioners benefit, think tank warns

The Labour government is “quietly hammering” workers following the Autumn Budget’s stealth tax raid while pensioners and those on benefits are set to enjoy a jump in income, a think tank has said.

In the November Budget, Rachel Reeves extended the freeze on income tax thresholds until 2031 – a move which is viewed as a discrete tax grab as it quietly drags more Brits into higher tax bands as wages increase.

The Office for Budget Responsibility confirmed that the move would raise £8bn a year by 2029, and would drive 780,000 more people into paying the basic rate of income tax, 920,000 more into the higher rate, and 4,000 into the additional rate by the end of the parliament.

But the Centre for Policy Studies (CPS) has said the changes will result in “many workers being worse off by 2030 than they are today, in contrast to those who receive their income from the state”.

The CPS found Brits earning £50,000 today would be £505 worse off in real-terms by 2030-31, even as their salary is set to increase by more than £6,000.

“This is fiscal drag in action, raising taxes for millions of workers through the back door,” Daniel Herring, CPS head of economic and fiscal policy, said.

“Labour’s tax policy is quietly hammering workers while protecting pensioners and benefit recipients.”

Pensioners and benefit claimants set to benefit

The CPS said there’s a “rather sunnier” picture for those receiving state payments.

Guaranteed pension increases in line with inflation, earnings or 2.5 per cent through the triple lock, meaning a pensioner could expect to be at least £306 better off in real terms in 2030-31 than in 2025-26.

This could climb even further to £537, if Reeves follows assumptions in exempting those on state pension from paying income tax even once the payment crosses the personal allowance threshold.

Meanwhile, the CPS said OBR inflation and wage growth forecasts suggest the standard rate of universal credit would place someone on out-of-work benefits £290 better off at the end of the decade.

The report also said that over the next five years, welfare spending will rise by £73.2bn to £406.2bn, with an extra £34bn due to the triple lock.

Budget debacle

When Reeves stood up to present her Budget in November, she asked “everyone to make a contribution,” but she has since received criticism over allegations that she had misled the British public.

Rogue briefings in November, ahead of the Budget, suggested the Chancellor was staring down a near-£30 bn black hole after a productivity downgrade from the OBR.

However, a letter later published by the OBR revealed that as of 31 October, the Chancellor had maintained a fiscal buffer of £4.2bn, despite the productivity downgrade forecast.

This meant Rachel Reeves’ £26bn tax grab in the Budget was used to fill gaps left by Labour’s U-turn on welfare reforms in the Summer and to cover a new spending splurge on the lifting of the two-child benefit cap.

Conservative leader Kemi Badenoch said it was a “Budget for benefits street” as she took aim at Reeves’ “tax and spend” agenda.

I tried a different alcohol free drink every day of Dry January

Pubs are tired of the idea that the annual event needs to be miserable; one venue is even throwing a ‘death to Dry January’ party to show that alcohol free can be fun.

But there’s another movement too: producers are more keen than ever to express how their liquids taste better than ever. No longer is alcohol free just about mimicking booze; new products are showing there are whole new flavour profiles to explore.

More and more Brits continue to reduce their drinking as the health benefits become more widely understood and the idea of alcohol free becomes more culturally accepted.

To celebrate some of these new products, our Deputy Life&Style Editor is trying a different alcohol free drink every day throughout January. Here he writes his (honest) feelings about each drink, with the list being updated every day this month. Happy Dry January!

31 ways to go alcohol free but still have a great drink

1 January: Adnams Ghost Ship Pale Ale

A solid pale ale. This drink has a decent crisp finish, and is light and tasty. As ever with alcohol free beer, you could do with more body to the liquid, but this Pale has a pretty grown-up palette. I could see myself cracking through three of these before I got bored.

2 January: New London Light Aegean Sky aperitif

Really citrus-forward and with a huge, bright bouquet of floral notes. Orange, sage, habanero and ginger “open a door into new flavour,” says the bottle. This drink is best thought of as an interesting new liquid rather than a replacement for gin. The brand suggests this’d go well with a light tonic. The power of citrus to replace that alcoholic kick!

3 January: Gordon’s Premium Pink

Fizzy sweets on the nose with the sweetness carrying through to the tongue, this Gordon’s pink gin replacement won’t convince hardened drinkers if they’re looking to trick their minds into thinking they’re drinking the harder stuff. It’ll also put off anyone who doesn’t like the thought of a Haribo Tangfastic on their tongue. But fans of the alcoholic Gordon’s pink gin aren’t likely to mind that.

4 January: Tanqueray

This has a much drier flavour and is very juniper-forward, providing more of that kick you’d get from a boozy gin. I can imagine it being great with a decent tonic and a fairly large wedge of lemon. Not as complex as some of the indie brands, but a decent effort nonetheless.

5 January: Tanqueray Sevilla

Flavoured gins are naturally divisive; purists would say a good gin would have the botanicals required within it rather than needing one brash flavour to come forward. Like in the alcoholic version, the main thing here is the sevilla orange, which dominates the palette, and colour, of this liquid. That naturally has a bitterness, and there’s a fairly decent botanical body, though alcohol free connoisseurs will tire quickly.

6 January: Lyre’s American malt

A triumph! If, like me, you’ve spent far too long drinking the wonky stuff, this whisky replacement has the fire and fury of the real thing. A minute after my last sip it felt like the ethanol on the back of my throat could ignite. This drink has body and complexity and a moreish caramel-forward flavour that I’d return to. This’d sort me out after a long day in the office. Great stuff.

7 January: The Pathfinder Hemp & Root

10/10 to The Pathfinder for their bottle design. We need more alcohol free drinks with solid wooden tops (very luxe). This feels like opening an expensive bottle of booze. I also like the Pathfinders brand messaging; the bottle reads “Immediate relief for malaise and ennui, cold feet and hot tempers, weak knees and low spirits.” A strong start. With distilled hemp, you can feel a sense of calm (let’s call it that) after drinking. It’s one of a cohort of ‘mood enhancing’ drinks that suggests we can find the effects of alcohol without needing to drink booze. This is particularly sweet, but ginger, sage and saffron disrupt the cane sugar to create something like harmony. It isn’t quite harmony, but it’s close to it. A great effort.

8: January: Captain Morgan’s Spiced Gold

The nose and taste of this alcohol free version is pretty close to the alcoholic original. Captain Morgan’s has a nicely light sweetness that is rectified here. It’s not easy to note specific flavour profiles, but then again, who really ever does that when they drink Captain Morgan’s? It just tastes like Captain Morgan’s and that’s what you want: Out of the major brands, this is the best one so far.

9 January: Smiling Wolf Functional Aperitivo

“A wolf in aperitivo’s clothing” is an amazing way to sell this alcohol free aperitivo because it is absolutely giving the energy of a dominant wild animal. Hugely satisfying, this has the lip-smack and boldly bitter orange notes of any full-strength aperitivo. Bellissimo!

10 January: Tea Saaicho Darjeeling

Tea is absolutely the ingredient we should be using more of in alcohol free drinks moving forward. High quality tea leaves like the ones procured by Saicho, in this case grown in the foothills of the Himalayas, have a naturally dry complexity that just sings as an alcohol alternative. There’s the tannic quality (tea has tannins like red wine) and a sweetness that is never cloying. A brilliant product and a sign of what’s to come more broadly from across the industry.

11 January: Sandford’s Orchards Red Zero

This has the pleasant tang of apple you’ll recognise from the original Sandford’s cider, and tastes like the sort of thing you could sink five or six of over a long summer’s night. I’m a big fan of Sandford’s alcoholic products and this is an encouraging sign of how the cider market is thoughtfully evolving alongside the non-alc movement.

12 January: Bolle Rose

Congratulations to Bolle for somehow getting the rights to ‘bolle’, the term du jour of the Ab Fab ladies and an abbrevation of Bollinger, the lauded champagne brand. It’s a fun kick-off point to this red-berry-forward rose that’ll put off fans of a drier fizz. If you’re into strawberry and red fruits, here’s a decent bouquet that’s veering very much towards the sweet side of things.

13 January: Lyre’s Classico

This is a lovely bottle of fizz. Very fruit forward, with elderflower and grape on the nose and tongue, it has a champagne-consistency to its bubbles that makes this bottle totally luxurious to drink. A proper celebration drink – and one of the best alcohol free fizzes.

14 January: Not Guilty Pinot Grigio

Wine is the hardest alcoholic product to make alcohol free and also taste great. This white takes like a fermented drink like kombucha, with a similar fizzy tartness. Let’s be clear: this isn’t going to serve you a glass of pinot grigio like you’d expect. It is more a pleasantly tart white liquid that shows our alcohol free repertoire is far more interesting than just mimicking booze. But is it white wine? Hmm. Maybe, but just a little bit.

15 January: Spencer Matthews’ Clean Co Smoother Caramel, Apricot & Vanilla Rum

Spencer Matthews was relatively early to the alcohol free party when he launched Clean Co in 2019. This rum replacement has aged remarkably well given the industry has come on such a long way since then. It has a long-last to the mouthfeel, with a nice burn on the back of the mouth that gives a pleasingly spicy finish. The apricot isn’t cloyingly sweet. This is a grown up drink and would be great with a lighter mixer like a tonic.

16 January – Guinness 0.0

This is controversial: I don’t think the Guinness 0.0 is quite as good as everyone makes it out to be. I can sink a couple and have a pretty nice time doing so, and it does have that bitter Guinnessy vibe, but this doesn’t convincingly trick my mind into thinking I’ve had alcohol in the way other stouts do. It’s good that Guinness 0.0 is (very) occasionally on tap, though.

17 January – Nirvana IPA

A very decent pale ale. The liquid loses its fizziness quickly when poured, so be careful to pour gently, but other than that, this has a weightiness to the body the brand describes as “resinous”, which seems about right. My editor – firmly on the sauce – was convinced this was proper poison: surely the ultimate sign of success.

18 January – Mash Gang Stout

Mash Gang promotes the ‘fuck the system’ narrative popular particularly with beer brewers. Their products come emblazoned with the slogan “contains liquid rebellion”. I’m convinced that means absolutely nothing, though the rise of stouts taking Guinness on is exciting. This combination chocolate and cherries won’t be for everyone, and certainly not for devoted stout drinkers: it’s a little sickly-sweet and the taste lingers.

19 January – Nirvana Brewery Stout

Another stout taking Guinness 0.0 on, this Nirvana Brewery attempt goes completely the other way: it’s incredibly bitter, but I quite like the intensity of the hops here. It’s got a tasty biscuit note too, another layer of savoury to add a little more complexity. It’s not an easy drinker, but it’s interesting for a one-and-done.

20 – Almave Blue Agave Spirit

Almave – backed by Lewis Hamilton – doesn’t claim to be tequila, though it is made with the agave plant used in tequila harvested and distilled in Mexico. This absolutely isn’t tequila – but it does have a nicely warm and fiery mouthfeel after you drink, and an interesting sweetness of flavour that isn’t a million miles from the spirit that inspired it. You struggle to think how you’d drink it, but it’d probably go nicely over a light tonic or with a soda water and lime.

21 – Impossibrew Lager

This can markets itself as a “social blend,” though the brand keeps the messaging vague over exactly what makes this lager social (as with other alcohol free drinks with supposed ‘mood enhancers,’ Impossibrew contains plant fibres and root extracts that may or may not make you feel different, depending on how you feel and what you believe). This has the mouthfeel of a commercial lager like a Stella or Fosters, with the mouth-filling fizz and accessible lightness.

22 – Innis & Gunn Lager Beer

There’s an intriguing lightness to this Innis & Gunn lager – it manages to find depth as a 0.0, without needing to venture close to that relatively hedonistic (at least in alcohol free terms) 0.5 per cent mark. With a satisfying frothiness, this is a decent lager – I could imagine having two or three.

23 – Smiling Wolf Functional Rum

Described as “a wolf in rum’s clothing,” this is too mouthwashy for me, with an overpowering minty-fresh kick that doesn’t taste particularly like rum. They’ve really put their foot on the pedal – but this ‘more is more’ vibe is a misfire – for me, at least.

24 – Everleaf Forest

This is an absolute hit – with a nose and flavour profile that develops on the tongue. Saffron, vanilla and orange blossom open out into a lovely blend. I could see myself drinking this straight over ice. An exciting complexity and a sign of where the alcohol free aperitif market is destined to go.

25 – Three Spirit Extra Spicy

Ironically, my colleagues who’re drinking reckon this’d be lovely with a big glug of vodka. I don’t disagree. Yet, it doesn’t need it: this rich, spicy and fiery drink has all the kick of a bloody mary, with none of the poison. It’s grown up and moreish, but fun and conversation-starting too. Not try hard, the design just looks cool. I’m a big fan of Three Spirit and this is a bold step-up from their base range of liquids.

26 – Three Spirit Nightcap

I’m trying to keep this list to only featuring each brand once, but Three Spirit do such a good job that they get two slots. Their liquids range features Nightcap, Livener and Social liquids – each claiming to have mood enhancing ingredients depending on your vibe. I’m enjoying the Nightcap, described as a “calm, woody and mellow” drink that is good before bed. It’s got lemon balm, hops and valerian in it to help you nod off. A wonderful replacement for a little dram of whisky in the later part of the night.

27 – LA Brewery

I’ve said it before and I’ll say it again: tea is the ultimate ingredient to replace alcohol in sparkling liquids. This fizz comes equipped with white rose petals, elderflower extract and tea leaves. It’s nice. A gentle, unchallenging flavour palette, it would go nicely on a sunny afternoon to cool off.

29 – Mirror Margarita alcohol free

The Mirror Margarita is one of the must-try cocktails to buy online – it’s a “crystal clear” twist on the classic marg.  This isn’t going to knock your head off, but it is a a gently exciting expression of what can be done with agave spirit in the booze-free realm: it is the world’s first non-alcoholic blue agave spirit distilled to be distilled in Jalisco, Mexico – and comes ripe with the sweetness of cane syrup and grapefruit essence. It’s a lovely little travel-sized bottle too. There’s more to be done to make this lip-smacking, but it’s a nice sign to the future of agave production.

30 – Sylva

Ben Branson invented the low-and-no booze scene when he launched Seedlip ten years ago. Things have moved on somewhat since then, and after Branson sold his majority share of the brand to Diageo in 2019, he moved to the Essex countryside to spend five years researching his next move. That next move is Sylva, and in an exclusive interview with City AM, Branson told us all about it. It’s without a doubt a smart product: made with a process called sonic maturation, that involves shaking pieces of padauk wood from the States to extract flavour. That flavour is then turned into this brown liquid. The downside is it isn’t much like rum or whisky – it stands alone – but for connoisseurs, that might be its greatest asset. There’s a weightiness to this subtly sweet, rich liquid that doesn’t so much as burn but smoulder in the mouth. Coming in a nice slip case – hello, apple – and with your own piece of padauk wood, it’s a nice product to gift to a non-drinker in your life (scratch that: Branson hates the term ‘non drinker’, reminding that people who go alcohol free like to drink too: just not alcohol!

31 – Lucky Saint

Britain’s most-loved alcohol free beer (say some surveys), if nothing else, you’ve gotta love Lucky Saint’s cheeky advertising campaigns. The latest one is around drinking ‘religiously,’ and the tube is splattered with images of people dressed in religious garb cradling bottles of the beer. One of the original alcohol free products, founder Luke Boase told us how it wasn’t all that long ago that supermarket shoppers refused to take their samples because non-alcohol products were seen as so undesirable. Now their 0.5 pilsner is one of the most commonly found on tap in London – and it’s a brilliantly crisp, fresh drink with simplicity at its core. Boase has spent years perfecting this recipe and you can tell. This is one you can have plenty of on a summer’s day.

Read more: Seedlip revolutionised alcohol free drinking. Now its founder has a new product: We tried it first

This list is being updated every day throughout January

What does 2026 hold for London property owners?

Ordinary London home owners are set to be hammered by Rachel Reeves’ Mansion Tax and skyrocketing council tax. But the capital will prove resilient, says James Evans

It’s going to be an interesting year ahead for the capital’s property owners and how they deal with the fallout from the Budget. 

Central to this is how London property owners navigate the so-called Mansion Tax on properties valued at £2m and above. Which incidentally will only raise £400m for the government’s coffers. 

The annual charge, proposed in the Autumn Statement will be added on top of council tax which will also increase from 2028.

It’s a body blow for London homeowners. Particularly given the Capital and south east are home to 85 per cent of properties meeting this value. However, talking to our residential property owners and investment clients, our view is that the outlook for the London property market will remain steady into 2026.

London is London. So despite this assault on the capital’s housing market by the Chancellor, buyers and sellers will continue to be guided by real-life decisions and the fundamentals that support demand across our great city. The Capital has long shown an ability to absorb policy shifts while maintaining strong demand across a broad range of price points.

But back to the Mansion Tax. There is no doubt that the devil will be in the detail of the valuation process itself. This will require regular reassessment of property values and an added admin burden for owners and the HMRC.  

There have been multiple column inches charting how this punitive policy will hit ordinary home-owning Londoners and those in the south east of England. Harder indeed than castle owners on the south coast or those in stately piles in the borders i.e. those who live in actual mansion – not a one bedroom flat in a smart London neighbourhood! 

Mansion or one bedroom flat?

Ms Reeves is taxing ordinary success in the Capital. It’s a misguided Robin Hood tax. Yet we’re already seeing many Londoners who’ve held off – starting to move again. 

Undoubtedly, for some this tax will be impossible to navigate next year. It will drive out long-term residents who are the pillars of our postcodes. Creating a cliff edge around the threshold, distorting buyer and seller behaviour and representing life-changing sums for many. Also shrinking the pool of buyers. 

Yet it could also be positive for fringe areas of London which represent good value.  For example New Malden (which sits between more expensive areas like Wimbledon and Kingston) and where you can buy a three to five bedroom house for under the threshold.

So, we’re already seeing many who’ve held back due to uncertain market conditions and Pre-Budget hype getting back on the ladder. 

Primarily because they’re having more kids; are moving in together; realised they are hating their entertaining space during holiday season hosting; have had a chat with their parents over a festive drink on lifetime ‘gifts’; or are planning to get divorced as the January blues hit. 

London buyers will venture back. Not because the Budget has been fair. Or indeed because they’ve been smart on how to naviagate the Mansion Tax. But simply because people need homes near where they work, near their friends and where they want to spend their leisure time. Life just can’t be put on hold forever.

So what’s next? In our view, an area where the government has missed a trick in 2025 is Stamp Duty: reform is long overdue if the government gets its valuations right.

In 2026, the government really should look at reform that encourages people to move, not make it harder for ordinary Londoners to get on or move up the ladder. 

James Evans, CEO of leading London real-estate agent Douglas & Gordon

Uber prices set to soar as ministers introduce VAT crackdown

Prices on ride hailing apps like Uber are set to soar, after the government ploughed ahead with a promise to apply VAT to online mini cab companies despite warnings from the industry that the move would worsen the cost of living.

From Friday, private hire vehicle operators in London will no longer be able to use a little-known tax rule known as the Tour Operators Margin Scheme to reduce the VAT they pay on fares.

Win for black cabs

The crackdown, first announced by the Chancellor at November’s Budget, will bring the tax paid by the likes of Uber and Bolt in line with that of black cabs, after years of campaigning from taxi drivers and their representatives.

Black cab drivers have launched multiple legal challenges against ride hailing apps’ use of the tax scheme, which was originally intended for tour operators and allows firms to pay VAT only on their profit rather than a full fare. The licensed taxi drivers lost both legal battles, but have continued to lobby ministers arguing the uneven tax could jeopardise the future of black cabs in London.

“The government’s decision to apply VAT to all private hire journeys is a landmark step for fairness and integrity in our industry,” said Steve McNamara, general secretary of the Licensed Taxi Drivers Association.

“For too long, drivers and small operators paying the full 20 per cent VAT have had to compete with online mini cab firms benefiting from a niche tax scheme.”

Less work for Uber drivers

The clampdown has sparked a string of warnings that online ride hailing firms will be forced to raise their prices, fuelling fresh concerns around the cost of life in the capital after two consecutive tax-raising Budgets.

Commenting after the plans were first unveiled at the Budget, Andrew Brem, Uber’s general manager in the UK, said the overhaul would “mean higher prices for passengers in London” and a dearth of work for drivers “when people are already struggling with the cost of living”.

“The courts have twice ruled that the Tour Operators’ Margin Scheme applied to operators like Uber,” he added.

“This decision also establishes the absurd situation where a trip in London will be taxed at a different rate than a trip anywhere else in the UK.”

The shake-up, which has been branded the ‘taxi tax’, is expected to generate some £700m for the Treasury by 2028.

However, several other industries – including the UK’s beleaguered hospitality sector – have also warned the move would will have damaging knock-on effects.

Bars and restaurants fear it will further dampen demand for meals out, after they were already to shoulder several sharp tax increases including hikes to their business rates and payroll tax bills.

In a letter to the Chancellor ahead of the Budget, bosses from Uber and Bolt also warned it constituted a breach of Labour’s pre-election manifesto, which promised to to raise VAT, income tax or national insurance. They added tat the average fare would go up by as much as 15 per cent.

Rachel Reeves said: “We’re putting the brakes on the illegitimate use of a niche tax scheme to protect everyday cabbies. We’ll use the £700m a year this raises to deliver the country’s priorities – cutting the cost of living, cutting waiting lists and cutting debt and borrowing.”

The impact of the change will be restricted to the capital, where local regulations forbid ride hailing operators from acting as an agent. Under the agency model, which Uber is currently making its default operating model elsewhere in the UK, the driver – not the company – is providing the transport.

This means that outside London the firm will only pay VAT on its commission, while most drivers are unlikely to have to pay the consumption tax as their earnings rarely surpass £90,000, the threshold at which corporate VAT kicks in.

Why Mexico, Dubai and Italy are the countries to watch in sport in 2026

This time last year, City AM asked me to identify three countries for which 2025 would be an important year in sport.

My three choices were Saudi Arabia, Morocco and the United States.

Judging by recent standards, Saudi Arabia’s year was relatively quiet albeit interspersed with some rowdy moments, notably the Public Investment Fund’s acquisition of console gaming business EA in what became the world’s largest ever leveraged corporate acquisition.

Yet fiscal constraints otherwise remain in the kingdom, which are unlikely to be eased until 2027 hence in 2026 we again shouldn’t expect too much largesse from the country.

Morocco’s staging this year of the Fifa U-17 Women’s World Cup was the first of five editions to be hosted in the country (which will end in 2029). Moreover, the Moroccan men’s team won the Arab Cup and AS FAR won the CAF Women’s Champions League.

With the AFCON tournament now underway in the country, Morocco’s relentless rise to sporting prominence shows no signs of abating. 

As for the United States, need anything more be said? From Donald Trump induced World Cup hysteria through to private equity investors, via the NBA’s expansion into Europe, the country is never more than a field goal away from the biggest hot takes in sport. 

And with world football’s showcase tournament heading Stateside in 2026, I’m inclined again to list the US as one of my countries to watch during the upcoming year.

However, I don’t want to be too predictable. 

Mexico and its neighbours

Instead, I will highlight Mexico (one of Fifa’s World Cup co-hosts) as one of my countries to watch. Ultimately, Fifa’s showcase competition can only be successfully delivered if the Central American country plays its part.

This isn’t guaranteed, as relations between Mexico and the United States have at best been described as cordial. At worst they are characterised as being icy.

How Mexico navigates relations with its neighbour will determine how successful the World Cup is and will be a test of how its president, Claudia Sheinbaum, manages her relationship with Trump.

Cross border movements of football fans and others, allied to issues of migration, will test relations between them, although Sheinbaum will also face challenges at home.

Significant levels of violent crime and murder will provide a deeply troubling backdrop to the World Cup. With potentially large numbers of visitors set to enter the country, drugs and organised gangs could pose problems.

At the same time, Mexico’s government is grappling with a restive Gen Z population concerned about social inequality, environmental degradation, and the aforementioned crime. Already there have been riots involving this demographic group; the World Cup may add impetus to their grievances and activism.

Italy’s sport resurgence?

One of the countries hoping to qualify for next summer’s tournament is Italy, though the country’s men’s team first must make it through a series of play-off matches. This isn’t guaranteed, indeed the team has had a wretched few years, as have its club sides in international competition.

Once great but now significantly diminished, Italian football’s decline is mirrored by that of Ferrari which continues to stutter and stumble its way through Formula 1. The signing of Lewis Hamilton was supposed to mark the rebirth of the once dominant team, though this season has fallen way short of expectations.

Italy’s image, reputation and soft power are arguably being undermined by their underperforming icons, though perhaps this is a country in transition.

The Winter Olympics will once again be staged in Italy, just twenty years since its last hosting of the event. Milan’s San Siro stadium will host the opening ceremony, as the venue heads towards the end of its lifespan. This year, an agreement was finally reached for football teams AC and Inter to construct a new home.

This should serve as an emblem for Italian sport’s transformation; tennis is witnessing an emergence of the ‘Jannik Sinner’ era, whilst in 2025 Italy became the first nation to win both the Men’s Davis Cup and Women’s Billie Jean King Cup the same year.

If the Italian football team can win a few more matches and Lewis Hamilton can drive a little faster, then 2026 could prove to be a pivotal year for the country.

Dubai sport strategy

As Saudi Arabia contemplates its sporting future and Qatar doubles down on utilising its expensively constructed sporting infrastructure, Dubai has been a relatively low-key member of the international sport community.

Sure, Dubai has established itself as an important destination for golf, rugby and tennis events, but the Emirate’s focus over the last thirty years has been on tourism, and on building its national airline and airport (admittedly through a series of sport sponsorship deals). 

However, it’s more than twenty years since there were rumours about the Investment Corporation of Dubai buying an English Premier League football club, the Emirate doesn’t stage in F1 race, and there have been none of the big-ticket sport hosting opportunities that regional rivals have been feasting on.

All of this might be about to change.

In November 2025, Dubai launched its Sports Sector Strategic Plan 2033, which is intended to transform Dubai into the world’s leading sporting city by the year 2033. The plan is targeting the generation of a significantly larger sport economy, driven by stronger engagement with sport, increased spectatorship and event staging.

The Emirate will be playing catch-up in 2026 as it seeks to chase down its Gulf rivals. Even so, with money to spend and a newly found strategic orientation, Dubai is likely to be a highly active member of the international sporting community during the forthcoming year.

Simon Chadwick is professor of sport and geopolitical economy at Skema Business School in Paris

The best new films to catch in 2026, from Toy Story to Peaky Blinders

New installations of classic franchises and brand new gambits from the likes of Christopher Nolan, there is a bumper set of new films lined up for cinematic release in 2026. Here are some of the new releases not to miss.

Toy Story 5

It’s been over 20 years since Woody captured the hearts of a generation, but it’s testament to the movies that plenty of those people – now middle-aged Millennials in their mid-thirties – will rock up to see this fifth installment. The franchise has retained the easy charm and whimsical feeling of the inaugural outing, which critics broadly positive about the sequels, which follow a wooden toy called Woody and his friends, including Mr Potato Head, Rex, Slink Dog, and sometime enemy, Buzz Lightyear. Tom Hanks returns as the voice of Woody and Tim Allen as Buzz.  The fifth installation examines the role of traditional toys in a new technological era. 19 June, 2026 

The Odyssey

For the chin-stroking, culturally esteemed cinephile: Christopher Nolan of the Batman Trilogy, Oppenheimer and Inception, returns with The Odyssey, a filmic version of Homer’s classic ancient Greek poem about the 10-year journey of King Odysseus who battles gods and monsters after the Trojan War. Matt Damon plays the title role and the wider cast features Tom Holland as Telemachus, son of Odysseus, his fiance Zendaya as Athena, goddess of wisdom, and Robert Pattison as arrogant plotter Antinous. Explaining how he approached the storytelling, he told Empire: “We shot over 2 million feet of film… “As a filmmaker, you’re looking for gaps in cinematic culture, things that haven’t been done before. And what I saw is that all of this great mythological cinematic work that I had grown up with – Ray Harryhausen movies and other things – I’d never seen that done with the sort of weight and credibility that an A-budget and a big Hollywood, IMAX production could do.” 17 July 2026

Michael

People don’t seem to be talking so much about cancel culture anymore: if anyone can, Michael Jackson may be the proof that cancellation isn’t straightforward. Following multiple allegations of sexual misconduct against minors, a new critically-acclaimed musical about his life has opened in the West End, which has become a fan favourite, and now a new biopic Michael tells his life story on the big screen, directed by Antonie Fuqua and starring Jaafar Jacks. It’s one thing acknowledging his music is good despite the allegations – in other words, separating the artist from the art – but a whole other thing entirely committing to a biopic that faithfully examines his life. Michael is sure to be one of the most controversial films of this year.

The Devil Wears Prada 2

Meryl Streep and Anne Hathaway return 12 years after the original movie for another helping of high fashion drama. We follow Pete and Anne, who work at style magazine Runway, as they navigate the modern media landscape. The movie is inspired by Anna Wintour, Editor-in-Chief at Vogue, the fashion publication which is itself rumoured to be navigating a challenging time as print sales decline and readers turn more to social media reels to read and take in content. How much of that, versus the frothier business of dating and glamorous parties, this new film will take on is the big question. Paparazzi shots of Streep and Hathaway on the New York set have been going viral for how both actors look pretty similar to how they did over a decade ago. Get your pitches ready: Priestly will see you now. 1 May 2026

Peaky Blinders The Immortal Man

Steven Graham had a heady 2025 with Adolescence, the crime drama examining masculinity and youth radicalisation that birthed a new era of TV production with its one-shot style, meaning that a whole episode was filmed in one shot, as live, without any takes. But before that he was known for Peaky Blinders, the crime drama set in the 1920s following the lives of the Shelby family, who lead a criminal empire in east London. This first feature film adaptation moves into the 1950s, and continues to star Cillian Murphy as a (now presumably older) Tommy Shelby. 20 March

The Super Mario Galaxy Movie

Mario, Luigi and Princess Peach return to the big screen following the first movie, Super Mario Bros Movie, which broke box office records in 2023, making almost £1 billion worldwide. Before that there was Super Mario Bros, the 1993 live-action movie starring Bob Hoskins as Mario. Of course, in the years in-between millions have played Mario Kart and Mario World on the Nintendo, and this new feature film will be inspired by the famous video game Super Mario Galaxy. Expect the characters to embark on a space-themed adventure. In an all-star cast, Chris Pratt plays Mario, Jack Black is Bowser, Anya Taylor-Joy is Princess Peach and Charlie Day is Luigi. April 2026