Posted on: 19.12.2025
Hanson Search hosted its annual public affairs webinar, focussing on the UK’s political outlook for the year ahead. The session was hosted by Janie Emmerson,
Labour enters 2026 having delivered a broad programme of legislation. The panel pointed to reforms spanning welfare, employment rights, planning and infrastructure. Rail nationalisation was also cited as a clear signal of a centre-left policy agenda. Panellists also highlighted efforts to strengthen the UK’s international economic position. Trade agreements and diplomatic engagement were seen as particularly important against a backdrop of heightened global tension. However, discussion repeatedly returned to the gap between policy activity and political clarity. Panellists noted the absence of a clear narrative about what the government is trying to achieve over the remainder of the parliament. High-profile policy reversals have weakened confidence. They have also raised doubts about how firmly ministers will stand by decisions as political pressure increases.
On fiscal policy, the panel described an approach shaped largely by constraint. With public debt high and growth weak, Labour is funding commitments through a mix of increased spending and less visible tax measures. These include fiscal drag and higher costs for employers. For businesses, this points to continued cost pressure through 2026. Visibility on the future direction of tax policy remains limited. The absence of a clear medium-term framework for tax, spending and borrowing is making longer-term planning more difficult.
The Employment Rights Act was described as one of the most significant recent changes affecting the labour market. Although the legislation has passed, panellists stressed that its impact will depend on consultation and secondary legislation over the next two years. Discussion focused on uncertainty around hiring decisions, workforce flexibility and compliance. This is particularly acute for smaller employers and sectors that rely on non-standard working patterns. The panel expects employment policy to remain a live and contested issue throughout 2026.
Global instability featured heavily in discussion of defence and foreign policy. The panel noted a shift towards closer European alignment and a stronger focus on national resilience. At the same time, pressure is growing to increase defence spending without a settled funding plan. For organisations, the message was practical rather than theoretical. Resilient supply chains, secure energy access and financial headroom were highlighted as priorities. International developments can feed through quickly into domestic costs, operations and investment decisions.
The May elections were described as a significant test for the government. With voters increasingly detached from the main parties, panellists expect a higher risk of volatility. Internal political pressure and shifts in policy direction are likely in the months that follow. Panellists were sceptical about how much planning and local government reform can achieve without long-term funding. Continued financial strain on councils was seen as a major barrier to improving services and delivering infrastructure.
The panel framed 2026 as a test of whether the government can move from legislation to delivery. Political stability, clearer priorities and more predictable fiscal and regulatory decision-making were seen as essential. For organisations, the year ahead is likely to be shaped less by new announcements and more by implementation. Close attention to detail, sustained engagement and preparedness will be critical when navigating the UK’s public affairs landscape in 2026.
As organisations move into 2026, the challenge is no longer just understanding policy direction. It is about having the right leadership in place to respond to uncertainty, regulatory complexity and scrutiny. Public affairs teams are being asked to do more. They must operate with greater precision, stronger judgement and deeper stakeholder insight. Hanson Search works with organisations across the UK and internationally to recruit senior public affairs, corporate affairs and government relations leaders who can meet these demands.
From building in-house public affairs functions to appointing experienced directors and advisers, we support clients at moments of political and organisational change. If you would like to discuss your public affairs hiring plans for 2026, or explore how the talent market is evolving, our team would be pleased to support you.
Watch the full Britain 2026 Public Affairs Webinar here