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Europe Set for Steady Growth in 2026

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Europe Set for Steady Growth in 2026
The Eurozone is forecast to expand by 1.2%. | Photo: Vitaly Gariev

The new year is already looking promising for Europe, with the economy across the continent expected to maintain a steady pace of growth in 2026. This outlook is supported by a favourable mix of easing inflation and lower interest rates, according to the Mastercard Economics Institute’s Economic Outlook 2026 report. The Eurozone is forecast to expand by 1.2%, while inflation is set to ease to 1.8% as energy prices fall, the euro strengthens and imports from Mainland China become more affordable.

Gradual Strengthening Across Key Markets

The Economic Outlook 2026 report points to a gradual but meaningful strengthening across the Eurozone. Germany is expected to see one of the most notable improvements, with growth rising from 0.3% in 2025 to 1.2% in 2026, driven largely by fiscal expansion and a more favourable inflation environment. Southern Europe is also set for a strong year, with Spain forecast to grow by 2.1%, supported by tourism, domestic demand and a resilient labour market.

Employment remains a stabilising force across the region. Job creation continues, and unemployment rates are hovering near historic lows, even in markets where they have edged up slightly. This labour resilience is helping to sustain household spending and confidence as inflation cools.

Consumers to Avoid Big Purchases

Even with improving economic fundamentals, European consumers remain cautious and selective. The report highlights a clear preference for small-ticket indulgences — from groceries and apparel to cosmetics, entertainment and dining. These categories continue to perform well as households treat themselves in modest ways while avoiding larger, more expensive purchases such as furniture and electronics.

This shift reflects a broader behavioural trend: consumers are willing to spend, but they are doing so in ways that feel manageable and low‑risk, even as inflation pressures ease.

SMEs Embrace Digital Transformation

Small and medium-sized enterprises are undergoing a significant structural transformation, driven by rapid digital adoption. From retail to hospitality, SMEs are integrating digital tools, online platforms and new technologies to streamline operations and reach customers more effectively. This shift is reshaping the region’s commercial landscape and helping businesses remain competitive in a changing economic environment.

AI Integration Set to Shape 2026

Artificial intelligence is moving from experimentation to full integration across European industries. Supported by major infrastructure investment, AI adoption is accelerating, with Denmark emerging as a regional leader according to the Mastercard Economics Institute’s Enthusiasm Index. The report suggests that deeper AI integration — combined with targeted fiscal stimulus — will be a key driver of productivity and economic growth in 2026.

“Europe’s economy in 2026 is set to grow steadily supported by lower inflation, lower interest rates and resilient labour market, but performance will diverge along fiscal lines. Germany will experience a meaningful acceleration led by fiscal expansion, while growth will be more subdued in countries where fiscal policy is more restrictive, such as France, Italy or the UK. Performance is set to remain resilient across southern Europe and Central and Eastern Europe,” says Natalia Lechmanova, Chief Economist for Europe at the Mastercard Economics Institute.

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Why more UK businesses are choosing to repurpose rather than rebuild

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Why more UK businesses are choosing to repurpose rather than rebuild
Within the environmental case, reuse offers businesses a practical route to expansion. | Photo: Glypse Tan

Rather than clearing a site and starting again, more UK businesses are choosing to work with what’s already there. Adaptive reuse, converting warehouses, former retail units, industrial buildings and dated offices into premises fit for modern use, is fast becoming a genuine growth strategy instead of a fallback option. As development costs rise, planning rules tighten, and sustainability expectations increase, the appeal of reworking existing structures has grown sharply. For many organisations, the ability to modernise a familiar building, reduce environmental impact, and avoid the disruption of relocation is becoming a practical and commercially attractive alternative to starting from scratch.

Why Adaptive Reuse Is Gaining Attention in the Commercial Sector

Interest in reuse has grown alongside a sharper understanding of the environmental cost of starting from scratch. Historic England’s research into embodied carbon found that refurbishing a typical building produces just a fraction of the emissions associated with demolishing it and constructing new, since so much of a building’s carbon footprint is locked into its original materials and structure. That evidence has shifted reuse from a niche, heritage-led choice into a mainstream consideration for developers and occupiers alike.

The Business Benefits of Repurposing Existing Buildings

Within the environmental case, reuse offers businesses a practical route to expansion. Converting an existing building is typically faster to deliver than a full redevelopment, avoids lengthy planning battles associated with new-build schemes, and lets a business retain a familiar location that staff and customers already know. For many organisations, that combination of speed and continuity outweighs the appeal of a brand-new but disruptive move.

Balancing Sustainability Goals With Commercial Growth

None of this means cutting corners on ambition. A converted warehouse or repurposed office can meet the same performance standards as a new building when the right upgrades are made, from improved insulation to more efficient heating and ventilation. The goal isn’t choosing between sustainability and growth but recognising that a well-executed reuse project can deliver both at once, often more affordably than starting again.

Modernising Older Properties for Today’s Business Needs

Older commercial buildings frequently fall short of what today’s occupiers expect, but that gap is rarely as difficult to close as it first appears. Bringing more daylight into a deep-plan warehouse or industrial unit, for instance through the addition of rooflights or roof windows, can change how usable a space feels without touching its footprint. JLL’s recent analysis of the UK office market highlights exactly this kind of targeted, lighter-touch refurbishment as one of the sector’s strongest opportunities, particularly in regional towns and cities where good-quality space is in short supply.

Creating Long-Term Value Through Strategic Refurbishment

Done well, reuse projects tend to hold their value over time instead of simply delaying the need for further work. A building refurbished with durability and future flexibility in mind, rather than the cheapest possible fix, is better placed to adapt to whatever a business needs next, whether that’s a change of use, a change of tenant, or simply changing working patterns.

Adaptive reuse won’t suit every site, but for a growing number of UK businesses it’s proving to be a more resilient path to growth: one that makes the most of what already exists rather than starting over.

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How much does it cost for a small business to exhibit at a London event?

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How much does it cost for a small business to exhibit at an event in London
Exhibiting in London can quickly become a five-figure investment for a small business. | Photo: Marcio Delgado

Exhibiting at a London trade show sounds fairly straightforward. Pay for a stand, bring some products, spend the day talking to potential customers and hopefully leave with enough leads to make the whole thing worthwhile.

Then you discover the stand needs electricity. And furniture. And graphics. And someone to staff it. And somewhere to store everything. And possibly Wi-Fi that costs more than your home broadband.

For a small business or startup, the real cost of exhibiting at a London event can range from a few thousand pounds to well into five figures.

So, if you’re considering your first exhibition, here’s what you should actually budget for in 2026 — and how packages that bundle together most of what you need can save you money and give you some peace of mind.

1. Exhibition space: from roughly £2,000

Your biggest expense will usually be simply getting onto the exhibition floor.

There isn’t a standard London rate. Smaller specialist events may offer packages for a few thousand pounds, while major exhibitions can more than £1,000 per square metre.

For a small company testing exhibiting for the first time, £3,000–£6,000 + VAT for the space alone is a realistic starting assumption.

And check exactly what “stand” means before signing anything.

2. The actual stand: £500–£5,000+

If you’ve bought a shell scheme, you’re usually getting the exhibition equivalent of an unfurnished flat: walls, flooring and perhaps basic lighting and a name board.

You still need to make it look like your company.

For a basic setup, you might spend £500–£1,500 on printed graphics, banners, counters and displays that can potentially be reused.

A custom-built stand is another world entirely. Once designers, builders, specialist materials, screens and installation become involved, several thousand pounds can disappear remarkably quickly.

If this is your first exhibition, reusable graphics and a simple stand are usually the more sensible option. Nobody has ever signed a £50,000 contract because your shelving had particularly beautiful curves.

3. Electricity, Wi-Fi and the boring extras: £200–£1,000+

Here lies one of the great joys of exhibiting: discovering that a plug socket is now a premium product.

A London event, earlier tis year, offered a basic 500W switched socket at around £169 on the early-booking rate. Lighting, additional power, internet connections, screens, cleaning and other services can all be separate.

Before booking, ask the organiser for the optional-services price list. It may tell you considerably more about your final bill than you imagine.

4. Staff: realistically from £150 per person, per day

Someone has to actually stand there.

If that’s you, there’s technically no additional payroll expense — although your time still has a cost, particularly when you’re the person who normally runs the business.

If you’re hiring temporary staff, remember that the legal National Living Wage for workers aged 21 and over is £12.71 an hour since April 2026. Your actual cost is likely to be higher once you account for the rate required to attract suitable event staff, agency fees where applicable and employer costs.

For budgeting purposes, allowing £150–£250 per person for a normal event day is a reasonable starting point for basic temporary staffing, with experienced salespeople, demonstrators or specialist staff costing considerably more.

5. Products, samples and giveaways: £100–£1,000+

Budget according to the cost of getting someone to remember or experience your product, instead of simply producing merchandise because exhibitions traditionally have merchandise.

For a small brand, £100–£500 might cover simple printed materials and samples. Product-heavy businesses could easily spend £1,000–£2,000 or more.

What matters is what you’re trying to achieve. A food or beauty brand, for example, will genuinely fare better with hundreds of samples rather than overly elaborate — and costly — merchandise with your logo on it. You’re welcome to spend enormous amounts of money on tote bags or magnets, but you don’t necessarily need them to make your participation in a trade show a success.

6. Transport, storage and logistics: £200–£500+

Then everything has to get there.

If your exhibition display fits into two suitcases, congratulations: you’ve won.

If you’re transporting boxes of stock, furniture, display equipment or large graphics into a major London venue, you’ll need to consider couriers, parking, loading restrictions, storage and potentially overnight accommodation for anyone travelling from outside London.

For a small London-based company with a simple setup, £200–£500 may be sufficient. Once vans, couriers and storage enter the equation, it can easily add up.

You don’t even need to be transporting items for an exhibition these days to expect to pay a premium rate to get stuff from A to B. Earlier this year, I bought a vintage bookcase on eBay for £250. To get it from Devon to London, the cheapest quote I managed to find from a delivery company was £175.

7. Consider events offering all-in-one packages

There is another model worth considering that can make exhibiting your business in London more affordable: events where most of those moving parts are bundled together.

Industry trade event Beauty Bulb Live London, taking place on 7 October 2026 at the Business Design Centre in Islington, for example, currently advertises a fixed £4,950 + VAT brand package. That includes a fully built brand pod, with its design, production, delivery and assembly handled by the organiser. The package also includes pre-event visibility, a digital platform listing, post-show buyer communications and structured introductions for selected brands.

“We are handling all logistics. It’s brand equal and human first, and we do all of the heavy lifting. We want people to leave our show feeling connected to our beauty community, and we are building something long term with this event. Our support doesn’t end once the show closes, and exhibitors remain on our digital platform, where they will be promoted to our entire sales channel network for three months post-show,” says British entrepreneur Faye Speedie, who launched Beauty Bulb in 2017.  

How much should you budget for your trade show in London?

For a small business exhibiting at a London trade event in 2026, £4,000–£8,000 is a reasonable working budget for a modest professional presence, while larger shows, bigger stands and custom builds can push the cost past £10,000 very quickly.

But don’t start by asking, “How much is the stand?”

Ask what you’re getting for the money.

Does the price include the structure? Furniture? Electricity? Exhibitor passes? Marketing? Setup? Access to buyers? Lead capture? Wi-Fi?

And, most importantly, who is actually going to be in the room? Spending £5,000 to meet 50 genuinely relevant buyers could be considerably better value than spending £2,000 to meet 5,000 people who aren’t interested in buying anything from you.

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HMRC launches operation targeting dodgy barbers and vape shops

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HMRC launches operation targeting dodgy barbers and vape shops
In May the Home Office launched a new High Street Organised Crime Unit with £30 million to reduce tax fraud. | Photo: František Čaník

If you live in London and have noticed vape shops and barbers seemingly multiplying on a high street near you, you are not alone. The UK government department responsible for collecting taxes is stepping up its crackdown on suspected tax fraud and illegal activity on Britain’s high streets, with HMRC aiming to carry out more than 30,000 enforcement interventions in 2026.

Vape shops, nail salons, candy stores, barbers and other high street businesses suspected of breaking tax rules are among those in the spotlight, while members of the public are now being encouraged to also report suspicious activity.

Although not all lost tax revenue is the result of illegal businesses, the amount of tax owed that never reached HMRC is staggering. According to official government figures, the UK’s total tax gap for the 2024–25 tax year was estimated at £59.2 billion — money that HMRC says should theoretically have been collected but was not. Small businesses accounted for 62% of that tax gap, the largest share of any taxpayer group, amounting to roughly £36.7 billion.

Labour exploitation and sale of illicit goods also targeted

The enforcement drive is aimed at disrupting criminal networks involved in tax fraud, labour exploitation and the sale of illicit tobacco and vapes.

This latest push follows the launch of a £30 million High Street Organised Crime Unit in May, bringing HMRC together with Trading Standards, police, the Home Office and the National Crime Agency. HMRC has already demonstrated how the tougher approach could work. In June, officers carried out unannounced visits to six souvenir shops in central London alongside Immigration Enforcement, Trading Standards and Metropolitan Police officers.

Public urged to report suspected tax fraud

HMRC has also upgraded its online tax fraud reporting service, allowing people to provide information anonymously about suspected tax fraud, money laundering and other criminal activity.

“Too many high streets have been blighted by dodgy shops that harm local communities and undercut honest businesses.

“If you see something that doesn’t look right, like suspected tax fraud or money laundering, use HMRC’s fraud reporting service and help protect our high streets,” said Chancellor of the Exchequer John Healey.

People who believe a business may be involved in tax fraud or money laundering are being encouraged to use HMRC’s online Report Tax Fraud service rather than confront businesses themselves.

The system asks users for factual information about what they have witnessed and allows reports to be submitted anonymously.

HMRC says the intelligence will help its teams build a clearer picture of suspected criminal activity and target enforcement action more effectively as the nationwide high street crackdown gathers pace.

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