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The year ahead, as at January 2026
Introduction
We are delighted to provide you with Freeths’ review of key legal developments anticipated in 2026. We have focussed on legal developments of interest to commercial businesses as at 16 January 2026, and the key impacts for business that arise from those developments.
This review does not purport to offer a comprehensive assessment of how every development might impact the specific circumstances facing your business. Nevertheless, we hope that this review provides a helpful resource for highlighting key potential areas of significance or concern. Our Freeths experts will be happy to provide specific legal advice on any areas that you would like to explore further.
Key contact
Polly Wisner
Associate Director, Knowledge & Innovation Lawyer
Contents
AI regulation remains uncertain going into 2026: With UK businesses operating without a dedicated AI Act. Organisations should prepare by strengthening governance, managing data protection risks, and improving AI literacy. With rapidly advancing multimodal models, firms must balance opportunity with oversight across procurement, sales and service delivery.
Energy, waste & reporting in 2026: Heat networks face first-ever regulation under Ofgem, with strict authorisation and technical standards. EU textile EPR and UK sustainability reporting reforms raise compliance stakes. Businesses must act now to prepare for new obligations and avoid penalties.
2026 brings major changes for retailers and online traders: New unit pricing rules take effect in April, and the CMA will intensify enforcement of consumer protection breaches under the DMCCA. Businesses should review pricing, discounting, and online sales practices to avoid fines and increased scrutiny.
Streamlined litigation ahead: Costs Budgeting Light is making mid-value disputes more accessible, while new rules on public access documents and electronic service modernise proceedings. In the meantime, Mazur has shaken up the way in which litigation teams work. Stay informed on reforms, transparency, and compliance risks shaping commercial litigation in 2026.
Competition law in focus: Continued emphasis on digital markets, consumer protection, and competition in key sectors. Expect faster, more predictable merger reviews with greater openness to behavioural remedies, but tougher scrutiny of strategic transactions and reforms to national security rules. Businesses should prepare for proactive compliance and early CMA engagement.
Major compliance shifts are now in force: from the new corporate offence of failing to prevent fraud to a modernised product safety regime covering AI, lithium‑ion risks and online marketplaces. With tougher enforcement and rapidly evolving standards, organisations must strengthen governance and prepare for more expansive regulatory duties.
Big shifts for construction in 2026: Safety rules tighten, payment reforms accelerate, Gateway delays face an overhaul and global cost pressures grow. The industry faces substantial regulatory changes. Managing costs escalation for offshore wind and data centres has become increasingly crucial. Explore what's coming and how to stay ahead.
Corporate compliance in 2026: Identity checks, stricter filings, and tougher penalties under ECCTA redefine corporate governance. New prospectus rules and enhanced board accountability raise the bar for transparency. Businesses must act now to stay compliant and avoid enforcement risks.
Data Protection in 2026: The DUAA reshapes UK privacy law with tougher fines, streamlined compliance, and new rules on AI-driven decisions. Cybersecurity reforms add resilience for critical services. Businesses must adapt fast to seize opportunities while managing heightened risks.
Employment law overhaul: Sweeping reforms under the Employment Rights Act reshape workplace rights in 2026 - covering issues such as sick pay, parental leave, redundancy consultation and union access. Employers must act now to stay compliant and manage rising litigation risks.
Environment and planning in 2026: Major reforms reshape planning and environmental compliance. The Planning and Infrastructure Act introduces strategic nature recovery plans, while tougher water enforcement and waste system changes demand proactive action. Businesses must prepare for new levies, penalties, and sustainability obligations.
ESG: resist the Trump hype: 2026 brings a wave of new responsibilities around how businesses impact the environment, support people and make decisions. These changes - often grouped under ‘ESG’ (Environmental, Social and Governance) - aren’t just regulatory hurdles; they’re opportunities to strengthen trust and create long term value. Our latest insights show what’s changing and how to prepare.
A transformative year ahead: With new powers for open banking, stablecoin regulation, fund tokenisation, modernised rules for capital raising and consumer credit. Firms must balance tighter compliance with opportunities across digital assets, payments innovation and a more growth‑focused regulatory regime.
Major reforms reshape the UK immigration landscape: From tougher border enforcement and new criminal offences to stricter settlement rules, higher language thresholds and expanded right‑to‑work duties. With rising compliance risks and fast‑moving policy changes, employers must prepare for significant operational and workforce impacts.
IP & media shift: New HFSS advertising rules, rising UKIPO fees and sweeping consultations on AI, copyright and designs reshape the IP landscape. With landmark cases on AI training, plant breeders’ rights and product labelling, businesses face tighter rules, higher costs and greater scrutiny across brand, content and innovation strategy.
Planning reform accelerates in 2026: With new powers under the Planning and Infrastructure Act, major investment in planners, a revised NPPF and expanded call‑in powers. While the outlook for housing delivery remains uncertain, developers may benefit from faster decisions, greater consistency and improved access to developable land.
Commercial property law faces sweeping updates: from LTA 1954 reform and business rates changes to new transparency rules and potential overhauls of repairing obligations. Key cases on redevelopment breaks, insurance costs and access rights signal rising scrutiny and evolving landlord–tenant risk.
Commercial real estate faces sweeping change: Martyn’s Law, new devolution powers affecting property owners and developers, and a surprise proposal to ban upwards‑only rent reviews. With the Building Safety Levy and evolving planning reforms, 2026 brings increased complexity for owners, investors and occupiers.
Restructuring risks in 2026: Employment law reforms and tougher enforcement reshape insolvency strategy. Expect higher employee liabilities, stricter consultation rules, and proactive investigations targeting financial crime. Businesses and practitioners must plan ahead to manage cost, compliance, and litigation risk.
Significant tax changes arrive in 2026: With higher dividend rates, reduced reliefs, new capital allowances, PAYE reform and major business‑rates adjustments. Individuals and companies face rising complexity, tighter rules and shifting reliefs across income, investment and corporate structures.
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