Trending commercial issues to know about in 2026

As 2026 begins, LawCareers.Net explores the key commercial issues that are set to shape the year. For aspiring lawyers, becoming commercially aware involves understanding the environment clients operate in and recognising how wider events influence legal work. This guide rounds up a range of commercial topics and considers their impact on the year ahead.

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Commercial awareness is a vital skill for all lawyers. Keeping up with the news – and thinking critically about what you consume – will help you to build this awareness over time. Lawyers need to recognise how certain events impact their clients. Therefore, starting to build this awareness early on is key. You don’t need specialist knowledge, but being ready to talk about a commercial issue in an interview will help you stand out.

Geopolitics and trade
Sustainability and climate
Workplace transformation 
Economic outlook
State of the courts
AI and technology
What’s next?

Geopolitics and trade

Geopolitics and trade

Geopolitical shifts were a major theme in 2025, with trade tariffs dominating headlines. In 2026, tariffs with the US remain an ongoing talking point, and the UK’s relationship with the European Union (EU) could get a refresh.

What does this mean for the profession?

In short, uncertainty keeps lawyers busy. As tariffs continue to change and negotiations with the US and the EU evolve, UK businesses will need lawyers to help them to understand the rules they must follow and how these affect their operations.

Since the start of his term, US President Donald Trump imposed tariffs on a wide range of goods. Tariffs were also a big conversation at the start of the new year, due to tension with the US over the sovereignty of Greenland. Although the immediate threat of Greenland‑related tariffs has eased, the broader and continued use of tariffs by the US remains a major source of global economic uncertainty. The International Monetary Fund (IMF) states that although “the tariff shock is smaller than originally announced", ongoing US tariff measures remain a key driver of international instability and are a major reason it now expects economic growth to slow to 3.1% in 2026, down from the 3.3% forecast a year earlier.

The UK has tried to soften the blow for businesses through initiatives like the US-UK Economic Prosperity Deal, but negotiations are still very much in progress and UK businesses are likely to feel the effect of tariffs for a while, according to Macfarlanes LLP.

Meanwhile, the UK’s relationship with the EU will be just as important. The UK government is currently negotiating a ‘reset’ on a number of areas, including:

• its animal and plant health agreement;
• the UK joining the EU’s electricity market; and
• closer emissions trading systems.

For lawyers, this reset means steady demand for clear, practical advice. Businesses will need support to understand new regulations, update their policies and keep their supply chains running smoothly.

Sustainability and climate

As the year begins, sustainability continues to evolve as a core commercial priority. In 2025, businesses focused on simplifying and streamlining sustainability processes. As businesses continue to adjust to these regulatory changes, lawyers will play an important advisory role.

What does this mean for the profession?

Many businesses will likely spend 2026 finetuning their approaches to sustainability, Linklaters LLP writes. For lawyers, this means helping clients to interpret updated requirements, refine their reporting and ensure their disclosures hold up under pressure.

This sits within a wider pattern of evolving sustainability regulation. In December 2025, the EU reached a deal to scale back corporate sustainability laws, following pressure from the US and Qatar. One change was that the EU will limit its Corporate Sustainability Due Diligence Directive (CSDDD) to only the largest EU corporations. It also delayed the deadline to comply with CSDDD. In the UK, the government is yet to announce whether publishing transition plans will be compulsory. Even so, the shift to renewable energy remains a big focus for investors, keeping demand for legal advice around long‑term energy strategy and risk management high.

At the same time, businesses are adapting their products in response to sustainability pressures from consumers. According to Foot Anstey LLP, more brands are experimenting with ‘circular business models’, which prioritise reusing and recycling. For example, IKEA’s buy-back and resell programme allows customers to give back furniture in exchange for in-store credit.

Lawyers will need to consider a range of compliance rules as they advise businesses on new sustainability-led initiatives. The Financial Conduct Authority’s 2024 anti‑greenwashing guidance requires sustainability claims to be clear and not misleading, while the Economic Crime and Corporate Transparency Act 2024 has introduced strict liability for misleading environmental statements. The Competition and Markets Authority now also has stronger powers under the Digital Markets, Competition and Consumers Act 2024 to directly investigate and fine companies for intentional greenwashing – with penalties of up to 10% of global turnover. Meanwhile, the Advertising Standards Authority (ASA) states that it’ll continue to proactively crack down on non-compliant advertising. For example, in December 2025, the ASA banned ads from Nike, Superdry and Lacoste for misusing the term ‘sustainable’, making it clear that claims must be sufficiently justifiable. This tightening framework means firms could play an increasingly preventative and advisory role.

Outside of greenwashing, law firms and chambers are likely to see more climate litigation. More than 3,000 cases have been filed globally to date, with 230 cases in 2024. Governments and public bodies are key targets for these claims, but there’s also increasing scrutiny on corporate climate-related conduct, according to Hogan Lovells.

All of this means sustainability work is becoming broader and more complex. For aspiring lawyers, it’s a great area to watch; the rules are changing quickly, the work is varied and it’s becoming a core part of commercial practice.

Workplace transformation

After a whirlwind of changes in 2025, employment law isn’t slowing down in 2026. The Employment Rights Act received royal assent right at the end of last year, and it’s about to keep employment teams very busy.

What does this mean for the profession?

As changes come through, employers and legal teams will need to embed the new requirements into their own practices and support clients as they adapt. The act brings a fresh wave of both preventative work and disputes for employment teams. A number of changes take effect in April: new parents  will be entitled to leave from day one, paternity leave can be taken more flexibly and statutory sick pay will become a day one right. These changes will require businesses to update contracts, handbooks and HR systems, which means firms will be closely involved in ensuring clients’ processes are compliant and legally robust.

Unions are also getting more attention this year. Rules around strikes will tighten, with longer notice periods and stricter picketing rules. Plus, later in the year, unions are due to gain new rights like workplace access. This will create continued demand for legal advice as employers navigate more complex union relationships, manage potential disputes and seek to minimise litigation risk.

There’s more change coming in October, including tighter limits on fire‑and‑rehire and unfair dismissal. As such, businesses will need to plan restructures more carefully, bringing employment, corporate and insolvency teams together more often. There are also plans to introduce a new enforcement body, the Fair Work Agency, which will take over enforcement functions for minimum wage, labour exploitation and many other areas. A centralised regulator means closer scrutiny, so firms will support clients with compliance and any investigations.

Changes to employment laws are expected to increase costs for businesses. Initially, the price was set to be higher but later changes, such as scaling back unfair dismissal plans, cut estimated costs by up to £5 billion annually to around £1 billion per year. Nearly 78% of respondents believe the changes will hit growth, investment, jobs and discretionary employee benefits, signalling real financial pressure on employers, according to the CBI/Pertemps Employment Trends Survey 2025. As employers look for ways to manage these pressures – through restructures, benefit changes or contract reviews – demand for employment law advice is only set to rise.

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Economic outlook

The state of the economy is central to how businesses operate. PwC predicts that UK GDP will grow by 1.2% in 2026, with inflation peaking at 3.4%, before falling below the Bank of England’s (BOE) 2% target to 1.9%. This easing of inflation reflects slower price growth across both services and core goods. In response, the BOE is projected to lower interest rates slightly, from 3.75% to 3.5%. PwC has also forecast that the UK will be the third-fastest growing G7 economy, with strong opportunities emerging in IT, manufacturing and the creative industries. AI investment is expected to accelerate as adoption widens and new products are developed, contributing an estimated £2 billion directly to UK GDP in 2026. However, PwC warns that the UK’s manufactured goods market may continue to struggle, facing heightened competition from increasingly sophisticated Chinese products.

What does this mean for the profession?

The Law Society of England and Wales highlights that the legal sector brings together all parts of the economy, and itself contributes £60 billion annually. In 2025, the legal sector continued to grow, with PWC reporting that 95% of top 100 law firms achieved fee growth, putting the profession in a strong position heading into 2026.

But the picture isn’t uniform. Accounting firm Crowe’s research shows a growing divide: in 2025, City firms enjoyed a 12.12% rise in partner profits, while regional firms saw a 10.82% drop, hit harder by rising salaries, office costs and infrastructure spending.

NatWest’s survey of commercial and mid‑market firms paints a similar picture of mixed performance. Confidence across firms remains high, with 84% feeling positive about the future, although this marks a small decline from 90% the year before. Its findings also indicate that practice area performance is already diverging: private client, residential property and real estate teams reported stronger fee growth, while litigation, family law and transactional work were identified as more challenging areas in early 2026. With 89% of firms expecting fees to rise over the year, the profession appears cautiously optimistic. As the economic landscape evolves, firms can expect demand to shift unevenly across departments, with some practice areas naturally strengthening during downturns, while others grow quieter.

State of the courts

The courts continue to face significant pressure as 2026 begins, with court backlogs hitting 373,084 in the magistrates’ court and 79,619 in the crown court, as of 18 December 2025. The long backlogs are due to a number of factors, such as out-of-date infrastructure and a limited number of barristers in certain areas, such as criminal law.

In 2025, Deputy Prime Minister David Lammy proposed several reforms, such as reducing the number of jury trials and increasing out-of-court settlements like cautions. These ideas came from a review led by former Judge Sir Brian Leveson.

Check out our guide to the legal profession to find out more about the court backlogs and proposed reforms.

Meanwhile, the Online Procedure Rules – consulted on between December 2025 and January 2026 – aim to modernise and simplify digital processes across civil, family and tribunal cases. Law Society President Mark Evans called them “a positive first step” towards a more accessible digital justice system. In January 2026, the government also confirmed that four former Nightingale courts will become permanent parts of the court estate. Evans welcomed the move as a “sensible” step to help ease backlogs, although he stressed that lasting improvement will require sufficient judges, court staff and investment across the wider justice system.

What does this mean for the profession?

Backlogs and delays will continue to shape how lawyers run cases in 2026. Longer timelines mean more uncertainty for clients and periodic industrial action – such as Northern Ireland barristers withdrawing from crown court work over legal aid fees – is likely to add further strain.

The extent to which proposed reforms will alleviate stress n is yet to be seen. A new report by the Institute for Government found that, although judge‑only trials are around 20% faster on average, Lammy’s proposal would save less than 2% of total time across the crown courts, suggesting that such measures may have only a limited impact on existing backlogs.

Meanwhile, as Online Procedure Rules come into force, lawyers will need to adapt to more streamlined, digital‑first processes. This brings both challenges and opportunities: firms and chambers will need to stay on top of procedural updates, build digital capability and think carefully about access to justice issues.

AI and technology

AI has officially shifted from ‘tech trend’ to a core commercial issue for organisations of all shapes and sizes. Rapid advances in AI, automation tools and data‑driven systems are influencing how businesses operate, make decisions and manage risk. At the same time, regulators in the UK and internationally are becoming more active. The EU AI Act began to be enforced in phases from August 2024, while the UK is taking a sectoral approach, splitting regulation across multiple regulators rather than a single AI authority.

What does this mean for the profession?

As AI becomes part of almost every business function, lawyers will need to keep pace. An Institute for Business Value survey found that 93% of C‑suite executives believe having control over AI systems, data and infrastructure will be critical to their 2026 strategy. Lawyers will be expected to understand not only the legal risks associated with AI, but also how clients are using these tools in practice.

Meanwhile, law firms and chambers are figuring out how to use AI themselves. AI literacy is becoming an essential skill for lawyers. According to Thomson Reuters’ 2025 Future of Professionals Report, which surveyed 2,275 professionals, most of them drawn from the legal profession, 80% of respondents believe AI will have a high or transformational impact on their work within the next five years. This represents a three percentage point increase on the 2024 report. In practice, lawyers are already using AI most heavily in efficiency‑driven areas, such as:

• document review (77%);
• legal research (74%);
• document summarisation (74%); and
• drafting briefs (59%).

Of course, not everyone is sprinting towards AI just yet. Accuracy or data security is still a widespread concern for all firms. Among professionals who’ve yet to work with an AI tool, 50% cited concerns about the quality and usefulness of outputs, while 13% raised worries about data security. That means lawyers will be advising a mix of clients: some experimenting with cutting‑edge tools, others taking it slow, all of them looking for clear guidance on how to innovate safely.

What’s next?

As you look ahead to 2026 and beyond, the issues shaping the commercial world, from shifting global trade dynamics to tougher sustainability rules, evolving employment rights and the rise of AI, will increasingly shape the work lawyers do. For aspiring solicitors, this is an opportunity: understanding how these trends affect businesses will help you to stand out in applications, perform better in interviews and build confidence as you start your career.

If you’re looking to boost your commercial awareness, have a look at our Commercial awareness hub, sponsored by Mayer Brown International LLP, and for more detail on specific commercial issues check out our Commercial Questions – weekly articles written by law firms. 

Ellie Nicholl (she/her) is a senior content and engagement coordinator at LawCareers.Net.