Lancashire Growth Hub Pulse | January 2026

20 snackable insights from the Lancashire business community

Lancashire’s Growth Hub, Boost, works closely each month with business support providers, private sector leaders, trade bodies and local authorities to gather intelligence on economic conditions, emerging trends and business needs across the county. 

Alongside 40 UK Growth Hubs, this intelligence informs a national report shared with government, and the wider Lancashire business support community. 

Written by Andrew Leeming, the Lancashire Growth Hub pulse captures a monthly snapshot of these insights and how businesses are performing on the ground. 

1. Founders are more cautious and commercially minded than last year

Pre-start entrepreneurs are prioritising validation, market testing and rigorous cashflow planning before registering their business. Support providers report that lean validation tools and business model canvas sessions are in higher demand than traditional business planning workshops.  

2. Expect new businesses hitting the airwaves in Q2

A noticeable January trend saw founders preparing for launches in March / April rather than immediate trading. Somewhat linked to the previous point, owners are using January and February to test pricing, create strong marketing strategies and build confidence. This reflects a more disciplined approach to risk than in previous years.  

3. January has been predicably quiet for some businesses

Retail and hospitality businesses reported a marked drop-off after December peaks. Cashflow smoothing and marketing planning became top priorities. Businesses that entered 2026 without strong customer engagement strategies and digital visibility found it harder to stabilise, even where footfall remained reasonable. 

4. Business registrations remain strong

Despite trading pressures, Lancashire’s startup pipeline remains resilient. January 2026 registrations increased to 1,251, up 2.46% year-on-year. Business closures fell sharply to 775, a 21.9% reduction compared to January 2025. This points to continued entrepreneurial momentum.

5. High costs as standard

Businesses are no longer treating higher costs as temporary. Wage inflation, insurance, compliance and supplier costs are being planned as a permanent fixture. This is driving more conservative decisions on recruitment, investment and expansion, even among businesses that are trading well.   

6. Startups looking at alternative staffing models in response to wage rises

New businesses are postponing their first hires in response to rising wage costs and wider employment overheads. Instead, many are increasing their use of freelancers, contractors and adoption of AI as alternatives to permanent recruitment.   

7. Sector performance is mixed

Professional services, health, wellbeing and aerospace are performing strongly in many areas. Hospitality and retail remain vulnerable, with profitability dependent on differentiation and cost control, rather than volume. Manufacturing is mixed with many firms operating below capacity but avoiding major job losses. 

8. Aerospace and defence remain a bright spot

Strong global demand continues to support aerospace supply chains. UK investment in Typhoon radar upgrades and export-led defence opportunities are all positive signals. For the Lancashire supply chain, the pipeline remains strong, though skills shortages and logistics costs still hold back growth. 

9. Performing Preston

Preston city centre outperformed national festive footfall trends, recording almost 3% growth over the Christmas period, alongside reductions in low-level crime and disorder. And The Harris exceeded visitor targets following its £19m redevelopment. In the first eight weeks, it welcomed 105,177 visitors. 

10. Business support trends 

Across the business support landscape, there is demand for short, practical sessions on pricing for profit, cashflow forecasting, AI marketing and CRM systems. Businesses are prioritising support that improves efficiency and protects margins with immediate effect. 

11. Owners looking for wellbeing support 

As business owners become more self-aware of fatigue, burnout and isolation, support environments that combine practical advice with peer confidence-building are proving valuable, acting as both a resilience tool and a performance enabler. 

12. Apprenticeship and degree apprenticeships are gaining momentum 

More employers are leaning into apprenticeships. Lancashire has recorded 3,310 apprenticeship starts in the latest academic year, with more expected. Degree Apprenticeships and KTPs are also being viewed as practical routes to long-term capacity. 

13. Hyndburn on a high 

Hyndburn is outperforming Lancashire, the North West and the UK in business birth rates. Business closures have fallen for the first time since 2020. In 2025/26, 186 businesses have been supported, including 39 startups. Hyndburn’s new Local Plan is also expected to be adopted by spring 2026, signalling fresh economic impetus. 

14. Demand for business spaces and employment land remains high 

Our partners continue to report strong demand for employment sites, premises and workspace. This is creating constraints for growing firms but also indicates underlying confidence. Hyndburn’s Local Plan includes provisions for 94.4 hectares of employment land to support future growth. 

15. Angel and early-stage investment activity is steady 

Fhunded continues to see strong demand, with founders preparing for investment and diversifying beyond software into areas like food manufacturing. However, investor risk appetite remains reduced, deals are taking longer and traction is being demanded earlier. Encouragingly, London-based VC firms are showing greater interest in Lancashire.   

16. Late payments and finance costs are a primary drag on cashflow

Several reports flag late payments and extended B2B terms as a recurring pressure for established small firms, alongside rising costs. This is increasingly shaping business behaviour, including delaying investment, tightening credit control and focussing on working capital stability rather than growth.

17. Leaders increasingly back on the tools

Partners report rising leadership strain featuring in a growing number of conversations with owners, with role creep becoming increasingly common. Leaders are absorbing some operational tasks due to staff shortages and underdeveloped middle management. 

18. University of Lancashire and Santander invest £100k in new partnership

University of Lancashire has launched a new partnership with Santander worth £100,000 over two years, aimed at improving employability and enterprise outcomes. It includes two £5,000 scholarships each year, plus student access to Santander Open Academy courses, grants and entrepreneurship resources to support pathways into work and business creation. 

19. Leyland Trucks opens 21 new apprenticeship roles for 2026

Leyland Trucks has launched its new apprenticeship recruitment drive, offering 21 new roles across engineering, manufacturing, operations and business support. The programme gives apprentices hands-on experience with advanced truck production technologies while gaining recognised qualifications, strengthening Lancashire’s long-term engineering and manufacturing skills pipeline. 

20. Demand for Boost support remains high

Boost handled 122 enquires in January, including returning clients and new businesses being set-up. The most common enquiries related to funding and premises, with increasing demand from retail, wholesale and the arts-based businesses.  

Springing forward

January’s intelligence shows a Lancashire economy that remains active but increasingly selective. New business creation remains strong, while we are seeing a continued investment in talent and skills. Demand for new property is growing - a good sign. 

At the same time, the fundamentals shaping business decisions are clear: higher costs are now embedded, late payments continue to hurt cashflow, and leadership capacity is being stretched. 

Through Boost and our partners, we will continue to focus on practical, high-impact support that helps Lancashire businesses protect margins, strengthen leadership, access talent and invest wisely with confidence as 2026 unfolds. 

👉www.boostbusinesslancashire.co.uk