Going into 2025, charities continue to face a myriad of challenges in an uncertain environment. Financial pressures remain, particularly in light of the measures in the autumn budget. For many, charitable need and demand are also rising. Clear leadership and focus are vital and may make the difference in these circumstances, akin to a confident pilot in the face of turbulence.
The Office for National Statistics (ONS) estimated that the monthly gross domestic product (GDP) increased by 0.1% in November 2024, although in net terms growth remained flat for the three months to November. The ONS also reported that the consumer prices index (CPI) slowed to 2.5% in December 2025, down from 2.6% the previous month. This was a surprise drop and 0.1 percentage points below consensus expectations, although this cooling of inflation will be welcomed.
PwC’s 28th UK CEO Survey showed that there is the intention and the need to make change, and to connect short-term actions with longer-term outcomes. Navigating multiple time horizons, dealing with today’s challenges while focusing on people, culture and technology is not easy but will enable a sustainable future.
Window of opportunity
There is a window of opportunity to make transformative change towards a long-term future vision, one which must be shaped with agility in mind and an ability to anticipate and adapt for multiple scenarios. There needs to be a clear roadmap, and this will only be successfully delivered with people who are motivated and ready to make it work. Technology also has a critical role in enabling change and investment in time and resources will be needed. These need to work in tandem, and the development of skills, culture and behaviour needed for tech-powered success should be seen as connected areas of focus.
Generative artificial intelligence (GenAI) has also had a significant immediate impact on efficiency, as people find they can now do some tasks more quickly. As the use of this technology evolves, it will be interesting to see the scale and pace of change with GenAI.
UK CEOs expressed optimism about the UK economy but there is no room for complacency. A transformative leap towards long-term growth and sustained resilience will make a considerable impact on the economic outlook.
These insights are equally applicable to charities as they are to businesses. The collaboration between the public sector, third sector and private sector will also continue to be important. Now is the time to be bold and brave and be fit for the future.
Daniel Chan is partner and charities leader at PwC
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