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Home & Gift Association Calls for Action on Cash Flow and Cost Pressures Following Submission to Bank of England
.png "Bank of England and The Genesis Initiative Update")
HOME & GIFT ASSOCIATION
Home & Gift Association Calls for Action on Cash Flow and Cost Pressures Following Submission to Bank of England
New industry report reveals sector is facing a margin and cash-flow crisis, not a demand crisis
The Home & Gift Association has submitted a comprehensive report to the Bank of England through The Genesis Initiative, highlighting the key challenges and opportunities facing businesses across the UK home, gift and stationery sectors.
Drawing on feedback from our industry champions, members and recent economic intelligence, the report concludes that while consumer demand remains present, businesses are increasingly struggling with rising costs, squeezed margins and growing cash-flow pressures.
The sector is facing a margin and cash-flow crisis, not a demand crisis.
The report aligns with findings from the Bank of England's Agents' Summary of Business Conditions – September 2026, which identified a mixed economic outlook with subdued consumer spending, improving manufactured exports and modest growth in business investment intentions.
According to the Home & Gift Association, many businesses continue to report stable or growing sales but are finding it increasingly difficult to convert revenue into profit as costs continue to rise across employment, energy, freight, compliance, insurance and trade show participation.
Sector Facing Growing Cost Burden
The report highlights several critical challenges affecting businesses across the sector, including:
KEY CHALLENGES
- Rising Employer National Insurance contributions and wage costs.
- Late payments and extended payment terms affecting SME liquidity.
- Increased energy, freight and logistics costs.
- Growing compliance and regulatory burdens.
- Reduced retailer stockholding and shorter purchasing cycles.
- Ongoing uncertainty surrounding international trade and manufacturing competitiveness.
At the same time, members reported that opportunities remain strong in affordable gifting, home accessories, export growth, digital transformation and business productivity improvements.
Industry Voice Reaching Policymakers
Gemma Sault, Managing Director of the Home & Gift Association, said:
GEMMA SAULT · MANAGING DIRECTOR
"Our message is clear. The sector is not facing a demand crisis. Consumers are still buying, retailers are still looking for innovative products and businesses remain ambitious. However, rising costs and cash-flow pressures are making it increasingly difficult for many SMEs to invest, recruit and grow.
Through our work with the Genesis Initiative, we have ensured that the voice of the Home & Gift sector has been shared directly with the Bank of England and policymakers. We want decision-makers to understand the real pressures facing product-based businesses and the practical steps that would support growth across our sector."
Practical Support for Members
Alongside its policy recommendations, the Home & Gift Association has developed a six-month action plan to help members strengthen cash flow, protect margins and identify growth opportunities ahead of 2027.
The Association will publish the full report on its website and provide members with:
PRACTICAL SUPPORT FOR MEMBERS
- Practical cash-flow guidance.
- Stock and inventory management advice.
- Margin improvement strategies.
- Export growth recommendations.
- Market intelligence and economic insights.
- A six-month business action plan.
Gemma Sault added:
"As the industry's growth partner, our role is not only to advocate on behalf of businesses but also to provide practical support. We will be sharing the findings from this report with our members and providing advice and tools to help businesses navigate the challenges ahead whilst positioning themselves for future growth."
Key Message
The Home & Gift Association's report concludes that the sector remains resilient, innovative and optimistic but requires improved liquidity, proportionate costs and stronger confidence to unlock its full growth potential.
The Association is calling for action to strengthen late-payment enforcement, improve access to working capital, support exports, reduce unnecessary burdens on SMEs and protect UK manufacturing competitiveness.
THE CALL FOR ACTION
The Association is calling for action to strengthen late-payment enforcement, improve access to working capital, support exports, reduce unnecessary burdens on SMEs and protect UK manufacturing competitiveness.
Notes to Editors
The Home & Gift Association represents businesses across the UK's home, gift and stationery sectors, supporting manufacturers, suppliers, retailers, designers and service providers.
The report was submitted to the Bank of England through the Genesis Initiative in September 2026 and incorporates member feedback from across the industry alongside analysis of economic conditions and sector performance.
The findings also reference the Bank of England's Agents' Summary of Business Conditions – September 2026, published on 11 September 2026.
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