The Home & Gift Association (HGA) has submitted a report to the Bank of England through the Genesis Initiative, highlighting the financial pressures currently facing businesses across the UK’s home, gift and stationery sectors
Drawing on feedback from members and industry representatives, the report says businesses are continuing to see consumer demand, but are facing increasing pressure on margins and cash flow as costs rise.
Key challenges identified include higher employment and wage costs, late payments and extended payment terms, increased energy, freight and logistics costs, growing compliance requirements, reduced retailer stockholding and uncertainty around international trade and manufacturing.
The HGA says opportunities remain in areas including affordable gifting, home accessories, exports, digital transformation and improving business productivity.
Gemma Sault, Managing Director of the HGA, said the sector was not facing a demand crisis, but that rising costs and cash-flow pressures were making it harder for SMEs to invest, recruit and grow.
Alongside its policy recommendations, the association has developed a six-month action plan for members, covering areas including cash-flow management, stock and inventory, margins, exports and market intelligence.
The HGA is calling for measures to improve late-payment enforcement, access to working capital and export support, while reducing unnecessary costs and regulatory burdens on SMEs.
The report was submitted in September and references the Bank of England’s Agents’ Summary of Business Conditions for September 2026.
 has submitted a report to the Bank of England through the Genesis Initiative){kind=link}