Chief financial officers at major British companies are the most worried about competitiveness and productivity in at least 11 years, according to a survey that echoed other measures of corporate concern ahead of finance minister Rachel Reeves’ budget.
The survey, published by accountancy firm Deloitte on Monday, did show geopolitical concerns had eased from earlier in 2025 after U.S. President Donald Trump agreed a string of bilateral trade deals to soften the impact of his import tariffs.
But the worries about competitiveness and productivity in the July-to-September period were the highest since Deloitte began asking CFOs about them in 2014 and now rank on a par with concerns about geopolitics.
The Bank of England expects inflation hit 4% in September – double its target and the highest among major rich economies – while annual wage growth, though slowing, remains much higher than its pre-pandemic pace at nearly 5%.
“CFOs have responded by strengthening balance sheets through a focus on cost control, building cash reserves, and reducing debt,” Ian Stewart, chief economist at Deloitte UK, said.
The survey did not ask specifically about tax policies. These have become a big worry for employers after they were hit by an increase in social security contributions in Reeves’ first budget last year, according to other business surveys.
Deloitte found a net 84% of finance leaders expected operating costs to rise over the next 12 months, the highest level in more than four years.
Reeves is expected to raise taxes again on November 26 as she tries to stay on track to meet her targets for improving the public finances.
Deloitte’s survey was conducted between September 17 and September 30. Of the 68 participating CFOs, 11 were from FTSE 100 companies and 24 from FTSE 250 companies, while others were from the British subsidiaries of large multinational companies.
Another report produced by rival accountancy firm BDO showed businesses delayed hiring in September due to rising costs and uncertainty ahead of November’s budget.
However, BDO’s gauge of corporate optimism increased slightly on stronger order books and hopes of U.S. investment.
(Writing by William Schomberg; editing by David Milliken)
