UK Businesses to Cut Hiring and Control Costs at Record Rate – Guido Fawkes

UK Businesses to Cut Hiring and Control Costs at Record Rate

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Deloitte this morning released its closely-watched Q1 2025 CFO survey of 67 CFOs of companies with a combined UK market value of £427 billion. Conducted between 18 and 31 March, the results paint an increasingly shaky picture:

• CFOs expect the sharpest decline in corporate hiring since Q3 2020 over the next twelve months.
• Wage growth expected to slow from 3.6% to 3%.
• A net 30% say UK corporate capital expenditure will fall over the next 12 months.
• 58% say there will be a decline in discretionary spending.
• 63% say cost control now a ‘strong priority’ for their business. Second-highest on record…
• Risk appetite down – 12% report that now is a good time to take on more risk. Less than half the long-term average of 25%…
• A net 63% believe operating costs will increase over the next 12 months.
• A net 35% expect to see an increase in revenues.
• Inflation expectations up to 3.1% for next year from 2.5%.

Geopolitics as usual is given the highest risk rating for businesses – specifically tariffs, sanctions and restrictions to market access. While tariffs threaten growth potential Reeves ploughs on with her plan to tax and spend at the maximum possible level before raising taxes higher in the Autumn…