UK CFOs flag record competitiveness fears ahead of Reeves’s tax-heavy budget | investingLive

Chief financial officers at major UK firms are more anxious about competitiveness and productivity than at any point since 2014, according to Deloitte’s latest quarterly CFO survey — a sign of mounting business unease ahead of Chancellor Rachel Reeves’s November budget.

Reuters with the info.

The July–September poll showed corporate worries over competitiveness now rival geopolitical risks, even as global tensions eased after US President Donald Trump’s new trade deals softened the impact of his tariff measures.

CFOs are prioritising cost-cutting, cash preservation, and debt reduction, Deloitte’s UK chief economist Ian Stewart said.

While the survey didn’t directly ask about tax policy, businesses remain wary following last year’s rise in social security contributions, and many expect Reeves to raise taxes again on November 26 to meet fiscal goals. A record 84% of CFOs foresee operating costs climbing in the coming year — the highest reading in more than four years.

A separate BDO report found firms slowed hiring in September amid cost pressures and budget uncertainty, though optimism improved slightly thanks to stronger order books and expectations of increased US investment.

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The findings highlight deepening corporate caution ahead of the UK budget, with expectations of further tax hikes and sticky inflation likely to weigh on investment and hiring in coming quarters.