Published by Global Banking & Finance Review®
Posted on January 6, 2026
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleUK businesses are slightly more optimistic post-budget, with increased investment willingness despite overall muted sentiment.
Jan 6 (Reuters) - British company executives became a little more optimistic following finance minister Rachel Reeves' budget and grew more willing to increase investment, although the mood overall stayed muted, a survey showed on Tuesday.
The quarterly net balance of business optimism from accountants Deloitte improved to -13% in the fourth quarter of 2025 from -24% in the third quarter, while remaining below average.
"Business sentiment is subdued but more positive than a year ago," Deloitte chief economist Ian Stewart.
Reeves announced 26 billion pounds ($35 billion) of tax hikes in November but delayed most of them and the increases were much less focused on businesses than in her first budget in 2024.
The Deloitte survey of 55 chief financial officers at major companies was conducted between December 2 and December 14.
Preliminary figures from last month's S&P Global Purchasing Managers' Index - another closely watched set of surveys - also painted a picture of tentative improvements in morale across British boardrooms.
"While CFOs remain cautious about geopolitics and productivity, business confidence and risk appetite have ticked up from their autumn lows and perceptions of external uncertainty have edged lower," Deloitte's Stewart said.
The proportion of executives who see raising capital expenditure as a strong priority rose to a two-and-a-half-year high of 17%.
A final version of December's PMI for the services sector is due later on Tuesday. Last week, the manufacturing index pointed to a tepid upturn in late 2025 for a sector that has struggled for momentum in recent years.
(Reporting by Andy Bruce; editing by David Milliken)
Business optimism refers to the overall confidence that business leaders have regarding the future performance of their companies and the economy. It can influence investment decisions and economic growth.
Capital expenditure (CapEx) is the funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. It is crucial for long-term growth.
A Chief Financial Officer (CFO) is the senior executive responsible for managing the financial actions of a company. This includes financial planning, risk management, record-keeping, and financial reporting.
A budget is a financial plan that outlines expected revenues and expenditures over a specific period. It helps organizations allocate resources effectively and manage their finances.
Explore more articles in the Finance category
