Finance
Confidence Among Big UK Firms Plunges to Six-Year Low, Deloitte Says
Published by Global Banking & Finance Review®
Posted on April 12, 2026
3 min readLast updated: April 12, 2026
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A Deloitte survey shows confidence among Britain’s largest companies plunged to –57% in mid‑March, the lowest since Q1 2020, amid surging energy prices from the Iran war, rising inflation expectations (3.6%), and widespread cost‑cutting and hiring freezes.
UK Corporate Confidence at Six-Year Low as Firms Cut Costs, Deloitte Says
Corporate Sentiment and Cost-Cutting Trends in the UK
By Andy Bruce
Confidence Slumps Amid Global and Economic Pressures
April 13 (Reuters) - Confidence across Britain's biggest companies has slumped to its lowest since the start of the COVID-19 pandemic as the Iran war spurred worries over surging energy prices and higher interest rates, a survey showed on Monday.
The quarterly Deloitte survey of chief financial officers showed net confidence tumbled to -57% in the second half of March from -13% at the end of 2025, the lowest reading since the first quarter of 2020.
Cost-Cutting Measures Take Priority
Impact on Hiring and Investment
Companies were moving swiftly into cost-cutting mode at the expense of hiring, discretionary spending and investment, Deloitte said.
Finance minister Rachel Reeves had previously cited the Deloitte CFO survey as a gauge of corporate sentiment in Britain.
Rising Cost Pressures and Inflation Expectations
Business surveys from S&P Global nZRN00DLZQ showed growth in the private sector economy slowed to a crawl in March as cost pressures increased rapidly and public inflation expectations have also risen sharply nL1N40C143.
Deloitte said 61% of CFOs were "significantly concerned" about rising energy prices and inflation leading to higher interest rates.
Companies' expectations for inflation in a year's time rose to 3.6%, their highest level since the third quarter of 2023.
Expert Insights on the Challenging Environment
Focus on Cost Control
"Rarely in the last 16 years have UK CFOs been more focused on cost control than today," said Ian Stewart, chief economist at Deloitte UK.
"This challenging environment is prompting CFOs to scale back expectations for margins and sharpen their focus on cost reduction and cash conservation," Stewart added.
Labour Market and Hiring Outlook
Hiring Expectations Among CFOs
Deloitte found a net 79% of CFOs expected a fall in hiring over the next 12 months, up from 55% at the end of last year. It marked the highest share since the second quarter of 2020.
Recruitment Industry Perspective
However, a separate survey of recruitment companies from the Recruitment and Employment Confederation showed the labour market, while still weak, did not deteriorate last month despite the uncertainty of the Iran war.
"The Gulf conflict provided a headwind to hiring in March, but this did not stop the trend of stabilisation that has defined 2026 so far," said REC Chief Executive Neil Carberry.
Survey Details
Respondent Breakdown
Deloitte's survey of 79 CFOs spanned March 16-30 and included representatives from 12 FTSE 100 companies and 29 FTSE 250 firms. The remainder comprised large private firms, other listed companies or British subsidiaries of large multinationals.
Reporting Information
(Reporting by Andy Bruce; Editing by Alex Richardson)
Key Takeaways
- •Confidence among UK CFOs slumped to –57% in mid‑March—the lowest since early 2020 amid the Iran war and energy‑price shock
- •CFOs’ inflation outlook rose to 3.6%, and 61% cited energy‑price concerns prompting focus on cost‑control over hiring and investment
- •Private sector growth also lost momentum—S&P Global’s PMI fell to 51.0 in March, signalling slower expansion amid rising input costs
Frequently Asked Questions about Confidence among big UK firms plunges to six-year low, Deloitte says
1Why has corporate confidence in the UK dropped to a six-year low?
The Deloitte CFO survey attributes the decline to surging energy prices, inflation, higher interest rates, and geopolitical tensions like the Iran war.
2How are major UK companies responding to declining confidence?
Companies are cutting costs, reducing hiring, discretionary spending, and investment in response to economic uncertainty and higher costs.
3What percentage of CFOs expect a fall in hiring?
A net 79% of CFOs surveyed by Deloitte expect hiring to decline over the next 12 months, the highest share since early 2020.
4What are UK companies' expectations for inflation in the next year?
Companies expect inflation to be at 3.6% in a year's time, the highest level since the third quarter of 2023.
5Does the labour market continue to weaken amid declining corporate confidence?
Although confidence is low, a separate survey showed the labour market remained weak but did not deteriorate further in the most recent month.