Britain’s top companies took a defensive turn in the lead-up to U.S. President Donald Trump’s tariff announcement on April 2, focusing heavily on cashflow, cost-cutting, and reducing debt,
according to a Deloitte survey released Monday.
Deloitte’s quarterly poll, conducted from March 18–31, found that while CFOs at major UK firms remained more optimistic than they were during the early days of COVID-19 or Russia’s invasion of Ukraine, their strategies have become markedly more cautious.
“Given the speculation surrounding U.S. tariffs during the survey period, it’s no surprise CFOs reported high levels of uncertainty,” said Amanda Tickel, Deloitte UK’s head of tax and trade policy.
Key findings from the survey:
- 63% of CFOs listed cost-cutting as a top priority, up from 52% three months prior — the second-highest level ever recorded.
- Only 20% prioritized growth through new products or market expansion, down from 25%.
- Hiring is expected to decline at the sharpest rate since late 2020.
- Wage growth is projected to slow to 3% over the next year.
Despite these cautious measures, businesses still anticipate tighter profit margins, as costs — driven by a sharp increase in payroll taxes and a nearly 7% hike in the minimum wage — are set to outpace revenue growth.
“Large UK businesses are bracing for turbulence,” Deloitte noted.
This comes as the UK’s budget forecasters recently slashed their 2025 economic growth outlook to 1%, down from earlier expectations of a public spending-driven rebound after a sluggish 2024.
The survey covered 67 CFOs from major companies, including 42 listed on the UK stock market, collectively representing 18% of total market capitalization. Photo by Gage Skidmore from Peoria, AZ, United States of America, Wikimedia commons.