Confidence among Britain’s largest companies has fallen to its lowest level since the start of the COVID-19 pandemic, as the conflict in the Middle East fuels concerns over rising energy costs and higher interest rates, according to a new survey by Deloitte.
The firm’s quarterly survey of chief financial officers showed net confidence dropped sharply to -57% in the second half of March, down from -13% at the end of 2025 — marking the weakest reading since early 2020.
Deloitte said companies are rapidly shifting into cost-cutting mode, reducing hiring, discretionary spending and investment as economic uncertainty grows.
The findings are closely watched by policymakers, with Finance Minister Rachel Reeves previously citing the survey as a key indicator of corporate sentiment in the UK.
Separate business surveys from S&P Global showed private sector growth slowed significantly in March, as cost pressures intensified and inflation expectations rose.
According to Deloitte, 61% of CFOs are now “significantly concerned” about rising energy prices and the risk of higher interest rates. Expectations for inflation in a year’s time have climbed to 3.6%, the highest level since the third quarter of 2023.
Ian Stewart, chief economist at Deloitte UK, said: “Rarely in the last 16 years have UK CFOs been more focused on cost control than today,” underscoring the cautious outlook among businesses.
