UK CFOs Optimistic Following General Election: Deloitte CFO Survey Results

The latest Deloitte CFO survey reveals that corporate risk appetite among UK CFOs has experienced its biggest rise in more than four years following the general election. CFO perceptions of external uncertainty have also fallen to the lowest level in more than eight years, leading to an increase in business confidence among finance leaders for the fourth consecutive quarter.

Finance chiefs are more optimistic about the prospects for their own businesses, with a net 23% expressing positivity about their financial prospects compared to the previous quarter. This shift in sentiment is attributed to the new government’s focus on growth and stability, which has increased corporate confidence.

According to Richard Houston, senior partner and chief executive of Deloitte UK, there is a clear desire among business leaders for industrial policy to be a top economic priority for the new government. CFOs believe that working in partnership to unlock growth and drive productivity will be crucial for delivering an inclusive and sustainable future for the UK.

The survey also highlights a significant rise in CFOs’ expectations for corporate revenue growth, reaching their highest level in two-and-a-half years. This positive outlook is supported by a decrease in perceptions of uncertainty and an improved business environment.

While reducing costs and increasing cashflow remain top priorities for finance leaders, the focus on increasing cashflow is at its lowest level in almost two years. CFOs have also reported an improvement in credit conditions, with credit being more available than at any time in the last two years.

Geopolitics remains the top risk for business according to CFOs, with concerns around geopolitical risks worldwide and forthcoming elections. However, the survey indicates that the majority of CFOs believe the recent general election will have little to no impact on their plans for capital expenditure, deal-making, or hiring over the next year.

Looking ahead, CFOs suggest that the new government should prioritize industrial strategy and planning reform to boost UK growth and productivity. The survey findings reflect a positive shift in sentiment among finance leaders, signaling a readiness for growth and a more optimistic outlook for the future.