Deloitte’s latest survey of UK Chief Financial Officers (CFOs), conducted between 16 and 30 March 2026, shows confidence among the UK’s largest businesses has fallen to a six-year low.
CFO confidence fell to a net -57%1, from -13% in the previous quarter, with concerns around energy prices, inflation and interest rates surging in the wake of the situation in the Middle East. As has been the case for the last three years, CFOs reported that geopolitical developments represent the greatest external risk2 to their businesses.
Ian Stewart, chief economist at Deloitte UK said: “The conflict in the Middle East is reshaping business sentiment: it’s created a shock to CFO confidence, lowering optimism to levels we haven't seen since the early days of the COVID-19 pandemic. Finance leaders are coping with high levels of external uncertainty, and their focus is on managing risks from geopolitics, rising energy prices and higher financing costs.”
Consequences of adverse geopolitical developments
This quarter the survey repeated a set of questions asked at the same time last year, on how finance leaders see geopolitical risks impacting their own business.
When asked about the consequences of adverse geopolitical developments over the next three years, the top three concerns were energy costs (61%), inflation and interest rates (61%), and an increase in cyber-attacks (60%), rising from 44% last year.
Reducing costs and increasing cash flow remains top priority
CFOs have reacted to rising risk with a shift to more defensive financial strategies. Cost control and building up cash are at the top of the priority list3, while expectations for capital spending4 and hiring have flagged.
Ian Stewart commented: “Rarely in the last 16 years have UK CFOs been more focused on cost control than today. This challenging environment is prompting CFOs to scale back expectations for margins and sharpen their focus on cost reduction and cash conservation. The immediate priority for finance leaders is to strengthen balance sheets in the face of external headwinds.”