Deloitte's CFO Survey | UK finance leaders report rising cost pressures

Deloitte CFO Survey: UK finance leaders report rising cost pressures

• CFOs see costs rising at the fastest rate in over four years;
• Geopolitical concerns for finance leaders ease, while worries around UK competitiveness and productivity increase;
• Cost reduction and cash control are top two priorities for CFOs for the coming 12 months.

Deloitte’s latest survey of UK Chief Financial Officers (CFOs) – which took place between 17^th and 30^th September – shows that CFO expectations for operating costs have risen to the highest level in more than four years. A net¹ 84% of finance leaders expect operating costs to rise over the next 12 months.

Growing concerns over productivity

Geopolitics has rated as a top concern for CFOs in all but two quarters since the invasion of Ukraine. However, CFOs now attach a slightly lower risk rating to geopolitics, with an average score of 62, down from 71 in the previous quarter.

Meanwhile concerns about UK productivity and competitiveness have risen to the highest level since Deloitte began asking this question in 2014 and now rank joint first with geopolitics on the CFO risk list², with a weighted average³ rating of 62.

Ian Stewart, chief economist at Deloitte UK, said: “The focus for CFOs has shifted, with geopolitical anxieties, a dominant concern for some time, moderating in the wake of a series of US trade deals. Domestic challenges have moved centre stage, with costs rising and mounting concerns about UK competitiveness. CFOs have responded by strengthening balance sheets through a focus on cost control, building cash reserves, and reducing debt."

Margins set to decline

A net 47% of CFOs expect to see a fall in operating margins over the coming 12 months, the highest reading since Q2 2023 where it was 57%.

CFOs report a slight acceleration in wage growth, with average wages at their own businesses rising 3.5% over the past 12 months.

Finance leaders also expect inflation to stand at 3.2% in a year’s time, an increase from their average expectation at this time last year, which was 2.4%.

Cost control remains top priority

Finance chiefs continue to assume a defensive strategy stance, with cost reduction and cash control their top two priorities for the coming 12 months. CFOs have shifted away from expansionary strategies, with a lesser focus on introducing new products or services (25%), increasing capex (12%) and expanding by acquisition (11%). The proportion of CFOs who report that expanding by acquisition is a strong priority is, with the exception of the early days of the pandemic, at its lowest level since at least 2010.

- Ends -   

Note to editors     

¹ A number of the Deloitte CFO survey findings are presented in terms of net balances – standard practice with surveys conducted by many central banks. In the case of operating costs expectations, CFOs were asked whether they expect operating costs for UK corporates to increase or decrease (or remain unchanged) over the next 12 months. The net balance (net 84%) was then computed by subtracting the percentage of CFOs who expect costs to decrease from the percentage who expect an increase. Net balances can be negative or positive. In the case of CFO cost expectations, a negative reading implies a greater proportion of CFOs expect reductions in operating costs rather than an increase. Throughout this press release and the survey report, net percentages indicate where net balances are used to present findings. 

² The 12 risk areas tracked in the survey are:     

• Rising geopolitical risks worldwide including greater protectionism
• Poor productivity/weak competitiveness in the UK economy  
• Higher energy prices or disruption to energy supplies
• Persistent labour shortages
• The risk of higher inflation and/or a bubble in housing and other real and financial assets 
• The prospect of further rate rises and a general tightening of monetary conditions in the UK and US
• Long-term effects of climate change
• Economic weakness and/or volatility in US growth 
• Medium-term supply chain disruption
• Deflation and economic weakness in the euro area, and the possibility of a renewed euro crisis 
• Effects of Brexit/deterioration in UK-EU relations 
• Weakness and/or volatility in emerging markets    

³ Weighted average ratings on a scale of 0-100 where 0 stands for no risk and 100 stands for the highest possible risk. 

About the survey      

Conducted between 17th and 30th September 2025, the Q3 2025 Survey is the 73rd quarterly survey of Chief Financial Officers and Group Finance Directors of major companies in the UK.

Overall, 68 CFOs participated, including the CFOs of 11 FTSE 100 companies and 24 FTSE 250 companies. The rest were CFOs of other UK listed companies, large private companies and UK subsidiaries of major companies listed overseas. The combined market value of the 39 UK-listed companies surveyed is £351 billion, or approximately 12% of the quoted UK equity market.

The Deloitte CFO Survey is the only survey of major corporate users of capital that gauges attitudes to valuations, risk and financing.

For copies of previous CFO surveys, please see here.