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UK Business Confidence Plummets to Pandemic Low
13 Apr
Summary
- UK business confidence hit lowest since early 2020.
- Firms shifting to cost-cutting, slashing hiring plans.
- Rising energy prices and inflation fuel concerns about interest rates.
Confidence across Britain's largest companies has plummeted to its lowest level since the beginning of the COVID-19 pandemic. A recent survey indicates that CFOs' net confidence dropped to -57% in the latter half of March, a significant decrease from -13% at the end of 2025. This challenging environment is prompting CFOs to scale back expectations for margins and sharpen their focus on cost reduction and cash conservation.
Businesses are rapidly adopting cost-cutting strategies, impacting hiring, discretionary spending, and investment. A substantial 61% of CFOs expressed significant concern over rising energy prices and inflation, which they anticipate will lead to higher interest rates. Expectations for inflation in the coming year have risen to 3.6%, the highest since the third quarter of 2023. Consequently, a net 79% of CFOs anticipate a fall in hiring over the next 12 months, a marked increase from previous sentiment.
