Major British companies are preparing to tighten spending as concerns over inflation, borrowing costs and economic uncertainty weigh on business confidence, according to a new Deloitte survey published on 14 October 2026.

The survey found that 68% of chief financial officers (CFOs) consider cost reduction a major priority over the next 12 months, compared with 53% in the previous quarterly survey. The findings suggest that businesses are placing greater emphasis on protecting margins and managing operating expenses.

Inflation and Interest Rates Add Pressure

The survey of 66 finance chiefs, including executives from FTSE 100 and FTSE 250 companies, showed that respondents expect UK inflation to reach 3.4% over the next year, up from their previous expectation of 3%.

CFOs also expect the Bank of England's key interest rate to reach 4% over the same period, compared with its current 3.75% rate at the time of the survey. The cost of credit has also become a growing concern for businesses.

Businesses Focus on Efficiency and Financial Resilience

Companies facing higher costs may look more closely at procurement, staffing budgets, investment plans and operational efficiency. However, individual businesses will make different decisions depending on their financial position and growth prospects.

Geopolitical instability was identified as a leading business risk in the survey, while the prospect of further interest-rate increases in the UK and United States was another major concern.

The findings underline the challenges facing British businesses as they plan budgets and investment for the year ahead. How companies balance cost control with investment and job creation will be an important issue for the UK economy.