Britain’s top companies were already tightening their belts in anticipation of a worsening global economic outlook — even before President Trump’s tariff U-turns sent markets into a tailspin.
A new Deloitte survey of FTSE 350 finance chiefs, carried out at the end of March, shows that concern about geopolitical risk was at its highest level since Russia’s invasion of Ukraine. Fears about the health of the US economy — still the largest in the world — were also elevated.
Even ahead of Trump’s formal tariff announcement, UK companies had begun to slash costs at an unprecedented pace outside of pandemic conditions, the report found.
“It is unsurprising that chief financial officers reported elevated levels of uncertainty,” said Amanda Tickel, head of tax and trade policy at Deloitte UK. “Periods of trade uncertainty tend to result in a prolonged squeeze on investment.”
Tickel added that while some companies are preparing contingency plans, few are likely to restructure global supply chains or relocate production until there’s greater clarity on the outcome of ongoing trade negotiations.
While Trump’s 90-day tariff pause gave non-Chinese trade partners a temporary reprieve, anxiety has only grown amid the volatility in financial markets and the looming threat of further escalation.
Speaking on Sky News’s Electoral Dysfunction podcast, Baroness Harman, a former Labour frontbencher, accused the government of downplaying the severity of the situation.
“They need to show some judgment — it’s not OK for the largest economy in the world to wreak havoc, not just domestically but across the global economy,” she said.
In response, the UK government has announced a range of measures to support businesses, including a temporary suspension of import tariffs on 89 goods, such as juices, pasta and gardening tools — a move expected to save British firms £17 million a year.
Chancellor Rachel Reeves also unveiled a £20 billion boost to government-backed export finance, with £10 billion earmarked for businesses directly impacted by the trade disruption.
Still, a YouGov survey for Price Bailey revealed that domestic tax policy and inflation are bigger worries for UK business leaders than international trade.
In the poll, 38% of business leaders cited inflation and interest rates as their top concern, followed by 34% who flagged the overall tax burden. Only 32% prioritised securing a highly skilled workforce, while fewer still ranked international trade as a pressing issue — in contrast with MPs, who placed greater importance on trade and talent.
According to Deloitte, the vast majority of CFOs have now adopted a “defensive strategy” in response to the economic and geopolitical backdrop.
A staggering 63% of respondents said cutting costs was a key priority for the year ahead — the highest level since the early days of the pandemic. Other top priorities included reducing debt and boosting cashflow, as companies focus on resilience over expansion.
With uncertainty from Washington, Westminster and beyond, Britain’s finance chiefs are preparing for more turbulence ahead — and battening down the hatches to ride out the storm.
