FILE PHOTO: Britain's Prime Minister Keir Starmer speaks as he participates in a bilaterla meeting with Secretary General of NATO Jens Stoltenberg, during NATO's 75th anniversary summit, in Washington, U.S. July 10, 2024. REUTERS/Nathan Howard/File Photo
LONDON: Uncertainty felt by British business leaders collapsed to the lowest level since before the 2016 Brexit vote after Prime Minister Keir Starmer’s landslide election victory, a survey shows.
The quarterly Deloitte survey of chief financial officers showed 23% of large British companies reported high or very high uncertainty, down from 36% in the previous survey and the lowest reading since late 2015.
The report also pointed to rising optimism around financial prospects, adding to early signs of a pickup in business sentiment since the July 4 victory for the Labour Party.
“We’ve seen a significant shift in risk appetite post the general election and the new government’s focus on growth and stability is already increasing corporate confidence,” Richard Houston, chief executive of Deloitte UK, said.
The findings are likely to be welcomed by Finance Minister Rachel Reeves, although the Deloitte report also highlighted the challenge she faces in unlocking the private sector investment which is key to Labour’s ambitions of faster economic growth.
Asked about the election result, 21% of companies surveyed by Deloitte said it would boost plans for investment, deal-making and hiring, against 11% who said it would detract. More than two thirds predicted little or no change.
Most of the companies surveyed between July 9 and 19 cited cost reduction as a greater priority than expansion or investment. — Reuters
