Beautiful Virgin Islands

Saturday, Apr 26, 2025

Economic Sentiment in the UK Challenges Chancellor Rachel Reeves

Economic Sentiment in the UK Challenges Chancellor Rachel Reeves

A Deloitte survey reveals rising pessimism among UK CFOs, intensifying pressure on the Chancellor amid borrowing cost concerns.
Rachel Reeves, the UK's Chancellor, is under increasing pressure following a recent report reflecting growing pessimism among the country’s chief financial officers (CFOs).

The quarterly survey conducted by Deloitte found that 26% of CFOs are more pessimistic about business prospects than they were three months prior, marking the first instance of net pessimism since June 2023, just before the UK entered a recession.

Deloitte’s survey results signal a critical period for the Chancellor, as executives express concerns over growing costs and a decline in hiring expectations, despite previous government promises to boost disposable income and employment.

Ian Stewart, Deloitte’s chief economist, remarked, “With cost control to the fore in the wake of the Budget, CFOs have trimmed expectations for corporate investment, discretionary spending, and hiring in the next 12 months.” This sentiment positions 2025 as a year of modest growth for the UK.

Despite the overall negative outlook, some CFOs anticipate economic growth improvements over the summer, potentially exceeding the eurozone’s performance supported by easing fiscal policies and interest rate reductions.

Inflation fears appear to be diminishing, positioning the UK as a relatively attractive investment opportunity compared to Europe, though not as appealing as the US.

Simultaneously, challenges mount for the Chancellor as the financial services sector struggles.

Morgan McKinley's report highlights an 18% reduction in City financial services jobs towards the end of last year, with a 12% annual decline attributed to economic volatility, geopolitical uncertainty, and technological disruptions.

As Mark Astbury from Morgan McKinley notes, this contraction suggests that issues in the sector predate recent budgetary measures.

Amid this backdrop, rising government borrowing costs have heightened concerns regarding the UK’s fiscal position.

Speaking from Beijing, where she is enhancing UK-China economic ties, Reeves reiterated the non-negotiable nature of her fiscal rules and expressed readiness to make adjustments if required.

Her visit also involved forging £600 million worth of economic agreements with China, underlining the significance of maintaining a balanced yet pragmatic relationship with the country.

Reeves' trip comes at a politically sensitive time, with opposition parties criticizing the decision to engage internationally amid domestic economic challenges.

Shadow Chancellor Mel Stride remarked on her absence during a crucial period for the UK market.

Meanwhile, Reeves continues to stress the importance of diplomatic and economic partnerships, particularly with China, amid opinions divided over potential national security risks.

As the Chancellor navigates these complex pressures, the UK government remains steadfast in its pledge to improve disposable incomes and employment, although the path forward necessitates careful adjustment to keep fiscal strategies aligned with national goals.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Trump administration moves to BAN essentially ALL artificial food dyes in the USA food supply at RFK Jr.'s direction
Woman slaps man at sports game and gets herself and husband beat up
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
Nightlife in the streets of Manchester
In God We Profit
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
US Federal Reserve Chair Issues Warning on Tariff Impact
UK Prison Officers Demand Electric Stun Guns Amid Safety Concerns
China, China, China!
Australian National Charged as Mercenary for Fighting in Ukraine
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Prince Andrew Joins Royal Family Attends Easter Sunday Service at Windsor Castle
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Here’s a police officer with a brilliant gift for swift education
"Some complain that we put thousands in prison. In reality, we set millions free."
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
UK Psytrance Festival Cancelled Amid Local Protests Over Noise Concerns
French Far-Right Writer Renaud Camus Denied Entry to UK
UK Police Force Updates Search Policy for Trans Individuals in Custody
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
Canada's Federal Party Leaders Engage in Final Debate Ahead of General Election
Ukraine and US Sign Outline of Minerals Deal
Fast Food Chain Refuses to Apologize for Online Comment About Katy Perry's Space Voyage
New York Attorney General Letitia James Faces Criminal Referral for Alleged Mortgage Fraud
Mark Cuban admits support for Trump executive order: ‘Gotta be honest’
US Senator Meets with Deported Immigrant in El Salvador Amid Custody Dispute
U.S. State Department Raises El Salvador’s Safety Ranking, Making It Safer Than France and Other European Nations
UK Government Assumes Control of British Steel's Scunthorpe Plant Amid Shutdown Threat
UK MP Wera Hobhouse Denied Entry to Hong Kong During Family Visit
Bangladesh Issues Arrest Warrant for UK MP Tulip Siddiq
China Urges United States to Cancel Tariffs Amid Escalating Trade Tensions
The Empire’s USD Pyramid Scheme Is Working Brilliantly—So Why ‘Fix’ It?
China Raises Tariffs on U.S. Goods to 125% Amid Escalating Trade Dispute
Elon Musk Reports $150 Billion in Projected Government Savings Amid Fraud Investigations
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
×