UK firms delay investments amid pre-autumn budget fears

New research indicates that 70% of UK financial leaders are postponing or cancelling planned investments due to uncertainties ahead of the Autumn Budget.

A survey conducted by Equals Money involved 400 senior financial decision makers from UK businesses with over 250 employees. The findings reveal that 90% of these leaders have experienced financial uncertainty this year, prompting a significant review of investment priorities.

Technology investment has emerged as a primary focus, with 63% of businesses surveyed aiming to enhance their technology expenditure. Conversely, spending on workplace social events has decreased or remained unchanged, also at 63%.

Future priorities for 2025 appear to be shifting away from employee wellbeing and ESG (Environmental, Social, Governance) initiatives, with only 14% of business leaders planning to prioritise these areas. ESG initiatives are particularly deprioritised in sectors such as finance and insurance (11%), business administration services (11%), technology (10%), and hospitality (6%). Similarly, employee wellbeing and benefits rank low in the manufacturing (11%), technology (10%), construction (8%), and hospitality (6%) sectors.

Top business priorities for 2025 focus on improving operational efficiency (26%), controlling costs (25%), leveraging artificial intelligence (22%), investing in technology and innovation (22%), and managing cash flow (21%).

Steve Paul, Deputy CFO at Equals Money, emphasised the challenges of managing business expenditure during uncertain times, stating, "Managing business spend is complex at the best of times, but when you throw in a new Government and an uncertain market, it only heightens the challenge. However, market uncertainty doesn't have to prevent businesses from growing. With the right tools in place, such as currency hedging and clear budget oversight, financial leaders can still make smart and safe investments. The research, however, highlights that too few companies are utilising the data available to them to help in this decision-making."

Despite 30% of companies rating data and financial insight as critical for all decisions and 58% using it regularly in decision making, only 45% utilise budgeting and forecasting software while 26% continue to depend on manual tracking methods. Nonetheless, 81% of companies intend to either adopt new or upgrade existing financial tools or software to enhance business expenditure management and financial visibility.

Steve Paul further commented, "Financial tools don't just help your accountancy department, they can add value across the entire business. While holding back spend for employee wellbeing or ESG initiatives might offer short-term cash-flow relief, these investments are often key to longer term goals. By sorting back-office functions and providing better budget clarity, financial leaders can offer more strategic consultancy across company-wide investment decisions."