Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK firms less likely to borrow than at any time since financial crash

by January 3, 2023
January 3, 2023
UK firms less likely to borrow than at any time since financial crash

The UK’s leading companies are less inclined to borrow now than at any point since the financial crisis of 2008, a survey of directors has found.

Demand for credit is flagging among chief financial officers, with barely a quarter of those polled at FTSE 100 and FTSE 250 companies expecting to increase borrowing in the next year.

The quarterly survey by the accountancy firm Deloitte found CFOs now more reluctant to borrow from banks or issue debt than they had been since 2008. With the Bank of England having raised interest rates to 3.5%, about 70% of those questioned now rate credit as costly, and almost half said that new credit was hard to get.

Despite a turbulent year of rising inflation and supply chain disruption on top of rising interest rates, not all the sentiment among the businesses – including more than 50 UK-listed companies – was negative.

Deloitte found that the perception of external risks to businesses, particularly inflation, had eased since peaking earlier this year. Fears of disruption in supply chains, of labour shortages and even higher interest rates have also abated slightly, along with concern over energy prices that had soared since Russia’s invasion of Ukraine.

Only one in 10 CFOs said they expected significant supply disruption by 2024 – the most positive result for 18 months. Most expected inflation to fall sharply to just over 5% in a year.

Ian Stewart, chief economist at Deloitte, said: “The most aggressive tightening of monetary policy in more than 30 years is reshaping corporate attitudes to debt. Not since the credit crunch have CFOs rated debt as being less attractive as a source of finance for their businesses than they do today.

“When interest rates were at very low levels, debt finance easily eclipsed equity as a source of finance. CFOs now see them as being roughly on par.”

Although inflation in the last two years has surged to rates not seen for decades in the UK, Stewart said that the tide was turning, with a concomitant fall in concern over energy supply and prices.

He added: “CFOs’ perceptions of inflation risk have dropped from October’s peak and expectations for supply shortages, recruitment difficulties and inflation have eased.”

Read more:
UK firms less likely to borrow than at any time since financial crash

0
FacebookTwitterGoogle +Pinterest
previous post
Northern Ireland protocol in Brexit deal ‘too strict’ says Leo Varadkar
next post
Here Were The Top 10 Performing Industry Groups In Q4

You may also like

Buyers look to return to London as Rightmove...

December 21, 2022

UK’s first space launch of Virgin Orbit rocket...

January 10, 2023

The Main Goal in Web Development: Deliver Business...

December 14, 2023

Easyjet unveils “roadmap to net zero” by 2050...

September 27, 2022

Sameer Gehlaut to Raj Kotecha: 5 investors keeping...

October 6, 2022

Rishi Sunak shocked at runaway cost of HS2

September 26, 2023

Sterility test sample flawed, admits DHSC statistics expert...

June 26, 2025

BA’s UK staff and Boots hit by cyber...

June 5, 2023

Nico Rosberg Accelerates with €75m Venture Capital Fund...

April 14, 2024

Bike.Rent set to become the booking.com of the...

January 16, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Why I Signed the Economists’ Amicus Brief Challenging Trump’s Emergency Tariffs

      July 30, 2025
    • How Low Will UK Interest Rates Go and What Does it Mean for Investors?

      July 30, 2025
    • Schumer says century-old law forces Trump DOJ, FBI to release Jeffrey Epstein files by August deadline

      July 30, 2025
    • Agent’s alleged attempt to smuggle wife on Trump’s Scotland trip being probed in latest Secret Service fiasco

      July 30, 2025
    • Grassley rebukes Trump’s pressure to ‘have the courage’ to speed up nominations

      July 30, 2025
    • Who is Steve Ricchetti, the longtime Biden confidante questioned in Comer’s cover-up probe?

      July 30, 2025

    Categories

    • Business (8,619)
    • Investing (2,159)
    • Politics (16,246)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved