Tuesday 6th January, 2015

According to Deloitte’s CFO Survey, uncertainty at home and economic and geopolitical risks overseas are the central challenges facing chief financial officers (CFOs) from the UK’s largest companies as they enter 2015.

When asked to rate the level of risk posed between 0 and 100, CFOs attached a 63 rating to the General Election and 56 to deflation and weakness in the Euro area and to a possible referendum on the UK’s membership of the EU.

Despite uncertainties, CFOs are upbeat about prospects for UK earnings growth and business investment in 2015. On average, CFOs expect earnings in their businesses to rise by 2.9% in 2015.

On average CFOs expect their investment in the UK to rise by 9% in 2015, following growth of about 8% in 2014.

Ian Stewart, chief economist at Deloitte, said:

"Concerns about policy change after May’s General Election have risen significantly and this is seen as the biggest risk facing UK business in 2015."

He added, "CFOs expect 2015 to be a year of investment and of recovering real earnings in the UK. Corporate and consumer spending look set to lend the UK economy important support, suggesting the UK will post decent growth through 2015."

The survey gauged the views of 119 CFOs of FTSE 350 and other large private UK companies.