UK chief financial officers (CFO) see the UK as the most attractive investment destination, alongside India, according to Deloitte’s Q2 CFO survey.

Deloitte’s latest quarterly survey of CFOs found that a net 13 per cent described the UK as a very or somewhat attractive location for investment.

The findings are a contrast from the Q4 2024 survey, when the UK came in sixth place behind the US, India, the Middle East, emerging Europe, and Japan.

“These results reveal a shift in sentiment with the UK now viewed as a leading global investment destination,” said Deloitte UK senior partner and chief executive, Richard Houston.

“This renewed confidence, coupled with a rise in risk appetite, is welcome and underscores the considerable investment potential the UK offers.”

Deloitte also found there was an increase in business sentiment among CFOs in Q2 2025, with the index of business optimism rising to -11 per cent, compared to -14 per cent last quarter.

CFOs expected inflation to fall to 2.9 per cent by the middle of next year and that the Bank of England would lower its base rate to 3.75 per cent over the next 12 months.

In Q2 2025, CFOs showed an increase in risk appetite, with 17 per cent believing it was a good time to take greater risk onto their balance sheets, up from 12 per cent in Q1.

There was a slight tilt away from defensive strategies for the first time in a year, as CFOs were found to be more likely to give priority to expansionary strategies than they had been at any point since autumn 2023.

However, defensive strategies remained twice as likely to be a strong priority for CFOs than expansionary ones, at 41 per cent and 19 per cent respectively.

Geopolitical risk was rated as the top external risk to business for the eighth consecutive quarter, although the percentage of CFOs reporting that the level of external uncertainty facing their business was high or very high fell slightly from 46 per cent in Q1 to 44 per cent in Q2.

“Despite conflict in the Middle East and volatility in oil prices levels of concern about geopolitical risk fell slightly in the second quarter,” stated Deloitte UK chief economist, Ian Stewart.

“This may reflect an easing of concerns around trade in the light of the UK-US trade deal announced in early May.”

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