UK CFOs Shun U.S. Investment as Hiring Confidence Hits 13-Year Low

British companies are turning away from the United States and scaling back recruitment plans at home, two separate business surveys show. Deloitte’s latest poll of 66 chief financial officers found only a net 2% now regard the U.S. as an attractive investment destination, down sharply from 59% in late 2024, just before President Donald Trump took office. By contrast, the balance viewing the UK as appealing rose to 13% from minus 12%, placing it joint first with India. The shift comes amid uncertainty over U.S. trade policy and follows official data showing a fall in foreign direct investment into America earlier this year. At the same time, the domestic labour market is showing signs of stress. Accounting firm BDO’s Business Trends Barometer indicates employers’ hiring confidence has dropped to its lowest level since 2012, excluding the pandemic period. Firms cite April’s increase in employer National Insurance contributions—which adds roughly £20 billion a year to payroll costs—along with broader tax and cost pressures for holding back on recruitment, particularly in hospitality and seasonal roles. Taken together, the surveys suggest UK businesses are growing more cautious about overseas expansion while remaining wary of adding staff at home, presenting a challenge for Chancellor Rachel Reeves as she weighs further fiscal measures ahead of the autumn budget.