normal growth is expected to be compressed into just a few months. This was reaffirmed by a recent survey conducted by accountancy firm Deloitte, which found that chief finance officers at big businesses in Britain are planning to increase investment and hiring at the fastest pace in about 7 years.
Of the 107 CFOs who participated in the poll, 71 per cent are expected to increase their capital expenditure with the support of the two-year tax break introduced for corporate investments, by British finance minister Rishi Sunak. Moreover, 76 per cent of the financial managers also expect more hiring over the coming year, in stark contrast to 2020, when cost reduction was a top priority of corporate executives.
Since the late 2000s, slow productivity growth has plagued Britain’s economy, weighing on its long-term growth potential, as well as the earnings of workers. Nevertheless, according to Deloitte, 80 per cent of the CFOs who took part in the survey expect productivity to grow faster following the pandemic. “That offers the hope of a more comprehensive recovery than after the global financial crisis,” Deloitte’s chief economist Ian Stewart said.
The multinational professional services network, headquartered in London, conducted the study between 16 and 29 June, in which a majority of the participants were from UK-listed companies with a combined market value of £548 billion (S$1.02 trillion).
