UK, previously the sixth most preferred destination for global investments, rose to the first place alongside India after Prime Minister Keir Starmer struck a trade deal with the United States
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The United Kingdom has emerged as one of the most attractive destinations for global investment alongside India, according to Deloitte’s latest Q2 CFO survey.
In a marked turnaround from its sixth-place ranking in the final quarter of 2024, the UK now ranks joint first with India as the most appealing country for investment. A net 13 per cent of UK chief financial officers described the country as “very or somewhat attractive” for investment.
The upward move has come after UK Prime Minister Keir Starmer struck a trade deal with the United States. Ian Stewart, chief economist at Deloitte UK, noted that while global uncertainties persist, there was a small easing in concern following the UK‑US trade agreement reached in early May.
Richard Houston, chief executive of Deloitte UK, said the results reflect a notable shift in sentiment: “These results reveal a shift in sentiment with the UK now viewed as a leading global investment destination. This renewed confidence, coupled with a rise in risk appetite, is welcome and underscores the considerable investment potential the UK offers”.
CFOs show growing risk appetite
Fewer UK businesses are adopting defensive strategies for the first time in a year. About 17 per cent of CFOs say now is a good time to take on extra risk—up from 12 per cent last quarter.
Despite continued caution, defensive measures remain twice as likely to be prioritised as expansionary ones. Expansionary strategies, such as new product launches or entering new markets, are now a higher priority for 19 per cent of CFOs, whereas 41 per cent favour defensive approaches.
Broader business optimism and geopolitical risk
Overall business confidence improved, with the index of optimism rising to –11 per cent from –14 per cent in the previous quarter.
CFOs also expect inflation to ease to 2.9 per cent by mid‑2026 and foresee a reduction in the Bank of England’s base rate to around 3.75 per cent over the next year
Geopolitical threats remain the chief concern among finance leaders, with eight consecutive quarters placing it atop their risk rankings, though the weighted risk score dropped slightly to 71 from 74.