A new report from Deloitte reveals a sharp rise in cost concerns among UK finance leaders, while news emerges that UK Finance Minister Rachel Reeves is considering a tax increase targeting owners of high-value properties. Together, these developments signal a potential shift in both business and personal finance priorities as 2025 heads into its final quarter.
Tax Plans
According to the Financial Times, Finance Minister Rachel Reeves is reportedly preparing a tax raid on expensive homes as part of broader fiscal plans to balance the books. Though official details are still pending, insiders suggest the measure may involve changes to property taxes or the abolition of certain tax reliefs for high-value properties.
This aligns with Labour’s long-standing focus on wealth redistribution and could significantly impact wealthy homeowners in London and the South East.
While the measure is still under consideration, it adds another layer of uncertainty for high-net-worth individuals and property investors already navigating inflation, interest rate fluctuations, and political changes.
CFO Concerns
Parallel to this, the Deloitte Q3 2025 CFO Survey, conducted between 17th and 30th September, highlights growing anxiety within the UK corporate sector.
Key findings from the survey include:
| Concern Area | Key Statistic / Insight |
|---|---|
| Operating Costs | Net 84% of CFOs expect costs to rise—the highest in over four years |
| Margins | Net 47% expect a fall in operating margins |
| Wage Growth | Average wage growth of 3.5% over 12 months |
| Inflation Outlook | Expected at 3.2% in one year (vs 2.4% in 2024) |
Shifting Priorities
Deloitte’s UK Chief Economist, Ian Stewart, noted a shift in focus among CFOs:
“Geopolitical anxieties are starting to ease due to recent US trade deals, but domestic challenges—particularly rising costs and declining competitiveness—are becoming more pressing.”
CFOs have responded by prioritising cost reduction, cash control, and deleveraging over growth. Here’s how CFO strategies are evolving:
| Strategic Priority | Current Focus (%) |
|---|---|
| Cost Reduction | Top priority |
| Cash Flow Management | Second priority |
| Introducing New Products | 25% |
| Increasing Capital Expenditure | 12% |
| Growth via Acquisitions | 11% – lowest since 2010 |
Only during the early pandemic days was interest in acquisitions this low.
Risk Ranking
The survey also asked CFOs to rate 12 key risk areas on a scale of 0 to 100. Two top concerns tied for first place:
| Risk Factor | Average Risk Score |
|---|---|
| Poor UK Productivity/Competitiveness | 62 |
| Geopolitical Tensions | 62 (down from 71) |
This marks the highest concern level about UK productivity since Deloitte began tracking the issue in 2014.
Looking Ahead
With inflation still above the Bank of England’s 2% target and domestic cost pressures rising, businesses are pulling back on expansion and focusing on survival tactics. Meanwhile, property owners may need to brace for upcoming policy changes that could affect the value and tax treatment of high-end real estate.
Both the private and public finance landscapes in the UK appear set for further tightening, with no immediate relief in sight.
FAQs
Is there a new tax on expensive UK homes?
Reports suggest a possible tax hike, but it’s not confirmed yet.
Why are CFOs concerned in 2025?
Rising operating costs and weakening UK competitiveness.
How much are costs expected to rise?
Net 84% of CFOs expect higher costs in the next 12 months.
What’s the top concern for UK CFOs now?
Productivity and geopolitical risks are tied as top concerns.
Will OAS and CPP increase in 2025 too?
Yes, but only by modest inflation-indexed adjustments.
