British companies are chiefly concerned about uncertainties over next month’s general election leading to caution over investment, according to a survey published by accountancy firm Deloitte today.

Deloitte released its findings from a quarterly survey of 108 chief financial officers (CFOs), including those at 21 companies listed on the FTSE 100, who listed their top risks to the outlook.

“Uncertainty over post-election policy change represents the greatest threat to UK business according to the chief financial officers of the UK’s largest companies,” Deloitte said in a report.

The group added that a net 53 per cent of executives are expected to increase capital expenditure over the next 12 months.

That contrasted with a peak of 80 per cent at the same stage one year ago.

Britons head to the polls on May 7 with Prime Minister David Cameron’s Conservatives virtually tied with the opposition Labour party, according to recent opinion polls.

“CFOs think the general election poses risks to what is seen as a benign policy environment,” Deloitte added.

“A clear majority of CFOs see the potential for adverse changes on regulation and taxation. And, on balance, the expectation is that post-election changes will be negative for fiscal, monetary and labour market policies.”

The second biggest risk, according to the survey, was uncertainty surrounding a future referendum on Britain’s membership of the European Union.

Deloitte added that the third biggest risk was given as deflation and economic weakness in the Euro Zone — and the possibility of a renewed Euro Zone crisis.

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