CFO Network Quarterly Update – December 2025

The final quarter of 2025 has shown a market characterised by cautious progression against a backdrop of political and fiscal uncertainty. While executive finance recruitment activity remained steady overall, the lead-up to the Budget announcement created a noticeable hesitancy in some boardrooms. Many businesses paused non-essential hiring decisions in November and December, opting to await clarity on taxation and spending measures expected in Budget ’26.

Despite this, Yorkshire and the East Midlands continued to demonstrate underlying resilience. The region delivered almost 100 executive finance appointments during Q4, reflecting a stable flow of activity even in a stop–start environment. The balance of private equity privately owned and growth-driven businesses ensured that demand continued, albeit with longer decision cycles and a measurable emphasis on candidate quality and cultural fit.

As always, our insight comes not only from confirmed appointments but also from daily conversations across our CFO community, investors, advisors and business leaders. These lived experiences anchor the data in reality and provide a grounded view of market sentiment heading into 2026.

Key Headlines from Q4 2025

• 89 CFO and Finance Director appointments across Yorkshire and the Midlands.
• Decision-making cycles slowed in November/December as organisations awaited Budget clarity.
• Underlying demand remains solid, driven by ownership transition, business change, and appetite for stronger financial stewardship.

Gender Diversity

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This quarter, 21% of CFO and FD appointments were female, compared with 28% in Q3. The proportion is lower than the three-year average. We will look to the results in the next two quarters to see a response that levels this out hopefully.

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The Hot Sectors

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The sectoral distribution of appointments this quarter highlights continued strength in core industries:

• Manufacturing & Engineering – 26%
• Technology – 16%
• Healthcare – 7%

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Market Context and Sentiment

The most defining feature of Q4 was hesitancy. The anticipated fiscal tightening in Budget ’26 shaped boardroom behaviour, particularly in sectors with exposure to government spending, discretionary consumer demand or cost-intensive transformation programmes.

Three themes were particularly pronounced:

1. Budget-related caution

Organisations deferred or slowed down senior hiring processes, focusing on essential appointments only. Several planned Finance Director searches shifted into early 2026 pipelines as boards sought clarity on tax policy, incentives and spending plans.

2. A flight to quality

Where roles did progress, employers placed greater emphasis on strategic capability, cash discipline and transformation experience – with an increasing expectation that finance leaders must be able to model, scenario-plan and respond quickly to shifting economic conditions.

3. Strong candidate engagement

Candidate activity remained high, with many CFOs and FDs reassessing their positions ahead of expected economic change. This provided businesses with broader choice, but also increased complexity as motivations diverged between progression, stability and flexibility.

Interim & Fractional Market

Interim demand continued its upward trajectory through Q4, driven by:

• Delayed permanent decisions pending Budget clarity.
• Leadership gaps arising from unplanned departures.
• Short-term planning and cost reviews.
• Continued appetite for specialist change and integration expertise.

Fractional engagements also remained strong, particularly among early-stage and scale-up organisations not yet structured for a full-time CFO. This segment of the market continues to mature, reinforcing its place as a mainstream leadership model.

Our Outlook for Early 2026

While caution defined Q4, the fundamentals of regional demand for senior finance leadership remain healthy. As Budget ’26 moves from anticipation to reality, we expect:

• Rebound activity in Q1, as delayed processes restart.
• Increased focus on cash, forecasting accuracy and operational discipline.
• Continued growth in fractional and interim solutions, particularly for transformation and pre-transaction scenarios.
• Ongoing but gradual progress on gender diversity, reflecting the expanding pipeline of emerging female finance leaders.

Yorkshire and the East Midlands continue to show resilience, with a market driven by long-term structural needs rather than short-term sentiment. For many organisations, 2026 will be about clarity, alignment and decisive investment in leadership capability.