Finance directors in the United Kingdom are being forced to cut costs and reduce hiring because of sustained political uncertainty. 

According to survey by Deloitte, seven out of 10 of chief financial officers (CFOs) surveyed said they would reduce hiring in the next 12 months, while almost half will focus on trying to increase cash flow as their companies prepare for an unpredictable year ahead.

The survey which saw participation f 91 CFOs from UK found that that a renewed focus on cost control will be a strong priority for six in 10 of respondents over the next year, the highest level in 10 years. In fact, more CFOs are prioritizing cost reduction today than they were in late 2009, when the economy was emerging from recession.

"Perceptions of uncertainty are elevated and corporate risk appetite is vanishingly low," said Ian Stewart, Chief Economist at Deloitte. "The priority appears to be curbing costs, not expansion."

Only three percent of respondents said they expect to increase hiring over the next 12 months.

The UK's economy has been battered by uncertainty over its terms of leaving the European Union. Output shrank in the second quarter when businesses found themselves holding unnecessary stock that had built up before the original leaving date of March 29.

"With Brexit cited as the biggest risk businesses face, the last quarter has also seen heightened concern over slowing growth in the UK and Eurozone and CFOs are tightening their purse strings in response," Stewart said. The report said the resulting uncertainty was now entrenched, while domestic economic factors such as weak productivity and competitiveness are a growing concern.

With weak demand in Britain becoming the second biggest risk facing companies, expectations of an interest rate cut are also growing.