UK Interim Finance Report 2026

The state of the interim finance market, with a focus on the Midlands

Tierpoint Partners · Data as at 23 September 2026

Introduction

After several years of economic uncertainty, cautious hiring and slow decision-making, analysis of the Institute of Interim Management's 2026 survey points to a market that is beginning to stabilise. Organisations are starting to act on the transformation priorities, leadership gaps and critical projects they had previously deferred. Stanton House

This report draws together recent published research from Deloitte, KPMG, PwC, the ICAEW, NatWest, the Recruitment and Employment Confederation (REC) and the Institute of Interim Management. It sets out what the data shows about demand for interim finance professionals across the UK and the Midlands, where that demand is growing, and the pressures on finance leaders for the rest of 2026.

Key findings

Flexible resourcing has led the recovery in hiring. Temporary billings have risen for five consecutive months, and in August permanent placements increased for the first time since late 2022. KPMG

Finance is one of the few areas where permanent demand is growing. Accounting and financial roles were one of only two job categories, alongside engineering, in which permanent vacancies rose in August. KPMG

The interim market is stabilising rather than booming. Average assignment length has risen to ten months. Average day rates edged up 1% to £907, and private sector rates exceeded £1,000 for the first time. Stanton House

The Midlands remains a significant centre for investment. Private equity deal volumes fell 10% in the first half of 2026, but the region held its position as the UK's third-largest regional hub for private equity investment, behind London and the North West. Greaterbirminghamchambers

Confidence has recovered, but financial discipline has not relaxed. CFO confidence fell sharply in the spring. By July, CFOs reported that uncertainty had eased, but cost reduction and cash control remain their priorities. DeloitteDeloitte

1. The UK market: from deferral to decision

The year began with a shock. Deloitte's CFO Survey for the first quarter, conducted in late March, recorded CFO confidence falling to a net -57%, a six-year low. Concerns over energy prices, inflation and interest rates had risen after the escalation in the Middle East, and a net 79% of CFOs expected UK corporates to reduce hiring. The ICAEW's Business Confidence Monitor fell to -14.6 in the second quarter, its lowest reading since late 2022 and its sixth consecutive quarter in negative territory. DeloitteICAEW

By July, sentiment among the largest businesses had begun to recover. Fewer than half of CFOs (47%) now rate external uncertainty as high or very high. Geopolitics remains the leading external risk, but the level of concern has eased. Deloitte

The labour market followed the same path. In May, permanent recruitment fell at its fastest rate in ten months as employers pulled back amid uncertainty and cost pressures. Employers that still needed additional staff turned to flexible solutions instead, producing the strongest rise in temporary billings in over three years. By August, permanent placements had risen for the first time since September 2022. Temporary billings grew at their second-fastest pace in more than three years, supported by a preference for short-term staff and more contract work. The REC noted that temporary recruitment is now complementing permanent hiring rather than replacing it. KPMG and REC, UK Report on Jobs June 2026 +2

The market is also running at two speeds. Candidate availability is rising at its fastest rate in three months, largely because of redundancies. At the same time, competition for highly skilled candidates and those with niche expertise pushed starting salaries up at the quickest rate since January. In our view, this is the defining feature of 2026 for finance leaders. Plenty of people are available in general, but the specific experience that a transformation, transaction or reporting change requires remains scarce. KPMG

Finance roles sit firmly on the scarce side. Robert Half reports that 45% of businesses plan to grow their finance teams and that 67% of finance hiring managers will pay higher salaries where qualified talent is scarce. It also describes the shortage of qualified accountants as worsening. Across employers more broadly, Hays found that 93% had experienced skills shortages over the past year, and 68% expect a shortage of suitable applicants in the year ahead. Robert HalfFinancialaccountant

2. The interim market in 2026

The Institute of Interim Management's annual survey gives the most complete picture of the UK interim market. Its 2026 findings describe a market recovering from a difficult period. Average days billed rose to 148, and 64% of interims were on assignment at the end of March. Average assignment length increased to ten months, and the average gap between assignments shortened slightly to 3.2 months. Stanton House

Rates have held up. The average day rate rose by 1% to £907, and average private sector rates exceeded £1,000 for the first time. Rates for assignments inside IR35 increased by almost 5%. In the public sector, typical rates are closer to £700, depending on role and seniority. Stanton HouseTile Hill

Finance is central to the interim market. Accountancy and finance professionals make up 17% of survey respondents, one of the largest interim disciplines. Almost a quarter of respondents' most recent assignments were fractional, and 36% had completed at least one assignment inside IR35 during the year. Stanton House

For interims themselves, the market remains competitive. Securing a new assignment was the most commonly cited challenge, reported by half of respondents, and 45% expect conditions to become tougher over the coming year. Providers report that clients increasingly favour candidates who can show immediate relevance to the specific challenge, rather than broad experience alone. Stanton House

In our view, this has two implications for hiring organisations. First, experienced interim finance professionals are available, and the strongest can be secured quickly. Second, longer assignments suggest interims are increasingly engaged to lead defined programmes rather than simply to hold a seat, which makes matching proven experience to the task more important.

3. The Midlands in focus

The Midlands is one of the UK's most important finance labour markets. Birmingham is the second-largest UK city for financial and related professional services employment after London, with 59,120 people working in the industry. Across the West Midlands, around 145,000 people work in the sector, which accounts for 7.7% of the region's economic output. thecityuk

Labour market

Through the winter, the Midlands outperformed the rest of England on temporary recruitment. In December, it was the only English region in the survey to record an increase in temporary billings, and the growth was sharp. KPMG and the REC described the upturn in Midlands temporary recruitment as a clear and sustained trend through the winter. KPMGKPMG

That trend reversed over the summer. In July, temporary billings in the Midlands fell for the first time in eleven months, which recruiters linked to fewer bookings and cost-cutting. Permanent placements, meanwhile, rose marginally for the first time since January. In August, permanent placements rose again in the Midlands and London, but the Midlands was the only area to record a fall in temporary billings, though a modest one. GreaterbirminghamchambersKPMG

More candidates are coming onto the market. The supply of permanent candidates in the Midlands grew at its fastest rate in four months, driven largely by redundancies, and starting salary growth in the region remained weaker than the UK trend. KPMG's people consulting partner in the Midlands has suggested that employers who understand their future skills needs are well placed to secure experienced and specialist talent while it is more readily available. GreaterbirminghamchambersGreaterbirminghamchambers

Business activity and confidence

The NatWest West Midlands Business Activity Index rose from 48.0 in June to 50.6 in July, its first increase in four months, supported by better demand, new client wins and project approvals. New orders rose for the first time in five months, and cost and price inflation eased to four-month lows. In June, West Midlands businesses reported the highest optimism about future activity of any UK region. West Midlands business activity returns to growth in a “more encouraging picture” | Insider Media +2

The region's industrial base also leaves it exposed. In the ICAEW's second-quarter survey, West Midlands businesses were the most concerned about geopolitical risk of any region, with 71% citing it, reflecting heavy exposure to manufacturing and exports. Rising energy costs weighed particularly on manufacturing-heavy regions. In the East Midlands, where confidence fell to -22.3, two thirds of companies named energy costs as their biggest challenge. Business confidence in UK regions: challenges and opportunities | ICAEW +2

The region's dependence on large manufacturers also matters for finance teams. The ICAEW noted that the resumption of production at Jaguar Land Rover after its cyber-attack relieved pressure on suppliers' cash flow. NatWest attributed a late-2025 surge in West Midlands activity partly to recovery from the JLR disruption. In our view, the episode showed how quickly cash forecasting and working capital become board-level issues in an economy built on supply chains. ICAEWNatWest Group

Private equity

KPMG's Private Equity Pulse recorded 87 private equity deals in the Midlands in the first half of 2026, 10% fewer than a year earlier, while exits fell from 19 to six. Bolt-on acquisitions accounted for 58 deals, or 67% of activity. The Midlands attracted 10% of all new private equity backing in the UK. Greaterbirminghamchambers

KPMG expects investors to seek assets less exposed to AI, with more focus on industrials and blue-collar services that offer secure recurring revenues. It also notes that expected changes to capital gains tax could prompt a rise in activity later in the year. In our view, the Midlands' concentration of industrial and business services companies positions it well if that shift takes hold. Greaterbirminghamchambers

4. Where demand is growing

Acquisitions and integration

With bolt-ons making up two thirds of Midlands private equity activity, integration is a recurring need. Acquired businesses must be brought onto common reporting, systems and controls. This work is usually time-bound and calls for experienced delivery rather than permanent headcount. The same appetite for change is visible at the top of larger organisations: PwC's UK CEO Survey found that 59% of UK CEOs are personally sponsoring transformation projects. PwC

Defence and aerospace

More than 1,000 companies across the West and East Midlands operate in defence or related sectors. Together they employ around 50,000 people, equivalent to 10% of the UK's defence workforce. UK defence spending is set to rise from £60.3 billion in 2024-25 to £73.5 billion in 2028-29, and the government has committed to increasing its defence spending with SMEs by 50% by 2028. The Midlands defence prospectus estimates that strategic investment could add up to £2.9 billion in direct GVA by 2035. It projects Ministry of Defence spending with Midlands SMEs reaching £250 million a year within five years. In our view, finance functions at growing suppliers will need stronger contract accounting, programme cost control and cash management as their order books expand. Elizabeth Williams +2

Systems change

93% of CFOs expect UK businesses to increase investment in digital technology over the next 12 months. For many large organisations, the timetable is set externally. SAP's mainstream maintenance for ERP 6.0 enhancement packages 6 to 8 runs until the end of 2027, with optional extended maintenance available until 2030 at additional cost. Interim providers report a significant increase in organisations reviewing their ERP systems, whether selecting new platforms, optimising existing ones or preparing for wider finance transformation. Deloitte CFO Survey Q2 2026: Growing AI optimism | Deloitte UK +2

AI adoption

73% of CFOs say they have become more optimistic over the past year that AI will improve their business's performance, and half expect productivity gains within 12 months. The returns so far have been uneven: PwC's 2025 CEO Survey found that most CEOs had seen little or no gain in profitability (79%) or revenue (78%) from generative AI. AI is already changing how finance teams are built. CFOs cite AI as the second-largest factor reducing graduate hiring over the next year, at a net 47%. In our view, the gap between ambition and results creates demand for experienced finance professionals who can redesign processes and controls around new tools. Deloitte CFO Survey Q2 2026: Growing AI optimism | Deloitte UK +2

Reporting and control

Two regulatory changes are adding to finance workloads this year.

The first is FRS 102. Amendments effective for periods beginning on or after 1 January 2026 remove the distinction between operating and finance leases for lessees, bringing most leases onto the balance sheet. This is a significant change for companies reporting under FRS 102. A new revenue recognition model aligned with IFRS 15 also applies, and lease costs are now presented as depreciation and interest, which affects EBITDA and other key metrics. The changes could affect KPIs and bank covenants. For a company with a 31 March year end, the first affected accounts will be for the year ending 31 March 2027. Amendments to FRS 102 on lease accounting - Viewpoint - PwC +3

The second is Provision 29 of the UK Corporate Governance Code, which affects companies reporting against the Code. From 1 January 2026, boards must review all material controls, including financial, operational, reporting and compliance controls, and declare their effectiveness as at the balance sheet date. The first reports are due in 2027. frc

5. The finance leader's agenda

Leadership continuity

Russell Reynolds Associates reports that CFO appointments across the global indices it tracks reached a seven-year high in 2025, with 316 incoming CFOs, a 10% increase on the previous year. Leadership concerns extend beyond finance: a third of UK CEOs question whether they have the right leadership team around them. In our view, changes of finance leadership are now a regular part of corporate life. The organisations that handle them well plan for continuity before a departure is announced. russellreynoldsPwC

Cost, cash and labour

CFOs continue to prioritise cost reduction and cash control. In the ICAEW's first-quarter survey, 56% of UK businesses cited labour costs as a growing challenge. Late payments have also reached a five-year high nationally. Deloitte CFO Survey Q2 2026: Growing AI optimism | Deloitte UK +2

Employment law

The Employment Rights Act 2025 cuts the qualifying period for unfair dismissal from two years to six months and removes the cap on the compensatory award. The change is expected to take effect on 1 January 2027 and will materially increase employers' financial exposure. In our view, this raises the cost of an unsuccessful permanent appointment. More organisations may use an interim to stabilise a role while the permanent requirement is properly defined. slaughterandmaydlapiper

6. Outlook

KPMG has described the Autumn Budget as an opportunity for the government to turn early signs of recovery into sustained momentum, arguing that a clear plan for growth would give businesses more certainty. KPMG

In our view, senior interim demand for the rest of 2026 will split three ways:

• Change: ERP programmes, post-acquisition integration and reporting change will continue to account for the largest share.

• Cover: demand should remain steady while finance leadership turnover stays high.

• Capacity: demand is likely to peak around year-end, when first-time FRS 102 adoption and Provision 29 evidence-gathering coincide with the audit cycle.

In the Midlands, the two indicators to watch are the direction of temporary billings through the autumn and the pace of any private equity recovery. KPMG's head of M&A for the Midlands points to an active base of buyers and plenty of assets across industrials, manufacturing and professional services, which he believes positions the region well for an increase in deals as confidence improves. Greaterbirminghamchambers

About this report

This report draws on research published between December 2025 and September 2026. Figures are as reported by the original sources, which should be consulted for full methodology. The main datasets are:

• Deloitte's second-quarter CFO Survey, which drew responses from 58 CFOs, including those of 10 FTSE 100 and 21 FTSE 250 companies. Deloitte

• The KPMG and REC UK Report on Jobs, based on a panel of around 400 UK recruitment and employment consultancies. KPMG

• The ICAEW Business Confidence Monitor, based on 1,000 telephone interviews with chartered accountants. ICAEW

Passages labelled "in our view" are Tierpoint Partners' interpretation of the market.

References

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