Small businesses escape IT spending cuts

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Small to medium-sized businesses (SMBs) have no plans to stop spending on IT during the almost-certain recession this year, a new survey has found.

In fact, 25 per cent of UK small businesses said they will avoid making cuts to IT budgets to save costs during the tough economic year ahead - emerging ahead of other business areas.

Out of the 500-plus managers from companies with fewer than 50 employees questioned by YouGov, business travel and advertising spend came ahead of IT at the top of the list for budget cuts with 19 and 18 per cent respectively.

And, the larger the company, the more likely it is that staff will face bonus cuts, mentioned as the first area of cost-cutting focus by a third (33 per cent) of the largest firms surveyed.

Andy Nash, operations director at the survey sponsor and energy firm Opus Energy expressed surprise that IT and the facilities used to support it did not figure higher up the list.

Given that IT lays an increasingly large claim on business utility bills, Nash pointed out: “Only three per cent of small businesses said they would review their gas or electricity tariffs in order to make business savings. This widely overlooked area can provide vital savings for companies and make more of an impact on their bottom line than other areas.”

While the survey suggests SMB employees won’t be losing their work laptops or mobiles anytime soon, it also found day-to-day staff perks emerged as the second least likely area to face cutbacks during difficult times among 16 per cent of managers.

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