Small businesses wield the knife

20 January 2009

Nearly a fifth of Britain’s small businesses intend to rein in spending on business travel as the impact of the recession intensifies.

According to a YouGov survey, commissioned by electricity supplier Opus Energy, 19 per cent of businesses employing than fewer than 50 people will opt for their travel spend when looking to make economies.
However, of the 500 firms surveyed only 3 per cent said that they intended to review their gas or electricity tariffs.

Andy Nash, operations director at Opus Energy said: “It is surprising that a review of utility bills does not appear higher up the list. This widely overlooked area can provide vital savings for companies. Carbon Trust research shows that simply monitoring energy efficiency could help companies save over 12 per cent on their bills.”

Other areas of expenditure where businesses are reluctant to make cut-backs include IT spend, with 25 per cent pledging themselves to maintain expenditure, and “daily perks” like biscuits, tea, coffee and entertainment (16 per cent). Reasons cited for the latter included the need to maintain staff morale during difficult times.