In 2023, UK businesses navigated a challenging economic landscape by prioritising essential spending areas.
- A significant rise in spending was seen in travel and bulk buying, aiming to optimise resources.
- Investment in staff wellbeing remained a critical focus, enhancing employee resilience and productivity.
- There was a notable increase in the usage of green initiatives, particularly in electric vehicle infrastructure.
- Businesses leveraged technology to streamline spend management and improve financial oversight.
New research analysing 24,000 UK businesses highlighted pivotal spending patterns in 2023, with a clear focus on travel, bulk purchasing, and employee wellbeing. With no sign of economic pressures easing, businesses found it crucial to manage every aspect of their financial outlay meticulously.
One of the prominent trends was a resurgence in business travel. Following years of restrictions due to COVID-19, companies reported a 17% increase in train travel expenses and a 7% rise in flight costs. Notably, financial services firms were the most frequent users of air travel, seeking to reconnect and expand their networks.
In an effort to reduce costs, businesses increasingly resorted to bulk buying. This move aimed to counteract inflationary pressures, allowing firms to maximise their purchasing power and secure better deals through wholesale shopping.
Investments in staff wellbeing also saw a pronounced increase. According to the CIPD, such investments are linked to improved employee resilience, engagement, and performance. Companies are offering diverse wellbeing programmes, including a notable example of a £2,000 annual perk for employees to enhance their personal wellbeing.
The year also witnessed a surge in green initiatives, particularly with electric vehicles. There was an 83% increase in the use of EV charging stations, accompanied by a 15% rise in individual spending on these facilities. The BVRLA reported a 68% growth in green EV salary sacrifice schemes during the third quarter of the year.
To effectively manage these varied expenses, businesses turned to technology. By consolidating their spending data into a single platform, they could monitor expenses in real-time, improve compliance, and focus more on strategic business decisions rather than administrative processes.
Overall, 2023 showcased a strategic shift towards sustainable spending, staff wellbeing, and efficient resource management.
