UK SMEs: 'Spending on IT is our top priority'

Investing in IT is the top priority for the UK's small businesses over the next financial year.

According to a survey carried out by BT Openworld, almost one-third (27 per cent) of UK SMEs (small and medium sized enterprises) are intending to purchase cutting-edge technology.

A similar figure (26 per cent) are planning to reduce administration costs over the coming year, while a quarter of businesses are looking to improve their budgeting and planning.

Almost all (96 per cent) of the companies questioned do not intend to reduce their entertainment-based outgoings, such as company events and corporate days.

Duncan Ingram, managing director of BT Openworld, said in a statement: "Small businesses have recognised the need for cash-conservation during these difficult economic times. However, they've also latched on to the fact that investment in the latest technology can help deliver competitive advantage. For this reason, well-budgeted and carefully targeted technology spend will still be taking place in the SME sector during the coming business year."

More than 200 companies were questioned for the survey.