Member Article

UK business IT investment falls by 10%

UK business investment in IT dipped by almost 10% in the first quarter of 2012 new figures have revealed.

Data published by the Office for National Statistics (ONS) shows that business spending on IT fell from £3.91bn to £3.52bn between January and March despite overall investment increasing almost 4%.

Philip White, Chief Executive of independent IT finance provider Syscap, said: “Banks are traditionally uncomfortable with lending to businesses so that they can invest in IT equipment.

The dip in spending came in the moths prior to the reduction of the Annual Investment Allowance in April, which saw the amount of tax free equipment firms were allowed to buy drop from £100,000 to £25,000.

Mr White warns that the decline in IT investment could leave UK businesses less competitive internationally.

He added: “Maintaining a modern IT infrastructure is a vital factor in national productivity, the trend in under investment in IT is not seen elsewhere in the world.”

This was posted in Bdaily's Members' News section by Matthew Bowen .