A new survey by KPMG and the Chartered Institute of Personnel and Development (CIPD) has revealed that two-thirds of businesses have experienced or will soon be experiencing an organisational budget cut.
Fringe benefits and travel, as well as the ability to work overtime will all be held back in an attempt to make ends meet.
The private sector is having to rethink its accounts in a more dramatic way than the public sector, as 74 per cent of private companies have reduced their travel expenses compared to 50 per cent in the public and voluntary sectors.
Head of HR at KPMG Tim Payne said: "It's no surprise that organisations are reining back on non-essential spending and scrutinising their policies carefully. What is important is that policy changes are made sensitively and in a way which preserves goodwill."
Small businesses will have to radically reconsider their accounts after the Chartered Institute of Management Accountants warned that a poor business strategy could help to "wipe them out".
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