The VAT increase has proved a catalyst for more than half (56 per cent) of firms to scrutinise their costs, research among 200 companies from American Express finds.

Some 62 per cent of respondents believe they are missing out on the savings, discounts and rebates offered to larger organisations.

Katrina Cliffe, vice president and general manager of Commercial Cards at American Express UK says, ‘Against the backdrop of the VAT increase and speculation about interest rate rises later this year, mid-sized companies are focusing more than ever on [controlling] business expenditure.

‘Travel and entertainment costs typically account for an organisation’s third largest controllable cost after salaries and IT and small and mid-sized companies in the UK are keenly aware of the need to put an even greater focus on how to achieve the best value from suppliers and from their overall company spend.’

See also: Choosing the right supplier