Managing employee T&E spend has received a huge amount of coverage across the media since the MPs expenses scandal. On a positive note, the enhanced media buzz around the topic has helped to emphasise how important it is, in times of economic uncertainty, for businesses to ensure they are doing their very best to keep a handle on expenses. In October 2008, the BBC decided to ban champagne from employee expense submissions. An article published in the Guardian this week, highlights how the BBC has made dramatic costs savings since this change in expense policy. According to the article, the BBC drinks bill fell from £107,511 in 2008 to £55,984 in 2009 – close to a 50 percent fall.
The BBC example shows how one simple change can have a significant impact on the overall expense budget of an organisation. During the recession we have seen a number of cuts made with fewer business class flights and less expensive restaurant bills, but businesses need to evaluate all areas where cost savings can be made. Enforcing a policy, such as mandatory use of public transport rather than a taxi for journeys fewer than five miles, could mean drastic cost savings for SMEs and large enterprises alike.
