With the UK economy treading water and interest rate cuts still uncertain, many businesses are facing tough choices. But rather than pulling back across the board, finance leaders are adjusting their strategy, ditching what doesn’t work and doubling down on what does.
That’s the picture painted by Soldo’s latest Spend Index, which analyses real spend data from more than 25,000 companies across the UK and Europe. The findings suggests finance leaders are steering toward targeted investment, especially in areas that promise greater productivity and long-term impact.
“The smartest finance leaders aren’t just cutting, they’re optimising,” says Sacha Herrmann, CFO at Soldo, a payment and spend automation platform. “Rather than sweeping cuts, they’re doubling down on spending that drives value, especially tools and strategies that boost productivity. It’s about tighter control over decentralised spend and clearer visibility, enabling growth without losing financial discipline. In tough times, that balance is what builds resilience.”
AI spending surges
AI spending is still on the rise but businesses are getting smarter about it. Among larger UK firms, investment jumped 130 per cent in early 2025, with finance teams backing tools that boost productivity rather than chasing the next shiny thing.
Tools like ChatGPT and productivity-focused AI platforms are seeing the biggest gains. Spend on AI plugins rose by 148 per cent, while image and video generation tools were up 70 per cent. Even presentation builders and transcription tools saw double-digit increases (67 per cent and 21 per cent respectively).
Certainly, the excitement around AI hasn’t faded but businesses are now more focused on how to scale it, make it visible and keep it under control as different teams adopt tools at their own pace.
“We’re past the hype,” Herrmann says. “CFOs are starting to see the value of investing in AI tools that deliver real impact, not just those that sit in the limelight.
Software and services take centre stage
Software spending is up 43 per cent in the UK, as businesses lean into tools that help teams work smarter and keep performance on track. Professional services spend has climbed even faster – up 59 per cent – with more companies bringing in outside experts as rules tighten and priorities keep moving.
“Rising spend on software and services shows a shift to scalable, flexible models,” says Herrmann. In uncertain times, CFOs are prioritising platforms that drive efficiency and insight, while cutting what no longer delivers value.”
At the same time, finance teams are being more selective. While software is getting more backing, recurring spend overall has dropped by 30 per cent among large firms in a sign that underused tools are getting the chop in favour of what actually moves the needle.
Travel is back… with a bit of caution
Travel and expense (T&E) spending increased 12 per cent in the UK during H1 2025, including a 30 per cent spike in car rental among large businesses. Rather than a return to pre-pandemic habits, however, this marks a new phase of controlled mobility.
“It’s a bit of both,” explains Herrmann. “Travel is back, but with purpose. Spending is up, not because businesses are reverting to old habits, but because field teams, account managers and project leads need to be mobile. What’s changing is how this spend is managed: more visibility and a sharper focus on facilitating only essential travel that supports growth.”
There’s also been a 49 per cent rise in motor vehicle costs and a 22 per cent increase in travel overall, pointing to the growing role of field teams and project leads who need to be on-site. In care, where staff are constantly on the move between sites, T&E spend rose 26 per cent. Meanwhile, entertainment budgets have dipped slightly – by five per cent – suggesting businesses are still keeping the non-essentials in check.
Everyday spending is still climbing
Outside of travel, businesses are still spending steadily on the basics. Operational costs, which cover everyday running expenses, rose 26 per cent across Europe and 23 per cent in the UK. Within that, shopping-related spend jumped by a third, and spending on services was up 24 per cent.
In other words: the taps aren’t off, but finance teams are watching every drop. Budgets are being assigned by team, project or location, and spending is tracked in real time. It’s about keeping things moving without letting costs drift.
In manufacturing, for example, overall spend rose 23 per cent in H1, including a 20 per cent rise in construction-related costs.
Spending smarter, not just less
If there’s one message running through Soldo’s 2025 mid-year Spend Index, it’s that spending is still happening but it’s far more intentional. Businesses are backing tools and services that show a clear return, while quietly dropping what doesn’t.
“Businesses are recognising the importance of agility,” says Herrmann. “Finance’s role is to bring visibility and steer investment toward tools that scale effectively and align with long-term goals.”
