Budget implications for not meeting our travel and expenses savings target

We’ve had a mixed performance on travel and expenses savings this Green October, so I wanted to flag a potential risk as we come to the end of this year, and budgets are reset

In Period 9 across the Co-op we spent almost £1m less than in Period 9 2017, which is very encouraging and to be celebrated. The first week of Green October was great – we spent £38k less than the same week last year. This drifted in week 2 and unfortunately went backwards again in week 3. In Week 3 spend was £10k more than in the same week of 2017.

We need to prepare for a 20% budget reduction

The challenge to save £150k which was set for Green October is the equivalent of a 20% reduction. All BU’s and support functions have accepted reductions in budgets next year, which broadly mean a saving of 20% on this year’s spend. The reality is that if spend in this area keeps creeping up, many functions are likely to overspend their travel & expenses budget.

With one week of Green October left it would be great if you could give it one final push to make the savings we need for Fuel for Growth. Please also remind your teams that we need to change our approach to travel & expenses permanently to stay within budgets next year.

David Roberts
MD Co-op Property / CCO for Travel and Expenses