The majority of UK companies will increase their IT spending this year.

According to research by the Economist Intelligence Unit on behalf of Telewest Business, 58 per cent of the 150 senior UK executives surveyed are planning to increase IT spending in 2004, and a further 29 per cent will maintain last year's budget level.

Nearly a quarter said budgets would rise by up to 10 per cent this year, and 21 per cent will see increases of between 10 and 25 per cent.

IT is being increasingly viewed as a strategic tool, with 96 per cent of executives citing technology as either important or critical in lowering costs and maximising efficiency.

The survey also suggests that IT is moving into the boardroom, with 66 per cent of respondents having IT directors on the senior management board.