The prospects for capital expenditure spending on IT in the UK financial services sector over the next 12 months remain at a near-record low, according to research by the CBI and PricewaterhouseCoopers (PWC).

But finance firms are still looking to IT systems and applications to boost their growth strategies, says the latest quarterly survey from the two organisations.

When asked by researchers if they expect to authorise more or less capital purchases in IT over the next 12 months, compared to the past year, respondents gave a balance of -22 per cent – meaning that the proportion expecting to spend less exceeded those planning to spend more by 22 percentage points.

The only time in recent years that the figure has been more negative was three months ago, when the survey reported a -24 per cent balance. Twelve months ago, the balance was just -1 per cent.

But finance firms recognise that IT will play an important role in enabling growth, with a balance of 13 per cent saying that investment in systems and applications will be important in the next 12 months.

"Conditions remain exceptionally tough in the financial services sector, and have not been helped by equity markets having fallen further since our last survey in December,” said CBI chief economic adviser Ian McCafferty.

"Sharp drops in revenues and profitability are causing continued suffering, while business volumes remain very weak. Firms are making heavy cuts to staff numbers and investment plans to make savings and reflect weak demand.”