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Government saves £500m through ICT contract moratorium

Kathleen Hall

The government has saved £500m through its moratorium on consulting, ICT, recruitment, marketing and property spending contracts, the Cabinet Office has said.

So far the government has saved £1bn in efficiency savings and hopes to save a total of £3bn over its first full year, said the Cabinet Office.

From July this year, all central government departments were blocked from signing any new ICT contracts, extensions or modifications above a value of £1m without specific agreement from the Treasury.

Details of ICT projects over £1m across government have also been published by the Cabinet Office. The data published captures government ICT projects and contracts at various stages of their lifecycles as of 31 July 2010.

Francis Maude, minister for the Cabinet Office, said, "There is no excuse for government not to produce the same standards of management information achieved by the best in the private sector. Robust data is the foundation of government acting in a more business-like manner and operating as efficiently as possible."

Further savings made by the Efficiency and Reform Group were highlighted in the Autumn and include £402m from stopping major projects, such as abolishing ID cards.


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