Public sector spending on IT is set to reach 1% of GNP in the UK next year, according to analyst group Kable.
The firm forecasts an outlay of £10bn on IT in 2002, a 25% increase on the £7.6bn spent by government bodies in 1999.
The prediction comes in spite of a series of high-profile failures of government IT projects, including last week's cancellation of a key immigration system designed to help clear the backlog of 66,000 asylum seekers. Systems intended to improve the management of probation service records, passport applications and tax returns have also encountered serious difficulties.
However, a number of new local e-government initiatives are expected to drive up public sector IT spending in 2002, adding an extra £350m to local government bills over the next three years.