An IT overhaul of departments will be at the heart of the chancellor of the exchequer's £330m modernisation scheme...
to achieve key savings by 2011.
The scheme, announced in the 2007 Pre-Budget Report and Comprehensive Spending Review, will involve investing in a modern, high-capacity IT infrastructure in HM Revenue and Customs to support higher take-up of online services, more efficient processing and communication, and better risk-based compliance checks, generating annual net cash-releasing savings of £180m by 2010-11.
It will also involve rationalising HM Treasury's IT estate and full implementation of Group Shared Services, generating annual net cash-releasing savings of £10m by 2010-11.
Procurement savings including travel services and IT and telecoms are expected to realise savings of £14.7m annual net cash-releasing savings by 2010-11.