£6bn of savings - some of the impact on IT

The Treasury outlines in a statement today (24 May 2010) how the government will save £6bn in 2010/11. There’s no detail, only headline figures.

This is what the statement says:

“Government announces £6.2bn of savings in 2010-11 … Action to cut Whitehall waste and protect schools spending.

“Today the Chancellor of the Exchequer George Osborne and Chief
Secretary to the Treasury, David Laws announced:

 –  £95m through savings in IT spending

–  £1.7bn from delaying and stopping contracts and projects, includingimmediate negotiations to achieve cost reductions from the majorsuppliers to government

–   £1.15bn in discretionary areas likeconsultancy and travel costs
–   £1.165bn of savings from localgovernment by reducing grants to local authorites to reflect theircontribution to the £6.2bn

–   £80m from closing the BritishEducational Communications and Technology Agency (BECTA) and othersavings in Department for Education quangos.

The Chief Secretaryto the Treasury and Secretaries of State across Whitehall arere-examing all spending approvals made since the 1st January 2010, to”ensure that they are consistent with the Government’s priorities ofgood value for money”.

The detail?

The Treasury says that the savings will be driven by a new Efficiency and Reform Group, whose board will be joint-chaired by Francis Maude, who is the minister responsible for government IT, and the Chief Secretary to the Treasury, David Laws, and the Minister for the Cabinet Office and Paymaster General.

The Group will draw on the expertise of officials from across Whitehall. It will help departments to deliver savings, and will “oversee an immediate freeze on non-critical spending on consultancy, advertising, and recruitment of non-frontline civil service staff”.

The Efficiency and Reform Group will include civil servants from across Whitehall, and will be located within existing premises, with no extra cost to departmental budgets.

Lib-dem leader Nick Clegg says the savings will be painful.

The effect of the savings by department:

Departmental contributions in 2010-11:

Department for Education – £670m

Department for Transport – £683m

Communities and Local Government – £780m

CLG Local Government – £405m

Business Innovation and Skills – £836m

Home Office – £367m

Ministry of Justice – £325m

Law Officers’ Departments – £18m

Foreign and Commonwealth Office – £55m

Department for Energy and Climate Change – £85m

Department for Environment Food and Rural Affairs – £162m

Department for Culture Media and Sport – £88m

Department for Work and Pensions – £535m

Chancellor’s Departments – £451m

Cabinet Office – £79m

Devolved Administrations – £704m

Treasurystatement on £6bn cuts in 2010/11 – Treasury website

Will Tories create raft of new IT projects? – IT Projects Blog