The chancellor Alistair Darling has confirmed that it plans to roll out efficiencies in its use of IT as part of its plans to claw back public spending.
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Yesterday the ex-head of Logica Martin Read produced a report that claimed the government could save £7bn a year and this morning those calls for a more efficient use of technology were backed by trade body Intellect.
Darling said that the savings in the IT budget would come from "improved procurement and better collaboration at a local level" and it would also be looking at selling off government owned property to claw back £16bn over the next few years.
He said if it managed to make public sector IT more efficient it would be able to avoid front line job cuts.
He added that it would also make funding available to extend broadband services so it could fulfill the vision set out in the recent Digital Britain report.