Based on implementing electronic government statements submitted by councils last year, Kable's research forecast that local government will spend £3.3bn delivering services electronically between 2001 and 2006.
However, a similar study conducted by Kable on 2001's round of IEG statements suggested that the cost was likely to be £2.1bn over the four years up to 2005.
Karen Swinden, head of forecasting at Kable said, "Even allowing for an extra year, that is still a significant funding shortfall.
"This shows that e-government is more complicated and involved than councils could have imagined - it will consume a lot more of their time, energy and resources."
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