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The UK Government’s savings initiatives have saved 2.1% on ICT spend

January 23, 2013

A report issued on January 23, 2012 by the National Audit Office finds that long-term recurring savings initiated by the coalition government in 2011-12 were £145m – accounting for 2.1% of overall ICT spend. The NAO finds that this is “starting to have a positive impact on value for money in an area of spend that has previously proved intractable”.

“Government initiatives to reduce spending on ICT are starting to work.” Amyas Morse, head of the National Audit Office

The report finds that Cabinet Office has developed ICT spend data that has the potential to provide government with more accurate ICT data than in the past. The initiatives to reduce ICT spend claimed to have saved £354 million, of which £316 million has been confirmed as fully evidenced by the NAO.

The NAO qualified its agreement on these savings by pointing out that 21% of the £316m are savings from spending that had been stopped by government in the current financial year but may be submitted for approval in future years. And of this only £145m (2.1%) can be surely accounted for as long-term, rather than short-term cost-cutting measures.

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© Brian Wernham 2013 CC BY-NC-ND


From → Agile Governance

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