Magazine article Public Finance

IT Cuts Threaten Planned Savings

Magazine article Public Finance

IT Cuts Threaten Planned Savings

Article excerpt

Plummeting levels of investment in IT threaten the government's efficiency drive, public sector technology leaders have warned.

Ministers have emphasised that IT can be used to transform public service provision and make savings.

But during 2009, finance for IT in local government, fire and police authorities dropped by an estimated 11% on the previous year, according to a report published by the Society of Information Technology Management on January 21.

The report, IT trends 2010: stretched to breaking point, drew on a survey of 390 public authorities. It warned: 'The forecast for overall IT spending is £2.8bn, £400m less than in 2008; the biggest annual fall for many years.'

Planned capital spending on IT fell to £455m, a drop of £116m from 2008 levels. IT staffing levels also fell by 10%.

'The overall capacity to deliver improvement has decreased since our last survey,' the report said. …

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