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Government cuts £95m from IT budget

It also wants to save £163m with a recruitment freeze across the civil service, and £836m via cuts in the business department.

Chancellor George Osborne said in his speech this morning that the savings will include "nearly £2bn from IT programmes, suppliers and property", and chief secretary to the Treasury David Laws provided further detail.

As well as the IT budget cuts, the government also wants to squeeze £1.7bn from delaying and stopping contracts and projects, including immediate negotiations to achieve cost reductions from the 70 major suppliers to government.

Every government department will be required to make savings. The Department for Communities and Local Government will need to save £780m, the Department for Education £670m and the Department for Transport £683m.

David Laws said, "These are only the first steps which we will need to take in order to put our public finances back in shape.

"There will be many more tough decisions, but we believe that the British people understand that these choices can no longer be ducked.

"The years of public sector plenty are over. But the more decisively we act, the more quickly and strongly we can come through these tough times."

This story was first published by Computer Weekly