Treasury puts freeze on all new IT spend over £1m

The UK government has imposed an immediate freeze on all new IT spending above £1m, and reviews of the biggest IT projects are being set up to see which can be stopped. A new group, the Efficiency and Reform Group, has been set up by the Treasury and Cabinet Office, with the power to enforce spending cuts across Whitehall. The group was formed as part of the drive to cut £6.2bn from government spending. It will also start renegotiating contracts with major suppliers across government. Minister for the Cabinet Office Francis Maude said, “We have got to get an immediate grip on Whitehall waste if we are going to tackle this unprecedented £156bn deficit quickly. By joining forces and concentrating our efforts where the money actually gets spent, we can make sure the maximum amount gets taken out of government overheads.” And about time too! The UK Government has wasted hundreds of millions of pounds of tax payers money on useless IT projects over the last 10 years. And the good news for private sector buyers is the fact that when vendors can’t dip into the governments trough, then they will become even more desperate to win any private sector deals; so that should mean more negotiation leverage for IT buyers. So our recommendation at Silver Bullet Associates is for IT Buyers to ‘make hay while the (Government) sun doesn’t shine’.

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