IT department savings amounting to £249 million asserted by the Cabinet Office
The UK government made significant strides in cost-cutting during the 2011/2012 tax year, with the Cabinet Office contributing an impressive £5.5 billion in savings. This figure represents a substantial increase from the £3.8 billion savings achieved in the previous year.
The savings were primarily attributed to the Efficiency and Reform Group within the Cabinet Office. This group's measures, which included IT cost-cutting and improved operational efficiency, were instrumental in the government's successful cost-saving efforts.
One of the key areas of success was a reduction in government IT spending. The National Audit Office reported a £800 million reduction in IT spending between 2009/10 and 2010/11. However, it warned that the level of cuts was not sustainable. Despite this warning, the Cabinet Office continued its efforts and achieved further savings, with the Efficiency and Reform Group saving £249 million from government IT spending in the last tax year.
The Cabinet Office's IT cost-cutting measures have been made permanent, and the savings have been substantial. The combined saving of £359 million in IT-related costs for the 12 months ending in April is more than the government's IT strategy target for 2011/12, which was £160 million.
Furthermore, the Cabinet Office saved an additional £500 million in bulk purchasing of goods and services, up from £360 million the previous year.
Another significant area of savings was in consultancy spending. Almost a fifth of the total savings, £1 billion, came from reduced spending on consultants. Government spending on consultancy has fallen by 85% since the present government came to power.
The Cabinet Office also made savings through better scrutiny of ICT projects, with £145 million cut in this area.
Since the end of the 2011/12 year, the Cabinet Office has agreed on pan-government deals with three major tech companies, which are expected to save nearly £150 million over the next three years.
The Cabinet Office, established to improve the government's operational center and make Whitehall operate in a more business-like fashion, has been successful in its mission. The Cabinet Office minister, Francis Maude, stated that the Efficiency and Reform Group is working well and they are determined to find more efficient ways to provide public services.
Despite the significant savings achieved, the total savings from government spending in the 2011/2012 tax year by the Cabinet Office was not mentioned in the provided paragraphs. However, the savings made through the Efficiency and Reform Group's measures have undoubtedly played a crucial role in the government's overall cost-cutting efforts.
