Immediate freeze on all IT projects over £1m

Also a freeze on all new consultancy work, and contracts over £20,000 will need ministerial approval

Immediate freeze announced by Lib Dem Chief Secretary David Laws

The Treasury is imposing an immediate freeze on all new ICT projects above £1m in its drive to reduce spending this year by £6.2bn.

There will also be a freeze on all new consultancy work "unless it is an operational necessity" and contracts over £20,000 will require individual ministerial approval.

The moratorium was announced by Lib Dem Chief Secretary David Laws, who said the biggest projects, including ICT projects, are being reviewed "to see where costs can be reduced or where wasteful projects can be stopped altogether".

So far IT savings of £95m have been identified and are being implemented. No details have so far been given.

Laws said departments will start renegotiating contracts with major suppliers across government to reduce costs. He did not identify which, if any, contracts signed since 1 January that are already under review are slated to be revoked.

The scrapping of ID cards is one of the key measures expected in tomorrow's Queen's Speech setting out the legislative programme for the next 18 months, together with the national identity register and ContactPoint.

The cuts will be supervised by an Efficiency and Reform Group under Laws and Cabinet Minister Francis Maud. It will "have the power to make sure departments work together to tackle waste and improve accountability across a range of areas, including ICT spend".