Minister warns of big cuts to government IT budgets

But adds that ICT is crucial to driving up efficiency

Pearson asks ICT industry for help with efficiency targets

A senior Treasury minister has warned the ICT industry that cuts to rebalance the government's books in the wake of the economic crisis mean it will have to help government departments do more for less.

Economic secretary Ian Pearson said the crisis had had "a profound impact on the public finances" resulting in "fiscal consolidation" to help halve public sector debt over four years.

Steps announced so far have included cuts of £3.2bn by 2012-13 on IT spending as part of an operational efficiency programme, £600m to be secured by greater use of online systems and £850m by delaying some large IT programmes.

He told a conference organised by the ICT, electronics manufacturing and design and consumer electronics industries body Intellect, and the Office of Government Commerce, that the direction of change needed was clear: there would be cuts to some budgets and some programmes would need to be stopped altogether, but savings should be found "in a way that is not detrimental to services" with "the expectation that service is delivered and also improved."

He added: "We must be relentless in finding new ways to save money in order to pay for services."

Alongside cuts will be a £30m programme to support the National Plan for Digital Participation and the use of communications technology to promote behavioral change, such as texting reminders of appointments.

He said: "To improve efficiency, the Operational Efficiency Programme aims to streamline government processes and deliver more for less...running leaner back-office and IT functions are key area for efficiency savings."

Public sector organisations would use collective purchasing power to leverage better value and Pearson appealed to those in industry alongside government to come up with solutions to help maintain and improve the services provided, alongside cutting costs and using the opportunities created by the spread of next generation broadband, intended to reach 90 per cent of the population by 2017.

Pearson cited the Government Gateway, DVLA vehicle licensing online, better management of hospital admissions and OGC IT hardware e-Auctions as examples of programmes that have increased efficiency.