George Osborne hopes £800m will be saved between 2015 and 2016 by using digital technology and adopting new commercial models for service delivery, he announced today as part of his spending review.
The review outlined a string of cuts across the government, but NHS and spending on schools were safe from the axe.
The Cabinet Office – the home of the Government Digital Service (GDS) and G-Cloud – will see its budget cut by 10.1 per cent between 2015 and 2016 to £300m. The department has one of the smallest budgets in government – similar in size to that of the Treasury and the department of Culture, Media and Sport (both of which escaped cuts in 2015).
Reduction of IT costs and consolidation of the department's estate will be a key driver behind the Cabinet Office's 10 per cent budget cut, while its Efficiency and Reform Group (ERG) is charged with continuing its efforts to make the government more efficient – moving public services online cited as being a key aspect.
Recently, the GDS claimed to have helped the ERG save £500m, partly by adopting open source technology and using shared services.
Central government hopes to save £1bn in 2015 by centralising the purchase of common goods and services through its Procurement Service and making better use of IT.
The Spending Round report said: "The government will... accelerate progress towards using digital technology as its principal channel for doing business (digital by default) and adopt new commercial models for service delivery, saving £800m.
"Around £1bn [will be saved] from ensuring that the government acts effectively as a single customer when purchasing goods and services."
Investment in cybersecurity will grow in 2015, with £210m to be invested in the National Cyber Security Programme (NCSP).
While more details of the investment will be announced later on in the year, the report said it aimed to raise awareness of the cyberthreat to the public and protect the country's interests online, making it harder for hostile states and criminals to target the UK.
Businesses also admit to holding data without permission of subjects
Zedsphere says end-point security vendor's offerings will be a 'key' feature of its wider portfolio
New acquisition will bring UK cloud service provider's global headcount to over 700
Law firm claims that Oracle lied to investors over what is driving its cloud revenue growth and boosted sales through 'threats and extortive tactics'