Coalition gov't to cut 'wasteful' IT spending

The new government will cut IT spending and projects including ID cards to help it save £6bn in the current financial year.

George Osborne, the new chancellor of the exchequer, said he will announce the details of the cuts on 24 May, with an emergency budget speech on 22 June.

HM Treasury said the £6bn will include "doubling the current delivery plans for savings in IT spending" and "cancelling wasteful projects like ID cards".

The government is also reviewing all spending approvals made since 1 January, along with all pilot schemes.

The treasury was not available to provide further detail on the statement.

"The coalition has agreed that £6bn of savings to non-front line public services should be made this financial year. The departments for health, defence and international development will also make savings, but they will be reinvested in their front lines," said Osborne.

"The coalition has also agreed that, given the state of the public finances, the great majority of the £6bn of savings from other departments will be used to reduce the deficit."

Osborne said the cuts are necessary to restore confidence in the economy and avoid sharp increases in interest rates, worsening recession and growing unemployment.

He also announced the establishment of the Office for Budget Responsibility, which will produce independent financial figures and forecasts. This will include looking at the cost of outstanding public finance initiative deals.