Government targets ICT and office supplies for budget cuts

Released 05/07/2010

Health minister outlines reductions in public expenditure

Health minister Simon Burns has revealed the Department of Health has targeted categories of spend worth approximately £19.5m in overheads and capital expenditure for budget cuts. Cuts in public expenditure are to include £6m from ICT spend and £13.5m on travel, office supplies and catering.

In a written response to a question from Gordon Bank, the Labour MP for Ochil and South Perthshire, Burns said the DH has been working with suppliers to maximise value for money from products and services.

Bank's question was: "How many of his [Burns'] department's contracts with its suppliers are under review as a result of the recently announced reductions in public expenditure; and what the monetary value is of all such contracts which are under review?"

Burns answered: "From May 2010, the department has targeted categories of spend worth approximately £19.5m in the first instance. This is for ICT products and services, travel, office supplies and catering. The breakdown of this figure is: ICT products and services - £6m and travel, office supplies and catering - £13.5m.

"Officials have met, or are planning to meet, the current suppliers of each of these services to agree where additional monetary savings on expenditure can be derived," Burns continued. "It is likely that the Department's suppliers will also be engaged in discussions with Cabinet Office and Office of Government Commerce colleagues relating to cross-Government savings opportunities where the supplier provides services to a number of Government Departments."

The DH estimates that five officials are spending a proportion of their time working on the renegotiation of existing contracts. Burns said it was not possible at this stage to provide a savings figure, how much expenditure will be incurred or when such renegotiations will be completed.

Return to news

Discuss this in our forum