IT cuts to be deeper under Tory-Lib coalition


IT cuts to be deeper under Tory-Lib coalition

Microscope contributor

The channel is waiting with bated breath for the Conservative and Liberal Democrat coalition to outline spending cuts in IT, which are expected to be far greater than under any deal that involved Labour.

As every corner of our sceptred isle will now be aware, the Prime Minister Gordon Brown last night resigned when it became apparent that a Lab-Lib alliance would not be sealed. 

Georgina O'Toole, Tech Market Views research director, said Labour had planned to maintain or increase investment in the major IT programmes.

"When it comes to investment in major IT programmes, we can expect far greater cuts under a Conservative-Liberal Democrat coalition than we would have had with any coalition involving Labour," said O'Toole.

"This is likely to be bad news for some of the big IT services suppliers," she added. "However, let's not forget that the Government is likely to find that it's a costly business trying to reduce the value of a contract midway through its term."

The Tories want to "halt and renegotiate" contracts under the NHS Programme for IT, a plan backed by Nick Clegg's brigade. They also plan to review the Interception Modernisation Programme, oppose the National Identity Scheme and scrap the ContactPoint children's database.

With regard to Building Schools for the Future, the Tories favour the Academy scheme though existing deals should be safe, which is why many Local Education Authorities pushed hard to get the scheme through before the General Election.

Yolanta Gill, chief executive at European Electronique (EE), hoped that the Tories keep their word to hand 25% of public sector contracts to SME, extend the Academy programme and tweak BSF which "appears to be designed for much larger players," she said.

"Taking into account that a large amount of the funding for academies comes from non-Governmental organisations such as charities, businesses and faith groups, this would help with plans to cut the deficit," said Gill.

Related Topics: Desktop PCs, VIEW ALL TOPICS

Join the conversation Comment



    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.