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Darling talks digital economics as ICT spending cuts announced

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24th Mar 2010
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Even as Chancellor Alistair Darling talked up the UK's digital economy during his Budget speech, he announced a £500m cut in government IT programmes over the next two years.
Chapter 6 of the Budget report confirmed a series of nominal cuts in IT programmes in several government departments. The reductions will add up to £500m by 2012-13 and will include £130m in savings from the replacement of legacy systems within the Ministry of Defence.
A new approach to the controversial National Programme for IT will bring another £100m of savings – from an estimated budget of £12.7bn. A 20% reduction in the IT expenditure at the Home Office (equating to £80m) has also been announced.
The Budget also confirmed a reduction in departmental consultancy spending by 50%, which along with a 25% in marketing budgets will save £650m by 2012-13.
Digital future?
In his Budget speech, Chancellor Alistair Darling also talked about investing in new infrastructure. “Together with the Business Secretary, I have been working to find effective ways to enable small businesses to grow, invest in key national infrastructure and skills and promote research, innovation and enterprise,” he said.  
“Investment in both traditional and new infrastructure is also vital if our economy is to grow and our businesses are to succeed,” he added. Last year’s Pre-Budget Report saw the formation of Infrastructure UK, which published a new strategy alongside the Budget that sets out a roadmap for investment.
Darling also alluded to the Digital Economy bill.  “The UK has the potential to be the world leader in the digital economy,” he declared. “Realising this ambition would create thousands of new businesses and hundreds of thousands of new jobs. It will also open the way for public services to be delivered more effectively and at lower cost.

“Access to high-speed broadband is essential to deliver these goals. We have taken the decision to ensure the benefits are spread to rural as well as urban areas and are not limited to the better off. The 50 pence monthly landline duty will unlock private investment and enable 90% of the country to access the next generation of super-fast broadband by 2017.” 

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