Public sector IT spending currently absorbs more than £17 billion of public spending annually in the UK. Under Labour, British expenditure in this area dwarfed that of any other European Union nation, with many contracts costing billions of £s and running for periods up to 18 years. The UK also has perhaps the most concentrated government IT market in the world. So the Treasury announcement of an effective freeze in central government IT spending has sent shock waves through a major private sector industry. Here Jerry Fishenden decodes what the new Conservative/Liberal Democrat government is seeking to do and why it has determined on such a radical stance
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