Precis - Cabinet Office announces that it has saved £104 million on IT projects in the last year.

What?  The Cabinet Office has been stricter in its approach to IT spending and produced £104 million savings for the taxpayer in the past year. According to Francis Maude, the minister for the Cabinet Office, a tougher stance towards spending on consultants, stricter signing-off procedures and the introduction of the G-cloud store have contributed to the savings.

So what?  The Government has been on a drive to cut spending on IT following Sir Phillip Green's Review finding inefficient controls and processes in place to monitor Cabinet Office expenditure. The Cabinet Office has taken on board the review's recommendation to adopt a more business-like approach to spending. The cost-saving exercise has included implementing measures such as putting in place centralised procurement processes to save costs in procuring goods and services and requiring senior civil servant sign-off on high value contracts.

The figures are a positive result for the Cabinet Office Efficiency and Reform Group, which applied the spending controls and it is likely that spending controls will be a "permanent feature" for spend in the public sector.

Additionally, the focus on use of cloud will be of interest to cloud providers and suggests that the adoption of the cloud model by other procurement teams will continue apace.