Government departments will be called upon by the Treasury to report their expenditure on services such as IT and human resources in an attempt to make cost savings on public spending during the current financial crisis.
Currently, the Treasury only has estimates of public sector expenditure on back-office operations and after last year's pre-Budget report, chairman of Logica, Martin Read, proposed that the Treasury should acknowledge the full cost of these functions.
Read worked out that IT spending by Whitehall and other public bodies amounted to between £12.5bn- £18.5bn a year, according to the Financial Times. Meanwhile, other back-office functions were calculated to have cost taxpayers a further £16bn-£20bn.
Public bodies that employ more than 250 people will be expected to report their figures by the end of October in time for this year's pre-Budget report.
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