Government IT efficiency drive faces scrutiny by NAO and PAC

The NAO will look in particular at the work of the Efficiency and Reform Group

The coalition government has been put on notice that its drive to secure greater efficiency and effectiveness from ICT projects will be subject to detailed scrutiny by the National Audit Office and the Commons' Public Accounts Committee.

NAO chief Amyas Morse said: "We will take a strong interest in future in how government is making the most of ICT to secure efficiencies and make possible new ways of delivering public services.

"At the same time, we will be looking at the steps being taken by government to rationalise its ICT, to achieve short-term cost savings."

The NAO will look in particular at the work of the Efficiency and Reform Group, set up in a hurry in June after the May general election.

The group is responsible for new initiatives, including the moratorium on central government signing new ICT contracts worth more than £1m without agreement from the Minister for the Cabinet Office; a mandatory review of all ICT projects currently under way to identify waste; and a drive to renegotiate contracts with suppliers.

PAC chair Margaret Hodge said her committee has urged greater use of computing to save money and connect citizens with services, "but, on far too many occasions, IT projects have gone badly wrong, and often for reasons that could have been avoided".

She said the committee will examine the result of the NAO reviews "to ensure that the recommendations we have made in the past are being acted on and that value for money is being delivered".

The NAO announced it will review the Efficiency and Reform Group's work and online services and evaluate the extent of shared services, including whether government users have become more effective in securing the full benefits of collaboration, and carry out in-depth investigations into government use of IT in individual organisations, including value for money studies.

In a detailed report it also indicated it will look to see full use is made of bulk buying power to reduce costs, that computing professionals play a more central role in government bodies and that civil service computing expertise is increased.

And it criticised the government's failure to take full advantage of cloud computing.