'Compulsory' e-government part of £15bn Whitehall review

Plans to squeeze efficiency gains of up to £15bn out of the workings of government could see people forced to use e-government services, and an overhaul in the way departments and local authorities use and buy IT.

The details of the government's efficiency review, which is being overseen by Peter Gershon, the head of the Office of Government Commerce, were conveniently 'leaked' to the Financial Times today at the same time as the Conservative Party unveiled its plans for tax cuts and reigning in public spending.

The review says e-government has so far failed to deliver any significant returns on the £8bn invested but highlights it as a key area for potential savings in the future.

One such way would be to make it compulsory for those who are 'e-capable' to transact online with the government for functions such as tax returns. Up to 60 per cent of current call centre inquiries could also be handled by automated systems, the report says.

IT functions could also be brought across government departments with common interests; and thousands of junior civil service jobs would be lost as the focus switched to more specialised and skilled senior positions.

The government's buying power could be exploited by the creation of a few buying agencies for central departments and local authorities responsible for the £120bn annual public sector spend.

IT companies including Hewlett Packard and IBM have been consulted on the proposals, according to the FT.

Savings would be redirected to the frontline of the public sector and the report also highlights the use of handheld computers as a way to deliver tangible time savings for doctors and the police.

If implemented, the government-wide reforms would represent the biggest shake-up of the public sector in more than 20 years. But Philip Virgo, secretary-general of the all-party Parliamentary lobby group the European Information Society Group (EURIM), said that would depend on the "political will" to do this.

He also said that forcing people to use e-government services, some of which aren't yet "fit for purpose", is not the way to go about it.

"If the systems are workable and usable, you won't need much compulsion from the working middle classes," he told silicon.com. "An awful lot of these systems, with regard to trying to communicate with the Inland Revenue and Customs & Excise, need to be sorted out."

Glyn Evans, head of the information age unit at local government user group the Society of IT Managers (Socitm), said bulk purchasing arrangements will remove choice and reduce competition from smaller IT suppliers.

"It doesn't strike me as being very customer-focused," he said. "I'm not saying there will be no savings but the cost is a loss of local flexibility. I also wonder whether it would get rid of the possibility of new players coming into the market because they aren't large enough to be bidding for a quarter of the government business."