UK Government Keeps Lid on Marketing Budget

The UK government has confirmed that the temporary spending controls it imposed on public sector advertising, marketing, communications and research budgets during its first year in office, will now become a 'permanent feature', until at least the next general election.

Early yesterday, before meeting with twenty government suppliers representing around £15 billion of central government contracts, Cabinet Minister Francis Maude (pictured) said the spending controls had already saved £3.75 billion, and have helped government procurement become more 'business like'. Maude claims that total savings of £5 billion are likely by the end of the government's first term.

Last year, ahead of its closure this spring, the government's communication arm the Central Office of Information (COI) achieved a 68% reduction in its marketing spend, along with a 65% reduction in research spend to £9.5m from £27.4m the previous year. For the year 2008/9 the Department spent £29m on research, and had 108 agencies from across the UK on its research roster.

During yesterday's meeting, suppliers were briefed on the expanded Cabinet Office team of negotiators, known as Crown Representatives, who are tasked with maximising the government's leverage for bulk discounts. This team also holds information on suppliers' past performance, with those registered as having delivered poor performance finding it difficult to secure new contracts.

Maude commented: 'I want Whitehall procurement to become as sharp as the best businesses. We won't tolerate poor performance and to work with us you will have to offer the best value for money.'