ICT projects to benefit from capital receipt freedoms

Written by Colin Marrs on 8 January 2016 in News

Councils will be able to raise money for ICT revenue projects by selling off capital assets from April, the government has confirmed.

George Osborne’s Autumn Statement last year committed the government to changing rules which currently prevent capital receipts being spent on services.

And now the Department for Communities and Local Government has released guidance which restricts the spending to a number of areas – including digital – related to efficiency.

A list of projects which could generate qualifying expenditure, the guidance included: “Driving a digital approach to the delivery of more efficient public services and how the public interacts with constituent authorities where possible.”

Related content

Property disposals set to fund council ICT projects
KPMG post Spending Review webinar

Other projects could include investment in service reform feasibility work, projects which involve service sharing, including procurement, and improving systems and process to tackle fraud and corruption.

Setting up commercial or alternative delivery models to deliver services more efficiently and generate revenue is also included in the list.

Councils will be required to draw up new efficiency strategies in order to make use of the new powers.

These should list every project which plans to make use of receipts generated from capital sales, along with a cost/benefit analysis.

From 2017-18, the strategies will be required to include an assessment of whether projects approved in previous years have delivered the predicted savings.

The new powers will come into force in April, and councils will be barred from using receipts from capital sales made before that date.

Share this page



Please login to post a comment or register for a free account.

Related Articles

Ofcom to probe dominance of big three public-cloud players
26 September 2022

Communications regulator will examine whether the current market conditions stymie innovation and opportunities for smaller players

Death and digital assets: Ministers to consider law reform
26 September 2022

MoJ minister claims government is awaiting recommendations from advisory body, as private member's bill continues passage through parliament

HM Land Registry to smooth home-buying with digitisation
1 September 2022

Organisation plans to automate up to 70% of all ownership changes by 2024-25

Cabinet Office to lose one in four staff – but no detail yet on impact for digital agencies
23 August 2022

Jacob Rees Mogg trailed 25% job cuts in a Telegraph article, which unions label as the minister’s latest in a series of ‘increasingly bizarre’ pronouncements

Related Sponsored Articles

Rewiring government: improving outcome management
6 September 2022

Paul Pick-Aluas, Strategy & Transformation, Public Sector at Salesforce, explains how governments can use technology innovation to improve how it can analyse outcomes

Keeping tabs on work-issued mobile activity with Antenna
7 September 2022

How can public sector organisations keep track of calls, texts and instant messages in the world of ultra-flexi, hybrid working? Stuart Williams, CTO at FourNet, and Andrew Bale, EVP at Tango...