Government suffers IT rip off

A committee of MPs has found that a "cartel" of big IT firms have been "ripping off" UK government departments by overcharging.

The report revealed that some departments were paying up to ten times the real value of IT equipment. Some purchases of desktop PCs, it stated, were charged at around £3,000.

The committee descriped the spend on IT was an "obscene amount of public money," and blamed the larger IT companies for overcharging. The government confirmed it was making "significant improvements" to the way it bought IT services and hardware.

David Cameron and the coalition government have already pulled out of all schemes coming to more than £100m as they seek to cut the UK's budget deficit.

Departments have been advised to seek out small to medium IT businesses instead, in order to increase competition and cut costs.

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