3 August 2010
The government today claimed to have saved almost £6.5m in advertising and marketing costs in just one month, but the move has led to hundreds of job losses.
Figures published by the Cabinet Office show a 52% reduction in advertising and marketing spend across government since June, when a freeze was implemented. It is the equivalent of almost £6.5m in savings compared with the same period last year.
Cabinet Office minister Francis Maude said the figures ‘prove that big savings can be made quickly by cutting out sometimes wasteful and unnecessary spend’. He added: ‘The days of spending millions of pounds on expensive projects are over.’
But the government body responsible for marketing and communications announced that it will reduce its staff numbers by 40% as a result of the move. Some 287 jobs will be lost at the Central Office of Information, reducing overall numbers from 737 to 450.
Mark Lund, COI chief executive, said: ‘COI has always adapted to meet the requirements of government and the changing media landscape. A leaner COI is in line with new government priorities.’
Under the government’s advertising and marketing freeze, only essential new and existing campaigns will be allowed to continue during 2010/11.
