Government to announce ad spend cuts

The government is expected to announce substantial cuts in ad spend in this week’s pre-budget report.

The government is looking to cut its communications bill by as much as 25% in a bid to save costs, according to reports.

Gordon Brown is to announce next year’s communications budget in a speech tomorrow.

Reports also suggest that the Department of Health is looking to slash its communications budget by around £50 million.

Last year, the Central Office of Information (COI), which provides publicity services to UK government departments, spent around £211 million on advertising – an increase of 35% on the previous financial year.

During the recession, Government agencies have been one of the biggest spenders with hard-hitting campaigns such as the ‘help protect against the spread of swine flu’, according to a recent report by Nielsen.

The report pointed out that a new Conservative government would also make substantial ad spent cuts next year, which will in turn knock revenue recoveries elsewhere in the market.