The role of IT contractors will be critical in helping the government pull the country out of recession.

This is the view of the Recruitment & Employment Confederation (REC), which was responding to the government's announcement that it plans to cut IT spending by £95 million a year.

IT contractors can help the government in its delivery of frontline services, ensuring the processes remain efficient, the REC claims.

Cutting IT projects top save money now may even prove more costly in the long-term, according to Jeff Brooks, chair of REC Technology.

"There is also a concern that local authorities, who have to find their own savings, will contribute to the cuts package announced today by scrapping key IT improvement projects at a local level," he added.

The REC has repeatedly maintained in recent months that public bodies should seek to reform their operations through the use of flexible workers, rather than trying to cut costs by simply shedding jobs.