Virtualisation specialist VMware has published some research that will make disappointing reading for IT contractors.

Ahead of the Spending Review due to be published later this month, the firm has claimed that the proposals will see public sector security budgets slashed by more than 22 per cent.

This is certain to have an impact on the number of temporary workers, such as IT contractors, that the public sector can take on, as the government looks to save around £3.6 billion.

While IT may be seen as a natural target for cost saving, VMware managing director Mark Newton said that IT will also be important in reducing operational costs across the board.

"There is a golden opportunity here for major, almost immediate, cost-savings by looking towards IT," he said.

The latest report from the Recruitment & Employment Confederation finds that jobs growth in the UK has nearly ground to a halt in recent months.