A new deal has been finalised between the Cabinet Office and Oracle which is expected to save the government a minimum £75 million by 2015.

The government currently spends over £200 million on software licensing deals with Oracle. The new agreement will see departments purchasing through the Government Procurement Service, who will then purchase software directly from Oracle.

Francis Maude, Cabinet Office minister, said: "The days of the government paying different prices for the same goods or services are over. We will no longer sign inflexible contracts that tie the taxpayer into unfavourable terms.