Government freezes advertising and marketing budget

However, the "essential campaigns" to be continued.

Chancellor George Osborne has spelt out plans to freeze the government's £540m-a-year advertising budget for the current financial year. It is understood that the government, which unveiled details of £6.25bn of public sector cuts on Monday, has plans to axe the marketing and advertising spend from government departments and other affiliated agencies and bodies, by up to 50 per cent.

No decision has yet been taken on what would be considered as essential campaigns. Individual departments have been asked to set out the details of cuts in their marketing spends.

The government could bring down the budget of the central office of information - which is responsible for coordinating government marketing spend - by at least 40 per cent.

The government's savings plans, which will be overseen by the newly formed Efficiency and Reform Group, are also supported by the Institute of Practitioners in Advertising.