Government departments have been asked to draw up a “doomsday” scenario of 50% cuts to their administrative budgets, including property costs, by the end of July.

Chief secretary to the Treasury Danny Alexander has told cabinet ministers to submit plans for halving costs including spending on rents, rates, depreciation charge and property maintenance over the next four years.

This worst-case scenario plan would then be used if the cuts the government says it needs in October’s Spending Review are deeper than originally thought.

The best-case scenario for savings on departments’ so-called Administration Budgets is a 33% cut.

This budget also includes costs that are outsourced under private finance initiative agreements, or other accommodation contracts, preventing departments from trying to minimise the impact of administration cuts through using private sector services.

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