They're trying to cut departmental budgets by 25%-40%.
They're trying to reduce the civil service head-count by 30% or thereabouts.
There is no money for replacing anything that isn't a life-or-death emergency. They just axed all new school building and structural maintenance across the entire country. Leaking roofs aren't going to be fixed.
With all due respect, upgrading ten year old computer systems (that still work, after a fashion) is the bottom of their priority tree.
If nothing else, there's a general election due in (5 years minus 4 months) and counting. After which, the budget is someone else's problem.
Not quite. They axed the Building Schools for the Future programme which is only part of the school building budget.
Ultimately, this is good for the industry. Until companies like us start attaching a visible cost to IE6 support, these departments will not upgrade.