Local authorities in England are set to save £1.2 billion as a result of e-government investment, ODPM minister Phil Hope has said.

The money represents the total efficiency gains between 2001/02 and 2007/08 from the drive to make information on council services available online.

Hope also said that local authorities were expected to meet the target to be 100 per cent e-enabled by the end of this year.

The minister said councils were making "good progress" on e- government and the potential efficiency gains arising from this work.

"In over 100 councils, citizens can already go online to submit planning applications, check their council tax balance and calculate their benefits entitlement," he said.

"Our challenge for the next twelve months is to drive through the full benefits of e-government to help build the efficient and effective local councils that our communities deserve."

Hope's announcement was based on figures from December's "Implementing electronic government" survey which received a 100 per cent response rate from local authorities.

The report also showed that the average council is now 79 per cent e-enabled and are "overwhelmingly at amber or green" for implementing ODPM's targets for local e-government.