Capita has warned that its sales would be weaker than previously anticipated as the government’s spending cuts start to bite.

Capita has previously stated that the squeeze on public sector spending would create small short-term pressure. The group provides IT services to local authorities to running the teachers’ pension scheme.

As well as tighter public sector spending, sales growth during 2010 would also be adversely affected by an “unusually high degree of revenue attrition” – the loss of existing customers and their associated contribution to turnover – and sluggish sales to date in the second half of the year.

Capita said the cuts would “subdue revenue growth in the second half of the year more than previously anticipated”.