The Drum has learned that troubled Government quango Strathclyde Passenger Transport (SPT) is renegotiating its contract with retained advertising agency The Bridge as it looks to slash its marketing budget.

A spokesperson for SPT confirmed that it is set to cut marketing spend in a bid to save £2.5m from its budget.

“As a result of the continued financial difficulties SPT is under and the need to cut our budget in the next financial year by £2.5m, we’ve had to consider some areas of our future business. We anticipate a big reduction in advertising commitment and that will impact on the existing contract with The Bridge,” the spokesperson explained.

The SPT advertising account is one of the longest retained accounts in Scotland, and saw the Glasgow-based agency reappointed in June 2008 following a seven-month tender process.

At the time the agency was appointed on a three year basis which is set to expire next year should the two year extension not be taken up.

The Bridge chose not to comment on the contract negotiations.

SPT is the most recent Government body to come under scrutiny following the resignation of its chairman Councillor Alistair Watson following an investigation into his expenses claims including a ‘fact-finding trip’ to Manchester at the same time that Rangers FC was playing in the UEFA Cup final in the city.

The investigation was cited by Glasgow City Council leader Stephen Purcell as one of the reasons he chose to step down from his post, a claim that has since been queried and investigated by the Scottish press. Jack Irvine, founder of PR consultancy Media House was called in to represent Purcell in advance of his resignation.

Meanwhile, The Bridge has recently completed the new TV advert to promote ferry operator Caledonian MacBrayne.