The UK government is set to transform how technology is funded and managed in the public sector. The aim? To upgrade digital services for citizens and make operations more efficient.
The Government Digital Service (GDS) will see expansion and a new commercial function added. HM Treasury plans to test modern budgeting approaches for tech spending, moving away from old methods. New AI tools will help civil servants speed up decision-making across Whitehall.
“Sluggish technology has held back our public services, wasting both time and money,” stated Peter Kyle from the Department for Science, Innovation and Technology (DSIT). He emphasized the need for a more effective way of sharing information and collaborating within the public sector. Businesses will benefit too, as the government aims to reduce delays in applications for licenses and permits.
GDS will merge again with the Central Digital and Data Office (CDDO), which had been separated by the previous Conservative government in 2021. Two other teams, the AI Incubator and the Geospatial Commission, are also joining GDS now that Labour has taken control after the 2024 election. A new chief digital officer will be hired to oversee digital initiatives across government, filling the position left vacant since Mike Potter’s departure last September.
Kyle is introducing a “blueprint for a modern digital government,” targeting around £45 billion in efficiency savings. This plan aims to eliminate outdated processes that have stifled progress.
To streamline its £23 billion annual technology spending, a Digital Commercial Centre of Excellence will be created. This will also help local authorities collaborate more on contracts and open doors for tech startups to secure government work.
The Treasury will explore a fresh approach to budgeting that aligns with how modern technology operates. The goal is to implement a more flexible system that supports continuous improvement rather than sticking to rigid upfront costs.
DSIT will launch a framework to quickly find and implement AI solutions, removing barriers for smaller projects and facilitating broader AI adoption. Public bodies will also have new mandates to publish application programming interfaces (APIs) to enhance data sharing government-wide—a key recommendation made back in 2011.
Internally developed AI tools branded as “Humphrey” will assist civil servants. Inspired by the fictional character from Yes, Minister, these tools will include:
- Consult: Analyzes feedback from government consultations, offering interactive dashboards for better insights.
- Parlex: Aids in searching and analyzing records of parliamentary debates.
- Minute: Provides a secure transcription service for meetings, creating customizable summaries.
- Redbox: A generative AI tool to streamline daily tasks, including policy summaries and briefings.
- Lex: Summarizes and analyzes relevant legal documents.
Additional initiatives include forming a Technical Design Council and a Responsible AI Advisory Panel. DSIT plans to review salaries for digital roles to attract top talent away from the private sector.
Prime Minister Keir Starmer recently unveiled an AI action plan, promoting policies to leverage AI for economic growth and enhanced public services. Details will follow alongside the summer Spending Review, outlining tech priorities and a Digital and AI Roadmap.
Kyle reiterated that AI will be central to executing their vision for change: “We’re committed to using AI to enhance lives and stimulate growth.”
Liz Kendall, the work and pensions secretary, added that outdated tech hinders prompt support for those in need. She envisions modernizing Jobcentres with AI to provide tailored services for jobseekers.
These announcements come on the heels of a study from Bain & Company, which uncovered £45 billion in potential savings from better tech utilization in government, alongside findings that a quarter of current IT systems are outdated, leading to inflated maintenance costs.
The digital blueprint marks Labour’s first significant effort to reshape technology use in public services. Previous Conservative administrations made various promises on enhancing digital services but struggled with legacy IT issues.