The Labour government’s mission-driven policy strategy aims to enhance digital transformation across the public sector; however, advancements in tech-enabled service delivery may be jeopardized by the impending threat of austerity.
At TechUK’s “Building the Smarter State” event held in London on September 10, industry leaders and public officials discussed that, despite the government’s mission-oriented approach being a positive step forward, new methodologies are necessary to effectively implement digital transformation and IT initiatives amid anticipated budget cuts.
Before the general election, Labour revealed its intention to initiate “the largest overhaul of Whitehall in decades” by dismantling departmental silos, focusing on five key “missions”: stimulating economic growth, establishing Britain as a clean energy leader, enhancing public safety, breaking down barriers to opportunity, and creating a future-ready NHS.
Although digital transformation and technology are not explicitly mentioned in these mission statements, attendees emphasized that a mission-focused strategy is vital for fostering future innovation and ensuring effective service delivery within financial constraints. They highlighted how this approach promotes deeper collaboration across government by providing clear objectives regarding IT outcomes.
Gill Stewart, Chief Digital Officer at the Ministry of Housing, Communities and Local Government, noted that a mission-driven approach serves as a guiding framework for aligning digital transformation initiatives. “We’re examining this through the lens of ‘what is the core mission, and what outputs must we deliver to achieve that?’” she explained. “This should positively impact problem-solving and encourage greater interdepartmental communication, breaking down previous silos.”
Simon Bourne, Chief Digital, Data and Technology Officer at the Home Office, shared that Labour’s mission-driven approach has initiated a “step change” in collaboration across policing and justice sectors. “For the first time, I’m witnessing robust conversations among various departments involved in the justice system, discussing how we can work together and share data. It’s early progress, but it’s definitely heading in the right direction.”
Karl Hoods, Group Chief Digital and Information Officer at both the Department for Energy Security and Net Zero and the Department for Science, Innovation and Technology, expressed that the mission-driven method promotes a holistic perspective on problem-solving in digital transformation. He emphasized the necessity of prioritizing deliverable projects within constrained funding. Additionally, he underscored the importance of continued investment in human resources and capabilities to achieve desired outcomes amid limited budgets.
Bourne reiterated the need for ongoing transformation within the public sector despite facing “financial pressure,” conveying that this situation presents a collective challenge to deliver enhanced transformations in a more effective and efficient manner. “We must take a step back, continue our growth trajectory, and explore how to achieve more with less,” he concluded.
In a discussion regarding necessary public sector workforce changes for successful digital transformation, Eddie Copeland, Director of the London Office for Technology and Innovation (LOTI), highlighted the impact of past Tory-imposed austerity on service delivery. He noted that since 2010, London’s population has increased by approximately 800,000 while local authorities have reduced their workforce by 54,000 due to a real-term budget reduction of 21%.
“Your average London borough manages around 3,000 employees while delivering 500 to 800 distinct services, all of which are crucial for social care, climate response, and crisis management,” he explained. “Thus, innovation is imperative within our scarce resources.”
Copeland emphasized the need for IT departments to abandon outdated service models and recognize that true digital transformation requires cultural change and a reevaluation of service approaches. “Organizations that succeed understand that digital must fundamentally alter service delivery,” he asserted.
Although he acknowledged the challenge of persuading local government to adopt significant IT changes amid budget cuts, Copeland stressed the importance of designing services that begin with residents’ needs and work backward to deliver effective digital solutions.
Regarding the recent Labour austerity measures—whose full impact will only be assessed after the 2025 Spending Review—questions arose about whether technological advancements, such as artificial intelligence (AI), can effectively offset potential cuts in public services and jobs.
Eilidh McLaughlin, Deputy Director of Digital Ethics, Inclusion, and Assurance in the Scottish government, indicated that the environment would be challenging, despite the possibility for innovation. “We need to utilize existing resources more intelligently,” she remarked. “By improving our understanding of data, we can enhance our targeting.”
Kamal Bal, Director of Digital at the Ministry of Justice (MoJ), pointed out that digital transformation doesn’t always require large-scale IT overhauls; even small adjustments can significantly improve job processes. He acknowledged that while major multi-million-pound projects would be harder to implement, smaller initiatives could lead to transformational changes.
Bal also highlighted the complexities of budget allocation: although successful digital initiatives can enhance productivity by reducing repetitive tasks, quantifying these savings for the Treasury remains a significant challenge.
In discussing the role of AI, John Bleasdale, Chief Architect of Government and Public Sector at Kyndryl, emphasized the company’s experience with “AIOps,” which automates operational tasks and has allowed 5,500 employees to focus on more advanced work, saving the company several hundred million pounds annually. According to data from Kyndryl, around 40% of UK government departments are currently utilizing AI for business operations optimization, with 45% planning to adopt it in the coming 18 months.
In a follow-up interview, Bleasdale noted that while public discourse often centers on large language models, the most impactful applications for government would involve improving business processes. He warned that the archaic nature of many public sector technology platforms complicates efforts to modernize, as the necessary procedural understanding is often outdated or poorly documented.
Moreover, Bleasdale pointed out that the implementation of AI in the public sector comes with unique challenges. While increased efficiency could free up thousands of workers, the implications for employment are concerning. “While AI can streamline operations, freeing many workers, we must consider the potential increase in unemployment,” he noted. “This presents conflicting challenges that future spending reviews may require policymakers to confront.”