UK government admits lack of clarity on digital transformation spending
The UK government has acknowledged that its finance systems fail to provide consistent annual data on digital transformation costs. Despite spending over £26 billion annually on digital technology, the government told the Science and Technology Committee that comparable departmental breakdowns are currently impracticable. This fragmentation complicates value-for-money assessments, prompting calls for improved transparency as ministers seek taxpayer funding for new tech initiatives.
Key points
- The UK government stated that existing finance systems cannot provide consistent, reliable, and comparable data on digital spending across departments.
- The public sector spends more than £26 billion annually on digital technology, but this figure lacks a detailed departmental breakdown.
- The Science and Technology Committee warned in a June report that spending is fragmented and the government lacks a clear plan for a digital state.
- Committee chair Dame Chi Onwurah criticized the lack of transparency, noting that ministers cannot clearly show where taxpayer money is going or how value is measured.
- The government agreed to work with HM Treasury to develop annual data publication over time, describing it as a direction of travel rather than an immediate fix.
The UK government has revealed that its current financial infrastructure struggles to track the full extent of its digital transformation efforts. In a response to the Science and Technology Committee, officials acknowledged that existing finance systems cannot produce consistent, reliable, or comparable annual figures for digital spending across various departments and public bodies. This admission follows a June report from the committee, which highlighted that while the public sector spends more than £26 billion annually on digital technology, the data is fragmented and lacks a clear strategic plan for a digital state.
Dame Chi Onwurah, chair of the Science and Technology Committee, expressed frustration with the lack of transparency. She noted that while there is significant hype regarding technology’s potential to improve public services and reduce costs, the government cannot provide a clear picture of where funds are allocated or how value for money is being measured. This opacity is particularly concerning as ministers continue to ask taxpayers to fund significant new investments in technology.
In its response, the government agreed with the committee’s intent to publish annual data on digital and data-driven spending but argued that it is not currently practicable. The government stated it is open to this as a direction of travel and will work with HM Treasury to consider how such data collection could be developed over time. The committee is set to address Parliament on Thursday, where it is expected to press for more immediate accountability in digital public spending.
Sources
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