A new review will see the UK Government test a new funding model for public sector spending on technology and cybersecurity. It will take into account the spending and security risks posed by archaic systems that are no longer fit for purpose, it said.
The Government said how digital projects are funded in the public sector will be overhauled and simplified to cut down waste in taxpayer funding. It said that many digital projects face overly complex spending approval processes that can slow them down or prevent them from getting off the ground entirely.
The latest plans follow the publication of the Government’s blueprint for a modern digital government, which set out how technology will be used to improve public services.
The Spending Review 2025 will see government reshape how it measures the success of investment in digital projects” and offer bespoke digital training for teams preparing advice for ministers, with a view to better prioritising spending on technology.
The Government said this means embedding a start-up mindset. This, it said, will offer a route to simplify how its funds small AI projects.
From April, it will test out GOV.UK Chat, the government’s experimental generative AI chatbot, to provide “staged funding” for innovation. It is aiming for a more agile funding processes, to build and test an initial prototype more quickly. Progressing in stages, projects will be supported through larger and larger tests if early trials show the potential to save money and improve public services for citizens.
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There will also be “a strong focus on developing new outcome metrics and evaluation plans for major digital projects, to ensure that that these deliver value for money for the taxpayer.”
“Technology has immense potential to build public services that work for citizens. But a decades old process has encouraged short-sighted thinking and outdated tech, while stopping crucial innovation before it even gets going,” said technology secretary, Peter Kyle.
“These changes we’re making ensure innovation is the default. We will help give AI innovators in Government the freedom they need to chase an exciting idea and build prototypes almost immediately.
“This review will help us build technology that will mean businesses can skip the admin and get on with driving growth, digital systems supporting the police are more reliable so they can keep our streets safe, and it will mean we can build new tools to speed up wait times for doctors’ appointments and get the NHS back on its feet are built.”
The Government claimed one-in-four of the digital systems used by central government are outdated. For the worst affected organisations, this figure is almost triple that (70 percent). This outdated technology can rack up huge maintenance costs, resulting in the taxpayer paying out three-to-four times more than if the technology was kept up to date. A growing number of these outdated systems are “red-rated” for reliability and security risk, it said.
