Digital transformation in the UK public sector has never been more important. As citizens increasingly expect seamless, accessible and responsive digital services, organisations are working hard to meet these rising standards while navigating limited resources, legacy systems and evolving policy direction.
Our recent research, which draws on the views of 634 public sector workers from across central and local government and the NHS, sheds new light on where transformation is progressing well and where greater focus is needed. The findings offer a clear message: the sector has the right digital tools in place, but too many organisations aren’t using them to their full potential. Closing this gap between capability and impact is where real progress will be made.
A clear takeaway: technology only works when people can use it effectively
If government readers should remember one thing from our research, it should be this: progress isn’t just about acquiring new digital tools. It’s about integrating and effectively using the technology already in place to deliver better outcomes for citizens. While our research indicates that 58 percent of public sector respondents agreed they had been successful in integrating new technologies with existing systems, 58 percent also said they have the correct digital tools in place, but they could be utilised more effectively for stronger outcomes.
Many organisations report having strong digital foundations, but fragmented adoption, inconsistent use and a lack of interoperability limit their impact. To get more value from existing investment, local authorities need to strengthen digital skills, improve cross-team collaboration and ensure systems can speak to each other.
A blueprint for future public services
Formed as a digital transformation blueprint for the sector, the report calls for a more unified and strategic approach to building the next generation of public services with three key priorities standing out:
1. Break down silos and foster meaningful collaboration
Cross-departmental cooperation remains inconsistent as more than half (56 percent) agreed that poor communication and collaboration across departments were impacting transformation efforts, particularly at a local level where teams are often stretched and managing multiple service areas. Stronger collaboration will support smoother delivery and help capture and share best practice.
2. Make better use of data to inform decision‑making
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Data analytics and AI are seen by 39 percent of public sector workers as the most important enablers of future digital services. Yet too few organisations are fully utilising the insights they already hold with just over half (56 percent) of public sector workers believing their organisation is effective at using data to drive decision making as confidence varies across local and central government. Improving how teams access, interpret and apply data will help transform services and target resources more effectively.
3. Strengthen digital literacy and leadership
Digital transformation is as much about people as it is about technology. Many respondents highlighted digital literacy (25 percent) and executive leadership (34 percent) as barriers to progress. Investing in ongoing training and providing clarity of vision from senior leaders will be essential to accelerating change.
What surprised us about the findings
Despite years of investment, satisfaction with digital services remains low in parts of the public sector. In the NHS and local government in particular, fewer than half of respondents said they were happy with current digital provision.
Another notable finding is the disconnect between senior leadership and frontline teams. Middle management is frequently cited as a barrier to progress, particularly in local government, reflecting the challenge of implementing change consistently at scale.
Where we need to look next
While the research highlights national trends, it doesn’t delve deeply into the local factors that influence transformation. Future research should examine how regional funding models and local policy decisions are impacting frontline citizens and shaping the services they rely on every single day. Understanding the citizen viewpoint directly will be crucial to designing services that truly meet local needs.
What public sector leaders should do now
Looking further ahead to this year and beyond, there are a number of key takeaways that public sector leaders can learn from the research. As new technologies continue to develop and the need to analyse citizen outcomes increases, optimising data‑driven decision‑making will be essential. This extends to breaking down internal silos and encouraging cross collaboration with departments to share best practice and understand what success looks like.
It’s clear that senior leadership hold the keys to communicating a clear and shared digital vision right across the organisation and individual teams. This is crucial for not only the adoption of new technologies such as AI and automation but also for encouraging teams to innovate at scale, in turn improving services for frontline citizens. But more than anything, investing in digital literacy and ongoing staff training are paramount for ensuring that no one is left behind and everyone is taken on the same digital transformation journey while involving everyday citizens. Together, these actions will help ensure that over the next 2-3 years, digital services are more joined‑up, accessible and reflective of what citizens expect.
