The UK government must fundamentally rethink how it funds, procures and modernises technology across the public sector if it wants to deliver meaningful reform, according to a new report from Re:State.
The report, From Legacy To Leadership: Upgrading The Digital State, argues that decades of underinvestment and fragmented digital strategy have left public services constrained by ageing systems that are increasingly expensive, inflexible and difficult to maintain.
The think tank said legacy technology should no longer be treated as a back-office IT issue, but as a major structural barrier to modern government.
“The State is inseparable from the digital technology it uses,” the report states, warning that governments of all political parties have failed to invest in software and digital infrastructure at the scale required to keep pace with modern expectations.
Legacy systems blocking transformation
According to the report, many public sector organisations remain trapped by outdated systems that limit their ability to redesign services, adopt AI tools or respond quickly to policy and operational pressures.
The warning echoes concerns raised in the Department for Science, Innovation and Technology (DSIT) review into the state of digital government, which found there is still no comprehensive picture of legacy IT across the public sector and that spending often prioritises new programmes over maintaining and modernising existing systems.
Re:State argues that this creates a cycle where departments continue layering new technologies onto fragile foundations, increasing long-term complexity and risk.
The report calls for a shift away from short-term project thinking towards long-term digital capability building across the State.
AI ambitions meet ageing infrastructure
The publication also raises questions about whether government can realistically scale AI adoption while core digital infrastructure remains outdated. It argues that many of the government’s AI ambitions risk being undermined by fragmented data environments, ageing software and inconsistent technology standards across departments.
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That challenge is becoming increasingly urgent as ministers push departments to use AI to improve productivity, reduce administrative burdens and modernise public services.
Re:State said successful transformation will require more than isolated innovation projects or pilot schemes, instead demanding sustained investment in foundational systems, data architecture and digital skills.
Procurement and funding reform
The report also criticises existing funding and procurement approaches, arguing they often discourage long-term modernisation.
According to Re:State, digital spending in government is still too frequently treated as a discrete programme cost rather than core national infrastructure investment.
The think tank is calling for wider reforms to how government commissions and manages technology, including procurement models that better support continuous improvement and platform modernisation.
It also argues that government needs stronger strategic digital leadership at the centre of the State to coordinate transformation efforts across departments and public bodies.
‘A deadweight of legacy IT’
The report describes legacy systems as a “deadweight” holding back the public sector’s ability to transform services and operate more efficiently.
It concludes that unless government addresses the underlying condition of its technology estate, wider ambitions around AI, productivity and public service reform are unlikely to succeed at scale.
