The Department for Science, Innovation and Technology (DSIT) is set for a significant funding increase in 2026-27, with new spending plans highlighting the government’s continued focus on digital transformation, AI capability and technology-led public service reform.
According to DSIT’s Main Estimate Memorandum for 2026-27, the department’s resource budget will increase by £242.3 million and its capital budget by £722.9 million compared with the 2025-26 Supplementary Estimate.
The funding settlement reflects DSIT’s dual role as both the department responsible for growing the UK’s science and technology economy and the government body leading digital transformation across the public sector.
Funding boost for government digital services
Among the most significant changes is additional funding for the Government Digital Service (GDS), which received a £117.2 million increase through the 2025 Spending Review settlement.
The memorandum states that the funding will support the government’s wider digital transformation agenda, including delivery of the Digital Blueprint for Government and the operation of common digital platforms used across the public sector.
The additional investment comes as GDS takes on a more prominent role in driving cross-government transformation, with ministers increasingly focused on the use of shared platforms, common standards and digital services to improve efficiency and reduce duplication across departments.
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The department also highlighted spending linked to machinery-of-government changes and the Matrix shared services programme, which is intended to consolidate corporate services and streamline operations across government.
Connectivity investment continues
The spending plans also include a £161 million increase in capital funding for Building Digital UK (BDUK), reflecting continued investment in broadband infrastructure programmes.
The funding will support ongoing efforts to expand gigabit-capable broadband coverage and improve digital connectivity across the country, particularly in harder-to-reach areas where commercial deployment remains challenging.
Supporting technology-driven growth
Beyond public sector transformation, the memorandum reinforces the government’s commitment to using science and technology as drivers of economic growth.
DSIT’s objectives include supporting research and innovation, developing strategically important technologies and strengthening the UK’s position in sectors such as AI, quantum technologies and advanced digital infrastructure.
The department argues that investment in these areas will help improve productivity, attract private sector investment and support the government’s broader growth ambitions.
