The conversation around digital transformation in government continues to grow louder, and this year’s Building the Smarter State conference, hosted by techUK, showed just how urgent the agenda has become. Much like last year, optimism was high, but the recurring theme was clear: collaboration and trust remain the bedrock of reform.
At the heart of discussions was the government’s Blueprint for Modern Digital Government, launched in January 2025. The plan sets out a six-point strategy to deliver more efficient, joined-up public services. The first step is service integration—ensuring citizens no longer need to contact multiple departments for simple tasks like a change of address. Other priorities include embedding AI in public services, bolstering digital infrastructure, and strengthening cyber resilience.
To deliver these ambitions, the government consolidated several digital bodies into a single Government Digital Service (GDS). This “centre of digital expertise” brings together specialists in service design, AI, and geospatial data to drive reform. Alongside this, the State of Digital Government Review revealed the scale of the challenge: despite £26bn spent annually on digital and data, and a workforce of 100,000 specialists, public satisfaction with services has fallen from 79% to 68%.
Why? Citizens face “interaction frustrations.” Services remain fragmented, and legacy systems—still running 28% of central government functions and nearly half of NHS services—block progress. Without data integration, ambitions like AI and advanced analytics will stall.
From cost-saving to value creation
The conference also highlighted a deeper cultural challenge: the instinct to measure transformation through cost reduction. While automation and AI offer efficiency gains, equating success with headcount cuts risks undermining the mission. As HMRC’s James Mitton argued, the government must pivot from a “cost-saving” mindset to one focused on “effective gains”—how digital change complements broader policy and organisational goals.
The National Audit Office’s Improving Government’s Productivity report underlined this point. The UK Government spends £450bn annually on operations, yet many departments lack granular visibility of service costs. Without that insight, identifying inefficiencies or judging the ROI of digital projects becomes guesswork. This gap risks derailing the ambitious efficiency targets set in the Spending Review 2025.
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By GlobalDataThe people problem
Even if strategies are clear, delivery depends on people. Digital and data roles in central government have grown from 3% in 2021 to 6% today, but this still lags behind private sector benchmarks of 8%–12%. Recruiting and retaining talent remains tough: salaries trail the private sector by up to 40% in some roles, while professional development opportunities are patchy.
This skills gap undermines transformation efforts and risks leaving government reactive rather than proactive. Technology evolves quickly, but slow decision-making and limited in-house expertise create delays. This is why collaboration—between departments, industries, and partners—is so critical.
Beyond buzzwords
A recurring critique was the overuse of vague terms such as “ambition”, “collaboration”, and “transformation”. What’s missing are metrics—clear evidence of progress. Without concrete measures of success, conversations risk becoming repetitive and accountability slips.
For industry partners, this gap is also an opportunity. Vendors and consultants who can demonstrate leadership, deliver measurable outcomes, and provide frameworks for assessing progress will be well-placed to support the government. There is particular demand for solutions that enable joined-up services and provide transparent metrics to track success.
Where next?
As the GDS prepares to launch its digital roadmap later this year, expectations are high. Integration projects with DWP and DHSC—linking systems across dozens of services—show the kind of transformation possible. But for real change, government must shift from aspirational statements to measurable action. The smarter state won’t be built on ambition alone. It requires collaboration across departments, clear accountability, investment in skills, and above all, a mindset shift: from cutting costs to creating value. Only then will digital transformation deliver the seamless, citizen-focused services the public expects.
