The UK government is set to transform the way it funds and manages artificial intelligence (AI) experiments and digital projects as part of its “Plan for Change,” aimed at cutting wasteful spending, fostering innovation, and providing more efficient public services.
A recent review revealed that outdated approval and funding processes have often hindered technological advancement and allowed inefficient systems to persist. In response, ministers plan to roll out four new approaches starting in April, designed to speed up innovation and improve the efficiency of public sector technology projects.
One of the key measures will be the introduction of “staged funding” for new initiatives. This approach will allow projects to be prototyped quickly and, if successful, scaled up based on clear benefits. This process is expected to eliminate bottlenecks and reduce the time it takes to bring new technologies into public services.
The government will also place a renewed focus on performance and outcomes, aiming to improve evaluation methods for major digital schemes. This will ensure that taxpayer money is spent more effectively and that investments lead to meaningful results, rather than funding projects that fail to meet their intended objectives.
To tackle the rising costs of outdated IT systems, a new funding model will be trialled for technology and cybersecurity. Research has shown that one in four IT systems used by the central government are outdated, with the figure rising to seven in ten in certain departments. These obsolete systems are often more expensive to maintain and can pose significant security risks.
Peter Kyle, the Technology Secretary, is expected to announce the reforms at techUK. Speaking ahead of the announcement, he said, “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 But a decades-old process has encouraged short-sighted thinking and outdated tech, while stopping crucial innovation before it even gets going.”
Kyle highlighted that the new approach would give AI innovators the freedom to quickly prototype ideas, potentially transforming services such as healthcare by speeding up processes like doctors’ appointments.
Darren Jones, Chief Secretary to the Treasury, added, “This government is determined that digital transformation of the state and our public services will deliver better outcomes for people and ensure every pound of taxpayers’ money is spent well.”
Looking ahead, the government plans to adopt a “digital first” approach for the next Spending Review in 2025. This strategy will prioritize digital initiatives when allocating funding to departments, while bespoke training for civil servants will ensure they can effectively advocate for digital spending that will drive genuine transformation and cost savings in public services.
