With a reported £50 billion shortfall in public finances and a slowing economy, could technology investment play a role in supporting recovery?
Government figures show that archaic technology is costing the public sector about £45 billion in annual savings, which could help plug the gap in public finances. With the Autumn Budget just around the corner, political leaders should look at ways to reduce inefficiencies through technology, making our public sector more productive.
Building productivity through technology
Better public sector technology would benefit both taxpayers and civil servants. A social worker could spend less time on repetitive admin and more time supporting clients. With more efficient systems and better alignment, the NHS could operate more smoothly and help reduce treatment waiting times.
In the UK, 6.15 million people – around 18% of the workforce – are employed in the public sector, yet many still work with outdated technology. Expanding the use of modern tools could help lift productivity and make roles more meaningful. Instead of spending hours on routine administrative tasks like data entry or writing summaries, people could focus on their areas of expertise and deliver more value.
Balancing the books
Unlike in the private sector, profitability isn’t a measure of success in the public sector. Technology should be used to make it easier for people to do their jobs, deliver better services, and use public funds more efficiently.
While the public sector’s primary priority is service delivery, with the Autumn Budget on the horizon, public sector finances have come under sharp scrutiny. Huge public sector savings are needed, but the government also must balance reducing its overall bill with providing the outstanding service levels we have come to expect. Not only that, public sector services should also improve, to align with user requirements and expectations.
At this stage, the strongest solution is to invest in technology.
To make public sector budgets work harder and stretch further, streamlining technology can boost efficiency and ensure people have access to better-quality services when they need them. This kind of approach is more likely to gain broad support than cost-cutting measures that risk alienating parts of the electorate.
Spending to save
It may seem counterintuitive, but the best way for the UK government to save money is to spend wisely on technology, by making a strategic investment in efficiency-boosting initiatives that strengthen the public sector as a whole. While targeted tech upgrades can improve individual departments, lasting impact will require a bold, coordinated strategy that prioritises technologies capable of delivering the greatest cost savings and service improvements.
A well-executed strategy could deliver major gains across the sector: reducing costs, improving productivity, and phasing out outdated systems.
