Public Sector: Digital Technology
The question
To ask the Chancellor of the Exchequer, with reference to the correspondence to the Chair of the Science, Innovation and Technology Committee from the Parliamentary Under Secretary of State of 10 April 2025, for what reason the projected £45 billion in annual savings from the digitalisation of public services was not included in the Spending Review 2025, published on 11 June 2025.
Answered by Darren Jones
The figure of £45 billion in annual savings and productivity gains, published in ‘A blueprint for modern digital government’, represents a long-term estimate of the potential benefits for the digital transformation of the public sector. Spending Review 2025 sets out plans for a step change in investment in digital and artificial intelligence (AI) across public services.
Over the Spending Review period, the government will build strong digital and technology foundations, tackle urgent cybersecurity and technical resilience risks, modernise public service delivery, and drive a major overhaul in government productivity and efficiency. All departments will deliver at least 5% savings and efficiencies by 2028‑29. The Office for Value for Money has worked closely with departments to agree bespoke and stretching technical efficiency targets, underpinned by credible delivery plans.
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