Government lacks comparable figures for digital transformation spending

The UK government says it cannot produce consistent figures for how much departments and public bodies spend on digital transformation. The disclosure has renewed concerns that ministers cannot track where technology funding goes or assess value for money, despite plans to invest in digital services.

Public sector spending on digital technology is estimated at more than £26 billion a year, but finance systems cannot provide comparable figures by department. The government says annual reporting is not currently practicable and will consider how to develop it with the Treasury. The committee also urged ministers to end Palantir’s NHS data platform contract early; the government will review whether to use an optional two-year extension, while saying any termination must follow contract terms and procurement law.