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Budget sets 2% productivity gains target for central government

31/10/24

Mark Say Managing Editor

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Rachel Reeves
Rachel Reeves
Image source: Lauren Hurley, No 10 Downing Street, Open Government Licence v3.0

Chancellor of the Exchequer Rachel Reeves has set a 2% target for productivity gains in central government over 2025-26, along with the allocation of £80 million for the transformation of corporate functions.

In setting out the Government’s autumn Budget, she made it clear that this will involve investments in digital technology, referring to plans for a review of digital government and the creation of a National Data Library.

In her speech to Parliament, Reeves said: “Today we are setting a 2% productivity, efficiency and savings target for all departments to meet next year, by using technology more effectively and joining up services across government.”

The Budget document emphasised the role of the Department for Science, Innovation and Technology (DSIT), through which the Government will provide the £80 million investment. While it does provide specifics on technology it says this will involve the delivery of “more efficient, cost-effective and modern systems as part of government’s shared services strategy”.

DSIT has been given the responsibility for driving changes in digital, data and technology in central government, and is developing a “centralised and coherent approach to digital investment” in the phase two of the Spending Review, which is expected in Spring of next year.

Using data assets

Investments will include the development of a new National Data Library of public data assets.

“This will provide simple, ethical and secure access to public data assets, giving researchers and businesses powerful insights that will drive growth and transform people’s quality of life through better public services and cutting edge innovation, including AI,” the document says.

The document also refers to a handful of more specific plans for spending by departments and agencies, including: an unspecified amount for the development of digital jury bundles by the Crown Prosecution Service; £52m million for HM Revenue and Customs to digitalise the inheritance tax service from 2027-28; funding for the transformation programme of National Savings and Investments;  and money for HM Land Registry to spend on the digital transformation of land ownership records.

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