UK Inquiry Tracker

Digital transformation in government: addressing barriers to efficiency

Public Accounts Committee Closed Inquiry

Opened: 29 Mar 2023 Closed: 18 Nov 2023 Parliament page

One of government’s main challenges is achieving efficiency savings. The civil service employs over half a million people in the UK and runs diverse operations and services that range from collecting taxes and processing benefits claims to, for example, granting rod fishing licences. In 2020-21, central government departments expected to … Read more One of government’s main challenges is achieving efficiency savings. The civil service employs over half a million people in the UK and runs diverse operations and services that range from collecting taxes and processing benefits claims to, for example, granting rod fishing licences. In 2020-21, central government departments expected to spend £456 billion on these day-to-day running costs of public services, grants and administration. The Government has established a new Central Digital and Data Office (CDDO) which the NAO has found in its report is laying good foundations , but many of the critical and more challenging milestones lie in the future. CDDO’s small budget and headcount are already affecting the intended reforms to government central functions’ treatment of digital programmes. In addition, departments are finding that, in current market conditions, they cannot acquire sufficient digital skills and expertise in their teams. Dame Meg Hillier MP, Chair of the Committee of Public Accounts, commenting on the NAO report, said “It's very encouraging to see the Central Digital and Data Office has taken on my committee’s feedback on digital transformation in government and how fundamental barriers must not be ignored. Today’s NAO report shows it has begun to address the underlying issues which have frustrated previous attempts to transform and has helped departments secure funding for investment in digital change over the next three years. While it has laid the foundations, it is now up to departments' business leaders to step up and understand what is needed to lead digital change so government can achieve real efficiencies.” The Committee will question officials including from the CDDO on how government plans to address the issues underlying why past attempts at digital transformation have experienced problems. The Committee will look at: the current landscape, drivers for change and government’s new approach how government is undertaking its new approach how the Roadmap is addressing key challenges to digital transformation. If you have relevant evidence to inform the Committee’s questioning of senior officials at the Cabinet Office on these issues, please submit it here by 23:59 on Tuesday 9 May. Please have a look at the requirements for written evidence submissions and note the Committee cannot accept as evidence material that has been published elsewhere. Show less

14 Recommendations

11 Conclusions

1 Report

1 Oral session

2 Letters

1 Event

Activity timeline 6 events

18 Nov
2023

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Seventieth report from Session 2022-23

13 Sep
2023

Report published

Seventieth Report - Digital transformation in government: addressing the barriers to efficiency

11 Sep
2023

Correspondence

Correspondence from Paul Lincoln CB OBE VR, Second Permanent Secretary, Ministry of Defence, re Delivery the digital strategy update, dated…

19 Jun
2023

Correspondence

Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary, re Digital Transformation …

22 May
2023

Oral evidence

Digital transformation in government: barriers to lasting efficiency

22 May
2023

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Digital transformation in government: barriers to lasting efficiency

Oral evidence sessions 1 session

22 May 2023

View on parliament.uk

Digital transformation in government: barriers to lasting efficiency

Alex Chisholm · Cabinet Office Megan Lee Devlin · Cabinet Office Paul Willmott · Cabinet Office

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Seventieth Report - Digital transformation in government: addres…	HC 1229	13 Sep 2023	25	Responded

Recommendations & Conclusions

2 results

3 Recommendation Acknowledged

Seventieth Report - Digital transf…

Incorporate digital responsibilities in senior appointment letters and appoint digital-expert non-executive directors.

The requirement for senior generalist leaders to have a better understanding of digital business has not been formalised, and training is not focused on how digital developments interact with the complex government operational environment. The continued engagement with digital transformation … Read more The requirement for senior generalist leaders to have a better understanding of digital business has not been formalised, and training is not focused on how digital developments interact with the complex government operational environment. The continued engagement with digital transformation of departments at permanent secretary level is essential to maintain traction. Setting up the Digital and Data Board is a good start, although we have heard that some permanent secretaries have been sending deputies. Committees on their own do not deliver anything if the right people do not attend and take required actions. We were also surprised to see that while the standard appointment letter for permanent secretaries includes reference to their financial responsibilities, it does not include anything relating to digital responsibilities. Ongoing capability building and training for senior leaders is essential. Various training programmes are being delivered, but the Digital Excellence programme has only recently been piloted and is not yet widely rolled out. Government acknowledges this area needs continual attention. Suitably experienced non-executives in board roles in departments are an excellent way to guide and educate senior leaders in digital matters. Around half of non-executive directors in government consider they have digital expertise but those with a background in similar legacy environments to departments will be most valuable. Recommendation 3: a) Digital responsibilities, such as improving digital services and addressing the highest risk legacy systems, should be included in letters of appointment at the most senior levels in all departments. The Cabinet Office should set out the steps it will take to work with civil service HR and other relevant stakeholders in writing to the Committee by December 2023. b) All Departments should appoint at least one non-executive director with relevant digital, data and technology transformation expertise to their Board. Show less

Government Response

The government agrees, but for digital responsibilities in appointment letters (a), it states CDDO will use learnings to understand adoption. For non-executive directors (b), it claims departments already benefit from existing NEDs with digital expertise, avoiding new appointments.

HM Treasury

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23 Conclusion Acknowledged

Seventieth Report - Digital transf…

Departments struggle securing sufficient resource funding for ongoing digital system maintenance and updates.

Departments find it easier to secure capital funding for new developments than ongoing resource funding to maintain systems and keep them up to date.59 Moving services to cloud-based providers introduces new pricing models with an increasing emphasis on ‘pay-as-you-go’, which … Read more

Government Response

The government agrees with the committee's observation on resource funding challenges. CDDO is engaging with HM Treasury and other functions to discuss these issues and plans to gather information on their strategies for digital reform.

HM Treasury

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Government Response AI assessment · 24 of 14 classified

Accepted 19

Acknowledged 2

Deferred 2

Not Addressed 1

Total 14 recs + 11 conclusions

Correspondence 2 letters

11 Sep 2023 Correspondence from Paul Lincoln CB OBE VR, Second Permanent Secretary, Ministry of Defence, re Delivery the digital strategy update, dated 31 August 2023

Parliament page

19 Jun 2023 Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary, re Digital Transformation in government: addressing barriers to efficiency, dated 7 June 2023

Parliament page