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The NAO reported that the Department’s digital strategy was initially not fully funded, but the...

Recommendation
The NAO reported that the Department’s digital strategy was initially not fully funded, but the Department worked to identify ways to fund the strategy as well as reprioritise money to ensure that, as of its last budgeting cycle, it considered its strategy affordable.55 We put it to the Department that the impact of rising inflation means it can afford less with its existing budget. The Department explained that it was seeing cost pressures on pay settlements and raw materials both internally and in industry. As a result, it will be difficult to do all of its planned activity for the next financial year in full.56 However, the Department felt the longer-term trend for its spending will depend on the outcome of the refreshed Integrated Review in 2023.57 Given the severe pressure we feel the Department’s budget is under, we expressed concern that the money it has committed to digital might be subject to change.The Department reassured us that it can live within its means for the remainder of the current financial year and highlighted that digital transformation is the single top priority for senior leadership, who will want to protect the funding for it.58
Government Response

A response document is linked to this report, dated 12 April 2023. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 3.6 yrs
Report published 03 Feb 2023