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The Department told us government sees digital technology as a way it can make services...

Recommendation
The Department told us government sees digital technology as a way it can make services more affordable and that the Integrated Review in 2023 will inevitably focus on this.59 The Department hopes to use digital technology to transform how it runs itself and the Armed Forces, and has already assumed in its planning that it will achieve productivity improvements and cash savings.60 The NAO reported that the Department’s plans include a target to find £1.4 billion of cash from efficiency savings between 2023–24 and 2032–33, including £695 million from better supplier management. The Department appears to be on-track with this so far, but still needs to find £160 million more to meet its target.61 We asked the Department if it was realistic to find this much money through efficiency savings, such as those from better supplier management. The Department was confident that it will achieve its target because there are still economy of scale savings it can make. This is because it has not previously managed suppliers in a coordinated way and so it can increase its commercial leverage, and reduce prices, for example by buying software licences once for the whole Department.62
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