Compensation for the Post Office victims and technology's role in boosting the NHS and public services were announced in this week's historic Budget delivered by the first female Chancellor, Rachel Reeves. Claire Penketh, BCS' Senior Policy and Public Affairs Manager, has this analysis.
The headline points in the Chancellor's speech relating to the tech were:
- £1.8 billion to compensate victims of the Post office Horizon scandal, which the Chancellor said would be long overdue for the' pain and injustice they have suffered.'
- Over £2 billion for NHS technology and digital improvements.
- An 18 per cent rise to the minimum wage for apprentices, which we welcome as an end-point-assessor of Digital Apprenticeships.
- Investing in technology to modernise HMRC and the civil service.
- Protecting more than £20bn of science research and development funding.
- Funding for 11 new green hydrogen projects in England, Scotland, and Wales.
- The establishment of a National Data Library.
Reacting to the speech, BCS CEO Rashik Parmar said: "Investing in tech for the NHS, HMRC, and other public bodies is vital to speed up and enhance the quality of services people rely on. But alongside funding for AI and data, we need investment in the skilled digital professionals who will run these systems and must be competent and ethical. This tech impacts our money, jobs, security and well-being, so accountability is non-negotiable.
"We must learn the lessons from the Post Office injustice; new tech investment must be managed by professionals held to independent standards to secure the trust we need in this transformational technology."
Post Office compensation
Looking more closely at the entire Budget, released shortly after the Chancellor's speech, entitled Fixing the Foundations to Deliver Change, we see more details on compensating the Post Office victims and replacing the Horizon IT system.
The government expects the total redress to reach 'around £2 billion, an increase from the £1 billion previously committed'. The final figure, the government said, will depend on how many victims come forward and their specific circumstances.
Interestingly, the settlement also provides over £70 million of additional investment towards replacing the Post Office Horizon IT system that is still in use. We look forward to seeing what that will entail and again emphasise the need for qualified, registered, competent IT professionals to ensure this new system does not repeat past mistakes.
Health service
The NHS received a £22.6 billion increase, with more than £2 billion earmarked for technology and digital. The government said this would 'free up staff time, ensure all Trusts have Electronic Patient Records, improve cyber security and enhance patient access through the NHS App'.
The announcement included:
- £1.5 billion to fund new surgical hubs, which will help build capacity for over 30,000 additional procedures and more than 1.25 million additional diagnostic tests (which use CT or MRI scanners)
- £70 million to invest in new radiotherapy machines to improve cancer treatment.
- Over £600 million increase in local government spending to support social care.
A government consultation is underway to inform a 10-Year Health Plan and is due to be published in spring 2025. We will respond to the consultation, which will be informed with expertise from the BCS Health and Care Faculty. We will respond by discussing the best lines to take with the Health and Care Faculty.
BCS believes a long-term plan for digitalisation must be embedded in the 10-Year Health Plan. Getting this right requires careful planning and implementation, and IT professionals are central to these changes.
This transformation requires high-level expertise and a deep understanding of ethical standards, essential for sensitive processes like sharing patient data.
Funding for AI and automation must also include substantial investment in skilled digital professionals who implement and guide these technologies at all levels.
There was no specific announcement of funding for the digital transformation of social care, without which our experts believe NHS will continue to struggle. The BCS, Health and Care Faculty recently published a report, Transforming adult social through digitalisation, recommending the government commit to a sustainable strategy for the digital transformation of health and social care.
Apprenticeships
As an end-point assessor of Digital Apprenticeships, we welcome the 18 per cent rise in the minimum wage for apprentices to £7.55 an hour. We believe it's essential that their pay reflects the role and level of their work. We believe it could be an issue for SMEs, but other incentives could be offered to counterbalance the wage cost.
We will participate in future consultations with Skills England as it strives to ensure that levy-funded training meets the needs of employers, providers, and learners.
Digital transformation of government services
The Budget reiterated the government's vision to use technology to improve public service delivery and save millions in areas such as HMRC and the Department for Work and Pensions.
The Department for Science, Innovation, and Technology is tasked with driving what the government calls 'a renewed strategy for digital transformation.' The settlement for DSIT, the government said, is 'equivalent to an annual average real-terms growth rate of 6.5% from 2023-24 to 2025-26.'
Part of this digital transformation of public services includes investing in modernising IT and data systems to improve HMRC's productivity and the taxpayers' experience in dealing with the tax system.
£80 million is to be invested in supporting the transformation of corporate functions across government. There’s also a commitment to develop a strategic plan for a more efficient and effective civil service, which includes improving skills and harnessing digital technology to drive better outcomes for public services.
Research and development
The Budget acknowledges the UK's 'extraordinary strengths in science and innovation' while noting that we're not doing enough to capitalise on these strengths. The Budget settlement means the government's R&D investment is protected to the tune of £20.4 billion for 2025-26, with at least £6.1 billion of support for core research.
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The Budget also says this will fully fund the UK's contribution to the EU Horizon programme—the world's largest research cooperation programme, which we rejoined last year.
While it's excellent that current levels of R&D funding are protected, some critics say that without an increase, the UK will continue to lag behind other countries that devote a higher percentage of the GDP to this area. They warn that not increasing funding will affect our global competitiveness.
It was also announced that the government will extend the innovation accelerators programme in Glasgow, Manchester, and the West Midlands via Research England, other research councils, and the national academies.
Green energy
The government confirmed support for two electrolytic hydrogen projects in Scotland, Cromarthy and Whitellee, and two in Wales, Milford Haven and Bridgend, to support low-carbon hydrogen production and directly create high-quality local jobs.
The Budget acknowledged that upgrading the national grid is 'central to unblocking private investment, delivering growth in clean energy industries and other growth sectors like AI, data centres, and manufacturing.'
But there were no big announcements around what such an upgrade would entail or funding, besides saying that the government 'is working with new National Energy System Operator (NESO) and Ofgem to develop a robust grid connection process.'
National Data Library
The government is creating a National Data Library, which it says 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.'
This was trailed in the Labour Party's manifesto, which aims to centralise existing government research programs, thereby enhancing scientists' and academics' access to public sector data. Unlocking such data has enormous potential to shape policies around health and other public services and support the development of the UK's artificial intelligence sector.
However, as the IT professional body, we urge the government to ensure strong safeguards and that all the public benefits from this initiative.
AI
The speech contains little more specifically on AI other than the government is due to publish the Artificial Intelligence Opportunities Action Plan, which will set out a roadmap to capitalise on how AI can deliver growth, productivity, and better services for the public.
Conclusion
Technology will be at the heart of everything the government hopes to achieve. We believe that anyone with a significant role in information technology should prove their accountability by being professionally registered. This includes leaders who use technology in critical national infrastructure like health, defence and other public services. In practice, that commitment means becoming Chartered, just as we expect for accountants or engineers.
The Spending Review and the 10-Year Health Plan will further clarify how the government intends to implement its plans, as will the Industrial Strategy, which is another consultation we are also responding to. BCS will continue to offer our recommendations to the government, backed up by the expertise of our members.
What do our health experts say?
Tito Castillo is an Enterprise Architect and Data Management Consultant, and he has worked extensively in the health service. Tito is the lead member for policy on the BCS Health and Care Faculty Board – and here he gives us his personal response to the Budget.
In the recent budget, Rachel Reeves, the Chancellor of the Exchequer, has committed the government to “fixing the foundation” and delivering value for money in public spending. This isn’t a new ambition; successive governments have made similar commitments, with mixed results.
The uplift in funding is of course welcome for the NHS. However when it comes to funding for specifics – such as the £2b for digital transformation – time will tell as to where and how the money will be spent.
To give confidence that the current government’s commitment will be successfully delivered when it comes to the NHS, several key changes are necessary:
- Firstly, there needs to be a stable and coherent strategic direction. Frequent changes in policy driven by political considerations rather than sound business sense have historically disrupted long-term planning and execution. A clear, consistent strategy that transcends political cycles is essential for sustained progress.
- Secondly, the public sector must attract and retain a workforce with the right skills and motivations. This has been a persistent challenge, particularly in areas requiring specialised digital and technological expertise. Competitive salaries, professional development opportunities, and a supportive work environment are crucial to building a capable and motivated workforce.
- Thirdly, procurement regulations need to be streamlined. The current system is often costly, time-consuming, and cumbersome, which hampers the ability to quickly and effectively implement new technologies and solutions. Simplifying procurement processes and reducing bureaucratic red tape can significantly enhance efficiency and responsiveness.
How the BCS can help
BCS, as the Chartered Institute for IT, has a wealth of expertise in digital transformation. This includes knowledge of best practices, frameworks, and methodologies that can be applied to public sector projects. By leveraging this expertise, BCS can help ensure that digital transformation initiatives are well-planned, effectively executed, and aligned with strategic priorities.
