The Spring Statement had few tech announcements, but those it did contain have far reaching implications for revolutionising the civil service, public services and the defence sector. Claire Penketh, BCS’ Senior Policy and Public Affairs reports.
The Chancellor confirmed the creation of a £3.25 billion Transformation Fund to support the fundamental reform of public services by using technology.
As part of this package the Government announced the following measures that included:
- Embracing the power of digital technology and AI tools across government including a commitment that 1 in 10 civil servants will be digital professionals by 2030.
- Providing £42 million for three pioneering DSIT-led Frontier AI Exemplars. These will test and deploy AI applications, with the aim of making government operations more efficient and effective, and reduce what the Treasury called unnecessary bureaucracy.
- Supporting the management of offenders in the community, by providing £8 million for new technology so probation officers can focus on reducing reoffending, rather, the Treasury said, than filling out forms.
Cost savings
The Government has said departments will reduce their administrative budgets by 15% by the end of the decade. There will also be £150m for Government employee exit schemes.
This, it says, will result in savings on back-office functions that will total £2.2 billion in 2029-30 and ensure that front line services are prioritised.
BCS Fellow and AI Expert Sarah Burnett said: “The Chancellor's ambitious £3.25 billion transformation fund, with its focus on integrating AI into government operations, presents a fantastic opportunity to modernise public services. In the private sector, companies that have successfully implemented AI, report huge benefits. For example, processes that took 30 minutes before reduced to just 5 minutes after transformation with human-in-the-loop.
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“No organisation can afford to ignore potential benefits of this scale but transformation requires a robust strategy to avoid unintended consequences. It's essential to prioritise ethical development and ensure that the workforce is equipped with the necessary skills to thrive in this new digital landscape."
BCS Fellow Dr Bill Mitchell OBE added: "We welcome the government’s plan for one in ten civil servants to become digital professionals.
“For the government to achieve systemic digital transformation it’s also essential that AI is treated as part of the team rather than a replacement of the team.”
HMRC changes
The Chancellor also announced there will continuing investment in cutting-edge technology to clamp down on tax avoidance and set out plans to increase the number of tax fraudsters charged every year by 20% which, she said, could raise £1bn.
The Treasury said there will be an innovative test and learn pilot to collect older debts, and a move towards more automated debt recovery. It also outlined other tech-enabled measures such as introducing voice biometrics, using AI in customer services and compliance, and running a customs digitalisation pilot sharing.
Defence
The Chancellor announced that defence will be at the heart of the modern industrial strategy and said that this will “drive innovation that can deliver huge benefits back into the British economy.”
The defence budget will be increased by £2.2 billion in 2025-26, taking additional spending on defence to over £5 billion since the Autumn Budget.
A part of the package there will be a minimum 10 percent ringfenced for equipment spending on emerging technologies like drones and autonomous systems, dual-use technology, and AI-powered capabilities.
The aim, the Chancellor said is to make the UK “a defence industrial superpower” providing a boost to the skills, jobs and opportunities of the future.
This is necessary, she said because of the “world that is changing before our eyes,” due to increased global instability, including the Russian aggression in Ukraine.
The Treasury pledged to cut down on bureaucracy, such as long and complicated procurement processes, with a new UK Defence Innovation unit within the Ministry of Defence. This will lead efforts to identify promising technology and ensure these get to the frontline at speed, in a move that the government hopes will boost the UK tech sector, including start-ups.
And the payback for the UK economy could be significant as the government believes this investment will also boost GDP by 0.3% higher in the long run, equivalent to around £11 billion of GDP in today’s money.
