UK government hasn't the foggiest how much it's spending on digital transformation

The UK government struggles to quantify the spending on digital transformation across its departments and public bodies, according to a recent report from the Science and Technology Committee. The committee's June report highlighted the fragmented nature of spending and the absence of a clear plan for a digital state. Public sector spending on digital technology exceeds £26 billion annually, but this broad figure lacks a detailed departmental breakdown.

The government has acknowledged the need for annual data on digital and data-driven spending but doubts current finance systems can deliver consistent, reliable, and comparable figures. Committee Chair Dame Chi Onwurah emphasized the lack of transparency in government spending and urged the administration to create clear leadership to drive digital transformation across the public sector.

The committee also criticized the government's decision to end Palantir's involvement in the NHS Federated Data Platform (FDP), expressing concerns over sovereignty and vendor lock-in. The government has stated it will review the FDP contract but has not committed to an early exit, insisting that any decision would need to comply with contract management processes and public procurement laws.