Chief Secretary to the Treasury Darren Jones announced that the UK government is set to overhaul its central finance system to enhance data sharing between departments and the Treasury. The initiative is designed to improve the accuracy and timeliness of financial data, thereby increasing productivity and aiding decision-making processes within the government.
Currently, departments manage their own financial tracking and performance metrics, subsequently submitting data to the Treasury through manual uploads and physical correspondence. This method restricts the Treasury’s access to real-time data, hindering its ability to monitor departmental spending and performance effectively.
Darren Jones, speaking at the Institute for Government, outlined the proposed changes, which aim to address these inefficiencies. The new system will provide ministers with live, real-time access to performance data at both departmental and programme levels. This will enable ministers to monitor spending and project delivery in real-time, ensuring that departments adhere to budgets and objectives.
“The Prime Minister been clear that the government will rewire the state, so that it better delivers on the people’s priorities, said Jones. “I am convinced that through investment and reform, we can deliver a more productive and agile state that delivers better outcomes for people and reduces the cost of running public services. That’s why as part of my wider reforms to public spending, HM Treasury will be using technology to analyse finance and performance data in real time and free up departments to focus on delivery instead of Treasury compliance reporting.”
AI integration and apprenticeships to modernise UK civil service
The reform is part of a broader effort to modernise and reform the state, following Prime Minister Keir Starmer’s recent unveiling of an AI strategy. This strategy seeks to integrate AI solutions into the civil service, replacing certain tasks traditionally performed by civil servants and contributing to a digital-first approach for public services.
The UK Secretary of State for Science, Innovation and Technology Peter Kyle indicated that a decrease in the civil service workforce is “almost certain” as government departments start implementing AI technologies.
“There is a £45bn jackpot to secure if we use technology properly across our public sector – but we can’t hope to come close to securing that if we don’t have the right technical talent with us in government,” said Kyle. “Not only will these changes help fix our public services, but it will save taxpayer cash by slashing the need for thousands of expensive contractors and create opportunities across the country as part of our Plan for change.”
Starmer also suggested the introduction of 2,000 technology apprentices to expedite AI integration within Whitehall. This initiative seeks to modernise government departments and ensure the presence of essential skills to enhance public services through technological advancements.
Read more: UK unveils AI strategy to transform public services and reduce workforce
