Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
The NAO reported that the Department’s digital strategy was initially not fully funded, but the...
Recommendation
The NAO reported that the Department’s digital strategy was initially not fully funded, but the Department worked to identify ways to fund the strategy as well as reprioritise money to ensure that, as of its last budgeting cycle, it considered its strategy affordable.55 We put it to the Department that the impact of rising inflation means it can afford less with its existing budget. The Department explained that it was seeing cost pressures on pay settlements and raw materials both internally and in industry. As a result, it will be difficult to do all of its planned activity for the next financial year in full.56 However, the Department felt the longer-term trend for its spending will depend on the outcome of the refreshed Integrated Review in 2023.57 Given the severe pressure we feel the Department’s budget is under, we expressed concern that the money it has committed to digital might be subject to change.The Department reassured us that it can live within its means for the remainder of the current financial year and highlighted that digital transformation is the single top priority for senior leadership, who will want to protect the funding for it.58
Government Response Summary
Following the next update to the Integrated Review, the department will write to the committee explaining whether planned and actual spend on digital has changed and whether it has enough funding to deliver the strategy, targeting a Summer 2023 implementation date.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: The department’s budget is under considerable pressure, and this may make some planned, future digital activity unaffordable. 5. PAC recommendation: Following the next update to the Integrated Review, the department should write to us explaining whether planned and actual spend on digital has changed and whether it has enough funding to deliver the strategy. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2023 5.2 The department is working through the supporting planning process for the refreshed Integrated Review; it will provide an update on the impact to the implementation of the department’s Digital Strategy following the publication of the refreshed review. In the meantime, the department is focused on making the best use of the existing funding for Digital to deliver the Digital Strategy and portfolio with pace and intensity.