Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Deferred
The Department told us government sees digital technology as a way it can make services...
Recommendation
The Department told us government sees digital technology as a way it can make services more affordable and that the Integrated Review in 2023 will inevitably focus on this.59 The Department hopes to use digital technology to transform how it runs itself and the Armed Forces, and has already assumed in its planning that it will achieve productivity improvements and cash savings.60 The NAO reported that the Department’s plans include a target to find £1.4 billion of cash from efficiency savings between 2023–24 and 2032–33, including £695 million from better supplier management. The Department appears to be on-track with this so far, but still needs to find £160 million more to meet its target.61 We asked the Department if it was realistic to find this much money through efficiency savings, such as those from better supplier management. The Department was confident that it will achieve its target because there are still economy of scale savings it can make. This is because it has not previously managed suppliers in a coordinated way and so it can increase its commercial leverage, and reduce prices, for example by buying software licences once for the whole Department.62
Government Response Summary
The department will provide an update on the impact to the implementation of the department’s Digital Strategy following the publication of the refreshed Integrated Review in Summer 2023.
Government Response
Deferred
HM Government
Deferred
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.