Select committee: Public Accounts Committee
Recommendation 34
27th Report - Government’s relationship with digital technology suppliers
Published 6 Jun 2025
Addressed to HM Treasury
Public Accounts Committee Government’s relationship with digital technology suppliers All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The NAO found that government will need to adopt wide–ranging changes to how it approaches digital commercial activity, which reflect the changing reality of technology markets. For example, it will need to understand its negotiation levers more fully, understand more clearly how the centre of government and departments can work together, and focus more on developing requirements in advance of contract awards.59 The Cabinet Office told us that government “underestimate[s] quite often” the pace at which technology moves on, and as a result comes up with quite static requirements. It accepted that it had not built agility into the way in which contracts move with the technology.60 57 Qq 28–29 58 Qq 28–29 59 C&AG’s Report, paras 10, 12, 14, 17 60 Q 27 21
From: Public Accounts Committee, 27th Report - Government’s relationship with digital technology suppliers (HC 640), 6 June 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Twenty-seventh Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 6 August 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty-seventh report from Session 2024-26
Published 18 September 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it "agrees with the Committee's recommendation" on each of the recommendations in the report, with most carrying a target implementation date of December 2025.
- On roles and responsibilities, it says the Digital Commercial Centre of Excellence (DCCoE) has been launched as a joint Cabinet Office and DSIT team and is "working to formalise the roles and responsibilities" between digital and commercial teams.
- On skills, it sets a three-phased approach for the Government Commercial Function: a first phase by September 2025, a second by March 2026, and a final phase "to be confirmed".
- On the Digital, Data and Technology Playbook, it says a team is working with GDS "to launch a publication in December 2025", bringing it up to date with current practices.
- On spending data, it says the GCF Digital & Data Team "will set out the process" to use commercial insights from data held across government, with "further detail" to be provided to the Committee in December.