Top 10 government IT stories of 2024

1. Revamped DSIT to transform digital public services, says government

One of the first changes the Labour government made when it came into power was to revamp DSIT, expanding the size and scope of the department. This included bringing together experts in data, digital and AI, from the Government Digital Service (GDS), the Central Digital and Data Office, and the Incubator for AI.

Relaunching DSIT as the digital centre of government, the aim is for the department to maximise the potential of technology both within Whitehall and for all public services.

The government said it sees DSIT as a future “partner and standard bearer for government departments” in this regard, supporting them in the use of tech in areas such as education, energy, health and policing, and helping to upskill civil servants to incorporate digital tools – and AI – in their everyday work.

2. Labour axes £1.3bn AI funding promised by the Conservatives 

Labour’s decision to axe two tech and AI funds launched by the previous Conservative government was one of the early decisions to cause furore, and lead some to question its commitment to digital. 

The Conservative government had allocated funding up to the region of £900m for the AI Research Resource. The project had already received £300m in funding, but the government committed to a further £500m in the 2023 Autumn Statement. The other programme was the funding for the build of an exascale supercomputer at Edinburgh University, which had been given £800m in the 2023 Budget.

However, the Labour government said there had been no actual funding allocated for the supercomputer in the Conservative government’s spending plans, and that the further funding for the AI Research Resource would not materialise. 

3. Tech secretary pledges to ‘rewire Whitehall’ and plug the digital gap

In his maiden speech to Parliament, DSIT minister Peter Kyle vowed to create a smarter state through better digital infrastructure and technology decisions. He said that while the UK tech sector is at the forefront of innovation, the state keeps falling further behind.

“Every day, people in Britain are confronted with a glaring technology gap between the private sector and public services – a gap that has become impossible to ignore, between the personalised and paper-shuffling, the efficient and the inconvenient, the time-saving and the time-wasting,” he said, promising to “rewire” government.

4. UK government invests £106m in five quantum tech hubs

As part of its renewed focus on technology, the government announced in July that it would provide £106m for the creation of five new quantum hubs across the country.

The government hopes the hubs will bridge the gap between ideas and practical solutions to transform sectors such as healthcare and security, and create a culture of accelerated innovation.

DSIT said the government’s investment in these quantum hubs signifies a commitment to developing technologies that directly improve people’s lives.

5. Poor data and IT hamper cross-government working, PAC report finds

It may not be surprising, but the Public Accounts Committee’s report on the lack of integration across government is a prime example of what needs to be fixed.

The report said inadequate data, poor IT systems and departmental silos all impact collaboration, and found a lack of routine data sharing between departments is among the most common barriers to effective cross-government working.

“Many of the projects and programmes brought before the committee suffer from a lack of good-quality data or are adversely affected by government IT systems not ‘talking’ to each other,” the report said.

6. NAO head calls for clean data and modern government IT

In his annual speech to parliament, the National Audit Office boss, Gareth Davies, called for improvements in government IT procurement as part of a wider supplier management effort. Overall, he estimated that the government could save as much as £8bn through efficiency gains by better use of competition. 

He also urged policymakers to embed best practice across the wider public sector to secure further savings, and highlighted the failing inherent in “antiquated IT systems”. According to Davies, modernising government IT would improve the quality and shareability of data. Moving away from these legacy IT systems would also help to alleviate the pressure of recruiting and retaining scarce, in-demand skills.

7. UK government sets up AI action plan unit

One of the most significant changes the new government brought with it was the creation of an AI action plan unit, headed up by tech entrepreneur and chair of Aria, Matt Clifford.

Clifford was tasked with delivering an AI Opportunities Action plan for the UK, identifying ways to accelerate the use of AI to improve people’s lives by making services better and developing new products.

As well as exploring how to build a UK AI sector that can scale and compete on the global stage, the government hopes to use the plan to increase the adoption of AI technology across all parts of the economy.

8. HMRC channel shift to digital ‘too aggressive’, says NAO

The NAO report, looking at HMRC’s move to digital services, found that the introduction of technology had not eased pressures on customer service phone and post enquiries. HMRC first began introducing digital services in 2015, through its Making Tax Digital programme. However, while some services are working well, and around 60% of transactions are now digital, it has not gone to plan.

“HMRC now faces a significant challenge without increasing capacity,” the report said. “Its approach to cutting services as it introduces new digital solutions has been too aggressive.

“HMRC needs to develop not only new digital services, but also its existing digital services, particularly where performance or customer satisfaction is low.”

9. Government presses pause on Single Trade Window project

Following a report by the NAO earlier in the year, which said the Single Trade Window (STW) project – which has proved more complex and challenging than initially thought – had fallen several months behind schedule, the government made the decision to pause the project in November.

The STW project aims to allow users to provide the data they need to trade and give them the ability to apply for licenses and authorisations for trusted trader schemes on the STW platform. The programme has lacked a clear delivery timetable and has also faced supplier issues. HMRC ended up in a formal dispute with its technical delivery partner, Deloitte, less than a year into the programme, and although the dispute has been resolved, it led to extra costs.

The pause means the roll-out is unlikely to commence until after the end of the 2025/26 financial year.

10. HMRC legacy UK customs system to be switched off for good

June brought the end of an era for the Customs Handling of Import and Export Freight (Chief) system, which had been a trusty stalwart in government for more than 30 years. On 4 June, the system took its last breath and was officially turned off, years after it was originally planned.

Chief was due to be replaced by the Customs Declaration Service (CDS) in 2020, but instead has been running in parallel with the new system for years, as CDS was not ready to handle the increased volume of declarations that came with the UK leaving the European Union.