The UK government has announced plans to transform and upgrade its central finance system to improve the efficiency and accuracy of data.
These upgrades aim to enhance the understanding, tracking and evaluation of spending across departments, providing Ministers with real-time performance data at both the departmental and programme levels.
Chief Secretary to the Treasury, Darren Jones, said: “The Prime Minister has been clear that the government will rewire the state, so that it better delivers on the people’s priorities.”
Currently, departments track their own spending and performance, sharing data with the Treasury through manual uploads via online spreadsheets and physical letters. While these processes have been in place for decades, the Treasury now seeks access to real-time data.
With these upgrades, HM Treasury will be able to see exactly which programmes are overspending or underspending, which projects are delivering and how departments are performing against budgets and objectives.
“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,” Jones remarked.
“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.”
This move comes as Prime Minister Keir Starmer looks to improve government efficiency. In recent months, Starmer has focused on the performance of regulators, aiming to cut those that add unnecessary compliance costs and time, such as the Payments Systems Regulator (PSR).
However, this initiative marks one of the first inward-facing actions as part of his broader mission to revitalise the UK economy through investment and innovation.
One area Starmer has highlighted for driving innovation is AI, a technology that heavily relies on data and can be used to provide real-time insights, particularly in fraud prevention – an issue the government has been urged to prioritise ahead of the Spring Statement next week.
