Event round-up: Future Gazing: Where next for local gov tech in 2025

Event round-up: Future Gazing: Where next for local gov tech in 2025?

This was an opportunity to reflect and celebrate the achievements of digital local government from the past year, looking at local government tech innovations, reflecting on the digital trends from 2024 and making our high-level predictions for 2025.

A big thank you to our brilliant speakers who shared their insights and predictions with us:

• Gus Tugendhat, Founder of Tussell
• Sharna Quirke, Strategic Director for Local Government and Health, Chair techUK Local Public Sector Committee
• Amanda Whicher, UK&I Director Technology, Hays and Lead for techUK Local Public Sector Committee skills sub-group
• Owen Pritchard, Head of Cyber, Digital and Technology, the LGA

Tussell - Analysing data around local government tech spend trends

The webinar started with a presentation from Gus, analysing data around local government tech spend trends, as Tussell specialises in turning open government procurement data into actionable insights using technology for collection, aggregation, normalisation, and enhancement. Gus shared a few key insights and trends such as:

• Local government accounts for a larger share of public procurement than central government or the NHS, especially in health and social care services;
• Procurement spending on IT in local government has been relatively flat, reflecting shifts in priorities due to austerity and urgent demands like social care;
• IT spending in local government has grown modestly from £2 billion to £2.3 billion over five years, but its share of total procurement has declined. This raises concerns about whether local governments are investing enough in IT to digitally transform and sustain services;
• NHS IT procurement has grown significantly faster (15% annually) than local government IT procurement (less than 4% annually). Local government IT procurement is now substantially smaller compared to NHS and central government spending.
• IT spending varies significantly between local authorities, influenced by regional and financial circumstances (e.g., Birmingham City Council's reduction vs. City of London's increase);
• Local government increasingly engage with SMEs, with their share of IT procurement spending growing from 16% to 19%. Larger suppliers (top 10) have lost market share to SMEs and other providers, although value-added resellers remain prominent.

An important future opportunity is due to the fact that a significant value of live IT service contracts (~£2.4 billion) are set to expire over the next few years, presenting opportunities for proactive engagement by suppliers and buyers. Therefore, suppliers are encouraged to engage early in the procurement process to demonstrate value and lower costs, as well as buyers and councils are advised to collaborate, share insights, and optimise procurement strategies.

Sharna Quirke - techUK Local Public Services Committee overview and aims

The techUK Local Public Services Committee Chair, Sharna Quirke followed with an overview of the work done with the Local Public Services Committee (LPSC) and their achievements so far, supporting local government through technological innovation. The LPSC aims to be a voice for the technology industry, fostering two-way collaboration with local government and seeking to address shared challenges and break down barriers to engagement and innovation. The LPSC was structured into four working groups focusing on:

1. Innovation
2. Influence
3. Procurement
4. Skills.

These groups have produced surveys on skills and procurement, which have yielded insights into local authorities' challenges; thought leadership pieces on AI and innovation aiming to demystify emerging technologies and promote adoption, advocacy with central government to build momentum for systemic reform.

Sharna highlighted the pressing need to align local government with technological advancements. While councils have ambitions, systemic barriers-like underinvestment and fragmented conversations-hinder the realisation of technology's potential, particularly in addressing critical issues like homelessness. Sharna stressed that success depends on fostering collaboration, addressing cultural and structural barriers, and redefining how investments in technology are justified and implemented.

Her predictions for the future are looking at emerging priorities including:

• integrated platforms,
• payments technology,
• digital identity/data sharing, where the latter remains a persistent challenge, with legislative solutions likely needed to address privacy and data sharing concerns.

Learn more about our Local Public Services Committee here.

Amanda Whicher - the challenges and strategies in addressing skill shortages and talent retention within local government

Amanda Whicher, UK&I Director Technology, Hays and Lead for techUK Local Public Sector Committee skills sub-group then spoke about the challenges and strategies in addressing skill shortages and talent retention within local government and broader sectors. Reflecting on the current state of the job market, she highlight the enduring skills gap, particularly in technology roles, which has been exacerbated since COVID-19. As technology adoption accelerates, organisations face mounting challenges in attracting, retaining, and upskilling talent to meet evolving needs. A recent survey conducted by the Skills working group of the Local Public Services Committee (LPSC) which is led by Amanda, explores these issues, offering insights from both employer and employee perspectives. One notable trend is the growing emphasis on employee retention and the increasing importance of diversity, equity, and inclusion (DEI). Employees now demand more inclusive workplaces and value alignment with organisational culture. Amanda underscores that creating inclusive environments is critical for retaining staff, particularly in high-demand areas such as AI, cybersecurity, and data management.

The rise of AI also poses opportunities and challenges. While AI remains a hot topic, its adoption has been slower than expected, often hindered by outdated technology infrastructure and insufficient skills. To embrace AI, organisations need to address foundational issues such as data integrity, cybersecurity, and staff training. Amanda emphasises that AI implementation is no longer a purely technological conversation but a strategic priority requiring board-level engagement. Amanda also advocates for local governments to better communicate their value proposition to potential candidates, as public sector organisations need to effectively showcase their social impact and purpose, which are attractive to many job seekers. Improving recruitment processes, investing in employee development, and fostering a learning culture are essential steps to attract and retain talent.

We will publish insights from the skills survey shortly.

Owen Pritchard, and the Local Government Association's (LGA) mission to support councils in using digital technologies effectively for both councils and communities.

The final speaker Owen, Head of Cyber, Digital and Technology, LGA, outlined the Local Government Association's (LGA) mission to support councils in using digital technologies effectively for both councils and communities. The LGA focuses on three key areas:

1. digitally enabled councils
2. empowered residents,
3. equipped places.

Reflecting on the past, present, and future of digital transformation, Owen used "A Christmas Carol" as festive storyto emphasise challenges, progress, and potential risks.

• The "ghost of Christmas past" highlights early efforts in digitalisation, marked by austerity, large IT projects, and mixed results. Failures stemmed from rigid systems and poor alignment with user needs, but agile projects like GOV.UK signalled a positive shift. The COVID-19 pandemic accelerated digital adoption, showcasing resilience but leaving room for improvement.
• The "ghost of Christmas present" envisions a digitally empowered public sector, where data-driven insights improve decision-making and services are accessible, efficient, and personalised. Examples include virtual healthcare consultations, streamlined social work, and digitally enhanced libraries. Local governments can use technology to address challenges like social isolation, fostering community and inclusivity.
• The "ghost of Christmas future" warns of potential pitfalls, including deepened digital divides, algorithmic bias, privacy breaches, loss of human connection, and over-reliance on fragile digital infrastructures. These risks underline the need for thoughtful, equitable digital transformation.

Owen concluded with five "Christmas gifts,":

1. calling for reassessments of GDPR's impact,
2. investment in infrastructure,
3. agile decision-making,
4. lessons from past IT failures, and better integration of diverse stakeholders
5. he emphasised the urgency of learning from the past and acting wisely to shape a better digital future.

In terms of what predictions the speakers see for 2025…

• Gus focused on data-driven procurement as a critical trend. He highlighted the significant financial impact of upcoming contract renewals in local government, with approximately £700 million in contracts set to expire in 2025, half of which are IT-related. He emphasised the importance of proactively using data to optimise procurement outcomes, compete effectively, and ensure better value from budgets. He avoided speculative tech trends and instead prioritised actionable strategies.
• Sharna reiterated points from her earlier discussion, emphasising that data will remain central, with AI playing a significant role. However, she pointed out practical challenges, particularly in payments and data sharing, as well as GDPR-related issues that hinder progress. She argued that these barriers need immediate attention to enable better outcomes for local authorities, even though resolution might take longer than a year.
• Owen explored structural and philosophical challenges in digital transformation. He expressed concerns about the conflict between agile methodologies and rigid financial forecasting models required by local government. He also noted that effective AI adoption requires foundational improvements in data infrastructure ("fixing the plumbing"). While optimistic about technological potential, he emphasised that systemic complexity and unresolved challenges, such as privacy vs. productivity debates, could hinder progress.
• Amanda addressed the skills gap as a key issue for 2025. She called for technology vendors to take greater responsibility in helping local governments build the necessary skills to maximise the use of digital tools. She highlighted that investment in technology alone is insufficient without proper training and support for staff, and this imbalance needs urgent correction.

In conclusion:

To advance digital transformation in 2025, local public services must focus on proactive procurement strategies, improving foundational infrastructure, and fostering stronger partnerships with industry. Priorities include addressing data-sharing barriers, integrating AI responsibly, and upskilling staff to fully leverage technology. Open dialogue between local authorities and suppliers, alongside a collaborative approach to risk management, will be vital in driving impactful, future-facing outcomes.

You can view the full webinar recoding of our Future Gazing session below:

You can also read our Local Public Services 2024 round-up here.

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