Re:State calls for taskforce to modernise government IT

Re:State has called for the Government to create a Digital Modernisation Taskforce to tackle outdated IT across the public sector, warning that ageing systems are increasing the risk of service failures and cyber-attacks.

The think tank sets out a series of recommendations designed to make departments treat old technology as a financial and operational risk, rather than a back-office issue. Senior civil servants would report annually on the risks created by obsolete systems, while departments would face new Technology Impact Assessments when policy depends on digital delivery.

At the centre of the proposals is a taskforce intended to drive a more co-ordinated overhaul of government systems. Re:State also wants the Government Digital Service to adopt a venture capital-style match-funding model to help public sector bodies pay for software upgrades.

The report argues that ministers and officials have spent years failing to give enough priority to replacing core systems, despite broader ambitions for digital reform. Its analysis says 28 per cent of high-risk government IT systems currently have no funding allocated for fixes.

That gap leaves public services exposed to failures that can block access to everyday and essential services. The report highlights major disruption at Guy's and St Thomas' NHS Foundation Trust after a heatwave caused data centre failures, as well as long-running concerns over the Police National Computer, which still relies on technology dating back to its introduction in 1974.

Re:State argues that government risks layering new policy initiatives on top of weak digital foundations. Ambitions for reforms such as digital identity depend on modern, interoperable systems, and without them the state will struggle to match the standards people experience in the private sector.

Joe Hill, co-author of the report, director of strategy at Re:State and a former Treasury civil servant, linked the problem to years of underinvestment in core systems.

"Once governments led the technological revolution. They were some of the first adopters of computers at scale. But today the gap between public sector tech and private sector tech continues to grow. The public don't understand why their experience with government to book appointments and pay taxes are so much harder than when they buy anything from the private sector. They are right to have high standards, and for government to invest in IT to keep up the pace. But in Westminster the money doesn't get prioritised for tech, and so behind the scenes successive governments have neglected to fix many dangerously outdated systems, leaving a ticking time bomb for future generations to defuse," Hill said.

Funding pressure

The funding proposal is one of the report's more specific ideas. Under a match-funding model, central government would share the cost of upgrades with public bodies. Re:State argues this could help overcome the tendency for departments and agencies to defer major IT replacement when budgets are tight.

That reflects a long-standing problem in public sector technology spending, where visible frontline pressures often outweigh investment in essential systems that are harder to justify politically. Re:State says this has contributed to a build-up of technical debt across government, making older systems harder to maintain and more difficult to replace.

The report also argues that accountability needs to move higher up the chain. Requiring top officials to disclose technology risk each year would put ageing systems on the same footing as other strategic threats senior leaders are expected to manage.

Industry view

Ark Data Centres, which works with private and public sector organisations and is involved in a joint venture with the Cabinet Office through Crown Hosting Data Centres, said the findings match what it sees in practice. Old systems, it said, can reduce flexibility, raise costs and slow the adoption of newer technologies.

Huw Owen, chief executive of Ark Data Centres, said: "Re:State's report is a timely and constructive contribution to the Government's work to modernise its digital infrastructure. There is clear momentum across Whitehall to address legacy IT, and this analysis helps set out how that ambition can be delivered in a coherent, system-wide way. The recommendations reflect what we see in practice: the importance of sustained investment, clear accountability, and strong partnerships between government and industry. With the right approach, the UK has an opportunity to build a more secure, efficient and resilient digital foundation for public services-one that supports innovation and delivers better outcomes for citizens."

The report presents the issue as one of state capacity as much as technology. Its central claim is that government cannot deliver reliable digital public services, or safely build new ones, while key parts of its infrastructure remain dependent on systems left in place for decades.

Among the examples highlighted, the continued reliance of the Police National Computer on older technology stands out as a sign of how difficult major replacements can become once a system is deeply embedded. Re:State argues that these delays have made replacement efforts more complex over time, reinforcing the case for earlier intervention rather than waiting until failure becomes unavoidable.