Government to create online platform for public sector tech buyers

The Department for Science, Innovation and Technology (DSIT) has announced that the government is building a digital platform for public sector technology buying. Dubbed the National Digital Exchange, the platform will give public sector organisations access to pre-approved technology deals at nationally negotiated prices.

It will also allow public sector technology buyers to rate and review products, which others can view ahead of buying their own, and will include an artificial intelligence (AI)-powered engine, matching buyers with suppliers based on what they need.

The plans for the platform comes after the State of digital government review, published in January 2025, portrayed the highly fragmented nature of public sector digital services.

Often, particularly in the NHS and local authorities, organisations will be buying products on their own and paying a premium when others are already using similar tools, thereby missing out on the bargaining chip of collective buying.

Commenting on the announcement, minister for AI and digital government Feryal Clark said: “We’ve all heard the stories – months of red tape, tech that doesn’t deliver and money wasted. That’s not good enough for the people we serve.

“The National Digital Exchange aims to change that. It will make it faster, fairer and focused on what works – with real reviews, upfront pricing and smart AI to match buyers with the right suppliers in hours. It’s a clear example of our Plan for Change in action: cutting waste, boosting innovation and backing British tech to deliver better public services.”

The platform also aims to open up a public sector technology market where systems integrators have become the dominant service providers, acting as resellers for major platforms, to ensure more suppliers have a fair chance.

The government wants to open the market to more UK tech firms, setting a target to boost small business involvement in government contracts by 40% within three years. DSIT claims the platform will unlock £1.2bn a year in savings and modernise how public sector spends its £36m a year on technology.

The National Digital Exchange, which DSIT compares to an app store for technology, will be created under the revised procurement regulations, with the government also developing a digital playbook to guide public sector buyers towards best practice.

The news comes as a Public Accounts Committee (PAC) report published on 6 June criticised government for failing to grasp the scale of reform needed to get to grips with digital procurement. The PAC report, which called on government to deliver urgent reforms to digital procurement, follows on from a hearing on the subject, which took place in March 2025.

During the hearing, which in turn followed a National Audit Office (NAO) report calling for the government to have a more strategic approach to procurement, government chief technology officer David Knott revealed that the government would develop a “clear digital sourcing strategy” over the summer, giving departments clear guidance on when to go to market and when to focus on in-house builds.