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Home Public sector

Analyst sounds general election IT spending warning

"Uncertainty is a growth suppressant,” TechMarketView's Chief Analyst, Georgina O'Toole says

Oxygen staff by Oxygen staff
23 May 2024
in Public sector
Houses of Parliament - Pixabay

Image by Sarah Larkin from Pixabay

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Public sector tech suppliers should brace for a “tough ride” in the period either side of the general election, an analyst has warned.

The UK public sector tech market will slow over the next six weeks following Rishi Sunak’s unexpected decision to take the country to the polls on 4 July, according to TechMarketView.

“Uncertainty is a growth suppressant,” TechMarketView’s Chief Analyst, Georgina O’Toole wrote.

“Now, the date of the General Election is a certainty. But who will be in power is not,” she added.

“In Whitehall, the ‘pre-election period’ will arrive sooner than expected. It will slow the UK public sector tech market down over that period and post-election it will take time for any new policies to be implemented and new procurement activity to pick up.

“Suppliers to the public sector (central government, defence, and health in particular) are in for a tough ride the next few months. We are unlikely to see much of a pickup until Q4.”

Uncertainty over the identity of the next government is also likely to see a slowdown in private sector decision making, O’Toole counselled.

“Recent positive news on inflation and on interest rates had the potential to give organisations the confidence to start making some bigger investments (although wider global turbulence remains); however, the election brings new uncertainty,” she wrote.

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