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Home Public sector

Public sector tech one-stop-shop ‘could save £1.2bn annually’

The National Digital Exchange will grant access to tech deals at nationally negotiated prices

Oxygen staff by Oxygen staff
9 June 2025
in Public sector, News
Bytes Technology Group and Softcat dominate £3.7bn public sector VAR market

Image by Piero Di Maria from Pixabay

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A “one-stop-shop” for public sector tech could save taxpayers £1.2bn and change how public servants buy digital tools.

That’s the blurb for the ‘National Digital Exchange’, a digital marketplace designed to modernise how the public sector invests £26bn a year in tech.

Currently in early development, it forms part of the government’s wider Plan for Change.

The recent State of Digital Government report warned that 209 NHS secondary care organisations and 320 local councils are lone wolves when it comes to negotiating tech contracts, despite widely using similar tools – “missing out on essential bargaining power”.

In response, the National Digital Exchange will aim to save the taxpayer £1.2bn annually by handing the public sector access to pre-approved tech deals at nationally negotiated prices.

It is also designed to open the market to more UK tech firms – it’s target is to boost small business involvement in government contracts by 40% within three years.

Users will be able to rate and review what they’ve bought, meaning it will be “comparable to an app store for the technology that underpins the British state and essential public services”.

“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,” stated Feryal Clark, Minister for AI and Digital Government.

“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.”

Tags: featuredNational Digital Exchange
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