The Spring Statement 2025 reads as a call to arms for technology and innovation in the UK. It’s not often you see a fiscal statement shine a light on digital transformation, but this one does, and I think that’s a big positive. It also marks a step forward in recognising the role that digital and data can play in delivering government’s ambitions.
But there’s still work to do to turn this vision into impact.
There are some clear positives for a business like ours. I was pleased to see the government put its money behind modernising public services through technology. The Chancellor announced the creation of a £3.25 billion Transformation Fund, set up to “seize the opportunities of digital technology and Artificial Intelligence (AI), and transform frontline delivery.”
For a digital transformation specialist like Scrumconnect, this kind of commitment from the centre sends a strong signal. It means the government is backing its own words with actual investment, creating a much-needed runway for innovation in public services. The details matter too. The Statement referenced new AI pilot projects, additional funding for court digitisation, and upgrades to probation technology to reduce the time officers spend on admin. These are specific, targeted interventions that create clear commercial opportunities for companies like ours to get involved in solving real delivery challenges, especially given our significant experience in delivering to clients in the Criminal Justice sector.
I’m especially encouraged by the direction of travel when it comes to AI. The Statement reiterates the government’s commitment to the AI Opportunities Action Plan, launched earlier this year. It’s focused on capturing the benefits of AI to turbocharge growth. The plan sets out how government will “work closely with the world’s leading AI companies, Britain’s world-leading academics, and entrepreneurs” to make this a reality. For me, this is where government gets it right by thinking systemically about partnerships, infrastructure, and capability.
It’s also a strong signal to companies like ours that investment in AI-based solutions, whether that’s using AI to improve triage in services, automate repetitive casework, or drive better insight from government-held data, will be backed by an appetite (and importantly, investment!) for adoption.
Another positive is the Statement’s focus on public sector capability. One figure stood out: by 2030, one in ten civil servants will be digital professionals. That’s a hugely welcome shift. It signals that government wants to build internal capability, not just buy it in. This is key if we’re going to create sustainable, long-term transformation. And for businesses like Scrumconnect, it means we’ll be working with confident, informed teams on the client side. That raises the possibilities and speed of what we can achieve together. It also supports better procurement conversations, better briefs, and more focus on outcomes over outputs.
The Statement also continues the drive to digitise HMRC. While this isn’t new, the continued commitment to Making Tax Digital and the roll-out of digital services to more sole traders and landlords from 2028 is welcome. According to the Statement, “MTD places UK businesses on a digital footing, prepares them for the future, [and] gives them the tools they need to succeed in an increasingly competitive landscape.” For a digital delivery firm, this is exactly the kind of ambition we want to see replicated across all departments. A digitised tax system not only improves compliance and experience, it creates demand for new software, tools, and platforms. It’s a good example of government becoming both a user and an enabler of digital innovation.
And finally, the government’s intent to make regulation simpler and more innovation-friendly is a positive development. The Regulation Action Plan aims to reduce the “administrative costs of regulation on business by 25% by the end of the Parliament.” It also includes a commitment to “tackle complexity, reduce uncertainty and challenge excessive risk aversion.” This shift in tone matters. As a company delivering technology into highly regulated sectors, we often see delivery delays because of unclear guidance, outdated compliance requirements or risk aversion from regulators. A regulatory environment that is more agile, proportionate and digitally literate would significantly improve delivery pace and reduce cost.
But there are also some key areas where ambition outpaces current readiness. This is where the role of innovation and delivery becomes even more critical.
One area that needs more attention is digital infrastructure. While the Statement speaks of physical infrastructure, from road upgrades to new transport connections, there’s very little detail on digital connectivity. We didn’t hear anything new on ultrafast broadband access, or incentives for telecoms utilities to expand their networks. For a government placing so much emphasis on digital services and transformation, this feels like a gap. It’s impossible to deliver universal digital services to the whole country if large parts of the country still struggle with basic connectivity.
Another concern is the lack of direct support for SME digital adoption. We heard a lot about government adopting tech. We heard a lot about AI and automation. But we didn’t hear very much about the millions of small businesses across the country who haven’t yet digitised their operations. How are these SME’s going to be supported to make that leap? And what government platforms might they be able to use? We know from our own work that barriers to adoption include cost, capability and confidence. A refreshed “Help to Grow: Digital” style scheme or incentive programme could have a big impact. We need to see the benefits of digital innovation reach beyond government departments and into our high streets and communities. The Statement's silence on this issue feels like a bit of an own goal.
The government’s wider ambition to be a global AI leader is clear, but the talent pipeline to deliver that vision is less so. The Statement references funding for 60,000 new skilled workers, but this is almost entirely focused on construction. There’s no clear equivalent ambition for tech skills in software engineering, data science, service design or digital delivery. For a company like ours, talent is the single biggest constraint on growth. We want to grow our team - we’ve already stated an ambition to grow Scrumconnect to 1,000 people in the short term - and to expand the impact we already make in government, but we’re competing for talent with much larger firms and a limited pool. If organisations like ours are being relied upon to make the AI Action Plan real, then there must be innovative ways to enable and fund the development of the talent who will build and scale those tools. That means apprenticeships, boot camps, training grants, and closer collaboration with industry.
The other omission in the Statement is cybersecurity. If we are serious about digitising the core systems of public services, then those systems must be safe, trusted and resilient. The Statement includes generous defence funding, and mentions innovation in defence, but cybersecurity barely gets a mention. This worries me. Every new digital channel creates new risk. Every new data-driven workflow demands strong data governance. Cyber must be built into digital delivery from day one. It’s good that the National Cyber Security Centre is active, but I would have liked to see stronger public funding and focus for cyber capability across government departments. We need to see security as an enabler of innovation, not an afterthought.
Finally, there’s a challenge around inclusivity and execution. The vision is bold. But will the benefits reach smaller companies, regional providers and startups? Or will the Transformation Fund be won mostly by large consultancies and systems integrators? Will new infrastructure plans create demand for digital skills in local economies, or only in London and the South East? Selfishly, what does this mean in terms of supporting our fabulous new Project Delivery Centre that we’ve been growing in Newcastle? The Statement talks about partnerships with places like Greater Manchester and the West Midlands, which is promising. But more detail is needed on how smaller tech firms will be supported to grow and participate.
At Scrumconnect, we believe in inclusive innovation. We work hard to create impact at pace by embedding with clients, building local talent, and focusing on real-world delivery. We’d like to see that ethos better reflected in how these funds are allocated, and how programmes are commissioned. That means simpler procurement routes, fairer commercial terms, and a genuine role for SMEs in shaping and delivering transformation.
In summary, the Spring Statement 2025 sends strong signals that technology, data and digital public services are now central to government’s delivery ambitions. The direction is right, the funding is welcome, and the tone is encouraging.
But to truly unlock that potential, the country needs stronger digital foundations, clearer support for SME innovation, more investment in digital skills, and a serious conversation about security.
With the right partnership between government and companies like ours, these ambitions can become impactful and help build a more modern, inclusive, and resilient Britain. I think the Statement is a bold and positive start towards this.
With £3.25bn committed in the 2025 Spring Statement towards digital transformation, a renewed focus on AI, and a clear ambition to build internal digital capability, this feels like a moment of real intent. Scrumconnect CEO, Praveen Karadiguddi explores what the Statement means for delivery, innovation, and the future of digital public services.
A reflection on the Spring Statement 2025 from Scrumconnect CFO, Shilpa Kaluti. It explores what the Statement got right for SMEs, including investment in infrastructure, R&D reform, and digital transformation, while also pointing out the gaps in support for tech talent, immediate reliefs, and the pace of regulatory change.
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