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Productivity: Public Sector

Answer

The government is taking a range of steps to improve labour productivity in the public sector - that is, to increase public services output per hour worked. I will touch on a few of them.

Central to this is investment in artificial intelligence and technology to reduce administrative burden and free up staff time for frontline delivery.
More broadly, the government is investing in productivity-enhancing reform across public services, including up to £10 billion for NHS technology and digital transformation, £2.1 billion to modernise HM Revenue and Customs' information technology and data infrastructure, and £1.9 billion for cross-cutting digital transformation across government.

The government is also committed to improving Civil Service productivity. This includes reducing bureaucracy by adopting digital technology and AI tools, streamlining approval processes, and establishing a higher-skilled civil service with stronger accountability for performance.

Through automation of routine administrative tasks, we are freeing up civil servants to focus on high-value casework and delivering better services to the public. For example, the incubator for AI (i.AI) tool "Consult", has publicly supported 38 consultations across 10 departments, saving tens of thousands of administrative hours and millions of pounds.

The Cabinet Secretary is also leading a wide-ranging review of the permanent Civil Service to set out a vision for its future as an efficient, world class institution serving the elected government of the day. The review will report before summer 2027. Its final report will include proposals to strengthen accountability and capability across the Civil Service, with a focus on delivery, innovation and productivity, and public trust.

Secondary information

Type

Written question

Reference

HL3017

Session

2026-27

Subjects

Public sector Productivity

Link

View this Written question on www.parliament.uk