• AI-driven platform matches public sector buyers with suppliers in hours.
• £1.2 billion in savings projected annually from streamlined procurement.
• 40% boost in small business contracts targeted within three years.

The Department for Science, Innovation and Technology (DSIT) has revealed its plans for a National Digital Exchange, a digital service that is set to make it much easier for the public sector to get new technology. Called a new kind of service, it is designed to let you easily buy tech at great deals and at a low price with nationwide agreements.

The initiative responds to longstanding issues highlighted in a recent Public Accounts Committee report, which criticized the government’s failure to address systemic inefficiencies in digital procurement. Now, the UK government spends £26 billion on technology per year, yet the independent contract negotiations from over 200 secondary-care NHS bodies and 320 local council’s cause’s inconsistency and wastes chances to save money. Around 28% of those leading in the public sector state that they can track supplier performance well.

Currently, the public sector spends £26 billion annually on technology, yet fragmented purchasing practices such as 209 NHS secondary-care organizations and 320 local councils negotiating contracts independently result in missed opportunities for savings and inconsistent value delivery. Only 28% of public sector leaders report effectively tracking supplier performance.

The government has introduced the National Digital Exchange, built according to new procurement laws, which uses artificial intelligence to help public teams find suppliers in a very short period, instead of months.

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Feryal Clark, Minister for AI and Digital Government, emphasized the urgency of reform, “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.”

A complementary “digital playbook” will guide officials toward best practices, emphasizing long-term impacts and the social value of contracts. This initiative aligns with the State of Digital Government Review’s call for coordinated procurement to enhance bargaining power and ensure value for money.