A decisive shift to cloud-native infrastructure
In a bold move reflecting a wider digital overhaul across Whitehall, HM Treasury has fully migrated its IT infrastructure to the cloud, spending over £63.6 million on cloud services between 2022 and 2025. Gone are the days of on-premise servers for the department responsible for the nation’s spending and tax policy. This dramatic transition, revealed through a Freedom of Information request, signals the department’s confidence in cloud platforms to deliver improved flexibility, security, and scalability.
Three years of steady cloud investment
Between 2022 and 2025, the Treasury’s annual cloud expenditure held remarkably steady:
- £21.4 million for the financial year 2022–2023
- £21.9 million for 2023–2024
- £20.3 million for 2024–2025
No funds were allocated to on-site hardware during this period, underscoring a complete abandonment of legacy infrastructure. The decision aligns with findings from the State of Digital Government Review, which showed that roughly 60 percent of public sector systems now run in the cloud.
Launching a cross-government data platform
This cloud-first strategy coincides with the Treasury’s procurement of a new cross-government data platform under the Shared Services for Government programme. The platform aims to unify financial and operational data from across ministries, providing near real-time analytics to inform policy decisions and performance monitoring. By breaking down departmental silos, the data platform promises enhanced transparency and faster responsiveness to emerging challenges.
Beyond technology: the human factor
While the technical migration is largely complete, Treasury leaders acknowledge that the real test lies in embedding a culture of innovation throughout the organisation. Rick Boyd, Chief Technology Officer at AND Digital, praised the move as “a vital step for public services,” but cautioned that “success depends on coupling cloud investments with upskilling and agile mindsets.”
Recent research by Granicus UK supports this view:
- 25 percent of public sector employees cite digital literacy as a critical skills gap.
- 30 percent identify the need for ongoing training to handle emerging technologies over the next three years.
Granicus warns that without leadership commitment and comprehensive staff development, the Treasury risks under-utilising its cloud assets.
Leadership and digital expertise on the rise
Progress is visible in areas that prioritise board-level digital expertise. NHS England’s Digital Maturity Assessment shows that the proportion of boards with digital experts jumped from 45 percent to 70 percent in three years. Emily Middleton, Director-General for Government Digital Centre Design, stresses that “digital transformation must engage every level—from operational teams to directors—to drive meaningful change.”
However, procurement data from Tussell reveals a widening disparity:
- Healthcare bodies now account for 23 percent of public sector IT contracts, up from 19 percent five years ago.
- Local authorities’ share has fallen precipitously to just 1 percent.
This shift suggests that while some agencies embrace advanced cloud solutions, others struggle to secure the resources or expertise needed.
Innovation models inspired by private sector success
Beyond core government departments, other public bodies are experimenting with data-driven models to improve efficiency. The Metropolitan Police Service is rolling out “precise policing,” applying real-time analytics to deploy officers where they are most needed. Commissioner Mark Rowley emphasizes the value of “learning from agile startups” to bypass bureaucratic hurdles and accelerate technology adoption.
Similarly, the Home Office reports that services like passport renewals and Electronic Travel Authorisations run at scale comparable to leading private platforms, demonstrating that government can match commercial efficiency when it commits to digital-first design.
Unlocking the full potential of cloud and AI
Despite extensive investment in cloud infrastructure, many public servants admit that current tools are not fully exploited. Granicus research found that 58 percent of staff feel they have the right digital solutions but lack the time, skills, or support to leverage them effectively. As Ian Roberts of Granicus UK observes, “Technology alone won’t drive transformation. It’s the workforce—trained, empowered, and led by visionary managers—that turns potential into outcomes.”
A blueprint for the future of public services
HM Treasury’s journey from on-premise servers to a fully cloud-based environment offers a compelling model for other departments. By pairing substantial cloud budgets with a strong emphasis on leadership, training, and cross-organisational data sharing, the Treasury is laying the groundwork for a responsive, citizen-focused government. The ultimate measure of success will be how these investments translate into faster service delivery, more informed policy decisions, and improved outcomes for the public.