A new Re:State report reveals that one-quarter of UK central government IT systems are high-risk legacy platforms, costing the economy £45 billion annually in lost productivity and inefficiencies.

Key Points

• Approximately 25% of the 319 evaluated central government IT systems are currently "red-rated" due to high operational risks and outdated infrastructure.
• Research suggests that some public sector organizations, including the NHS and local police, may have legacy tech rates as high as 70%.
• Failure to modernize government IT is estimated to cost the UK £45 billion annually in unrealized savings and reduced productivity.
• The Tony Blair Institute projects that full digital modernization could unlock £200 billion in AI-related savings over the next five years.
• The report recommends creating a Digital Modernization Taskforce and implementing centralized procurement to reduce vendor lock-in and improve system visibility.

Why it Matters

Outdated IT infrastructure creates a significant fiscal and operational burden that prevents the public sector from effectively deploying modern AI solutions. Addressing these systemic inefficiencies is essential for the government to capture billions in potential savings and improve long-term service delivery.