John Zimmerer, Vice President at Smart Communications, discusses the Labour Government’s commitment to the public sector, its implications for the NHS, and why digital reform requires more than just ambition.
With NHS being one of the primary beneficiaries in last year’s Autumn Budget, it’s not entirely surprising that there was little mention of it in this year’s Spring speech.
The newly created £3.25 billion ‘Transformation Fund’, aims to modernise frontline delivery and accelerate the adoption of artificial intelligence (AI), and digital technology across government services.
The main objective? Drive efficiency, eliminate bureaucracy, and release more long-term savings for taxpayers. Now, while it makes sense on paper, in practice this is flawed.
Amidst the sweeping vision of a leaner, tech-enabled public sector, one question remains unanswered – where does the NHS fit in?
NHS is stuck in a reform vacuum
Tough decisions had to be made. NHS England, arguably one of the world’s biggest quangos, will be absorbed back into the Department of Health and Social Care, a move designed to reduce duplication, improve coordination, and ensure funding directly supports patient-facing services.
This is significant news, particularly for those in the lower to middle management layer, who may not be eager to take on additional work.
John Zimmerer
However, while the message focused on reducing waste and enhancing productivity, there was no explicit mention of new NHS-specific funding under the Transformation Fund.
In fact, while the NHS was promised over £2 billion for digitising its outdated systems, the Spring Statement reframed the focus around broader public sector modernisation, with examples ranging from probation services to children’s social care.
So, the question isn’t just what the Fund might mean for the NHS, but whether it means anything at all.
Without addressing the root cause first, digital reform is a ‘no-go’
We know there’s a strong history of battles between the NHS and outdated, fragmented and manual systems hindering patient care.
Issues such as old administrative processes, reliance on paper-based records, and disparate IT systems across trusts have contributed to delays and errors.
For example, 55 per cent of social care providers are still working with paper-based records, and only 20 per cent of NHS organisations are classified as “digitally mature,” highlighting the need for funding.
Pumping money into new technologies isn’t always the answer.
To drive long-term transformation, future investments must take into account and prioritise integration, interoperability, and communication. It also means avoiding “AI for AI’s sake.”
Tools must be embedded within broader operational strategies, not rolled out in isolation, only to become expensive, underused distractions.
Risks & challenges ahead
The pandemic was a good example of the dangers of rushing digitalisation.
New tools were launched without consideration for training or integration with existing tech stacks. If NHS reform is to deliver, several risks must be managed upfront:
Integration of systems – the NHS consists of numerous trusts and departments, many of which rely on different legacy systems.
Ensuring seamless interoperability between these systems is a complex and resource-intensive process.
A well-planned approach is essential to prevent fragmented digital adoption that could lead to further inefficiencies.
Staff training and adoption – new technologies can only be effective if healthcare professionals are equipped with the knowledge and confidence to use them.
Comprehensive training programmes must be implemented to prevent underutilisation or misuse of these tools, ensuring that they enhance rather than hinder day-to-day operations.
Patient accessibility – approximately 25 per cent of the UK population struggles with online services due to digital literacy barriers.
However, generational preferences also play a key role in determining how patients interact with digital services. 88 per cent of millennials value mobile/web-friendly experiences when engaging with healthcare services.
Future digital initiatives must be designed inclusively, ensuring that all patients, regardless of their technological proficiency, can benefit from improvements.
Without accessibility-focused planning, digital solutions risk widening healthcare inequalities rather than addressing them.
Security – as the NHS embraces digital transformation, ensuring the security of sensitive patient data and critical systems becomes crucial.
In fact, 94 per cent of consumers state that the most important factor when sharing personal information – such as on digital forms – is security.
By proactively addressing security challenges, the NHS can build a digital future that is both innovative and resilient.
Where does the NHS go from here?
The £3.25bn Transformation Fund signals a clear and strong intent from the current UK Government to deliver a more efficient public sector.
However, while it’s good to see Chancellor Reeves addressing long-term core issues, it must be ensured that all NHS organisations use data and systems that help them to drive productivity, day in and day out.
The NHS doesn’t just need tech. It needs the right tech embedded in the right processes, with the right people empowered to make it work.
If the government truly wants to modernise public services for working people, the NHS cannot be left navigating reform without resources or direction.
