Chancellor Rachel Reeves’ Autumn Budget 2024 has cast a strong spotlight on digital transformation as a cornerstone for national growth and public service efficiency. The budget’s provisions are far-reaching, aiming to modernise healthcare, local authority operations, and support SMEs through enhanced connectivity and advanced technology. Here’s a look at how the Budget aims to leverage digital advancements across these key areas.
Digital Health Transformation Using Tech to Drive Efficiency in Healthcare
The Autumn Budget 2024 sets a clear directive towards digitalising NHS operations to reduce pressure on hospital facilities by enhancing community and telehealth services. The NHS faces increasing strain as hospital admissions return to pre-pandemic levels, with around 16.4 million admissions recorded in England in 2022/23, according to NHS England. Further, research by The Health Foundation indicates that the average hospital stay increased from 7.3 days in 2019 to 8.3 days in 2022, highlighting the growing demand for beds.
A promising solution is the adoption of telehealth services, which can facilitate patient care in the community, significantly cutting down on hospital admissions while improving patient outcomes. The Department of Health and Social Care estimates that an NHS bed costs between GBP 345 per day in a standard ward and up to GBP 2,349 for specialised care, the potential savings are substantial.
For instance, if telehealth services prevented even 5% of hospital admissions— that is 1 in 20 which is equivalent to 820,000 admissions per year—this could reduce bed occupancy considerably. Based on an average stay of 8.3 days at a minimum cost of GBP 345 per day, the NHS could save approximately GBP 2.3 billion annually in England alone. Not only does this represent a significant financial saving, but it also underscores the value of using technology to improve care continuity and alleviate hospital pressures.
Through funding for digital health initiatives, the government is positioned to shift the NHS from a reactive, hospital-based model to a proactive, community-based approach, enabling more sustainable healthcare delivery. This tech-driven shift offers a model that could also benefit other public sectors, delivering high-quality services and much needed efficiency while reducing costs.
Boosting Business Productivity Through Tech Transformation for Small Business
The Chancellor reiterated the importance of technology as a driver for productivity, particularly among SMEs. According to the Office of National Statistics (ONS), the UK's output per hour worked was lower than in France, Germany, and the United States, with average output per worker for the G7 nations (excluding Japan and the UK) at 16% above the UK level in 2021. Over the past two decades, the UK's productivity growth has been sluggish. Research by The Times indicates that the UK's output per worker has slowed to its lowest rate since at least 1850, with current output approximately 36% lower than it would have been if the growth rate from 1997 to 2008 had continued.
Despite advancements in technology, many businesses still rely on outdated, manual processes that hinder competitiveness and could be a factor. This productivity gap has significant implications for UK businesses, affecting their global competitiveness, wage growth, and economic health. Addressing this gap is essential to boost the UK’s economic performance.
Based on work undertaken by Intelligens Consulting’s Enterprise Practice, a medium-sized enterprise (50-250 employees) that is highly dependent on energy usage, such as those in food production, could achieve considerable savings by implementing tech enabled energy management systems. Typically, an SME could realise a 10% to 14% reduction in energy costs through the deployment of sensors and monitoring systems, resulting in annual savings of approximately GBP 1,757. This example illustrates how relatively simple tech implementations, like IoT-driven energy management, can deliver clear financial benefits for SMEs.
Further, we recently worked with a logistics company to improve order fulfilment rates. Our analysis estimated that increasing the fulfilment by 2%, the company could potentially increase revenue by approximately GBP 490,000 per year. This gain would result from reducing stockouts and ensuring that more customer orders are completed on time, a shift achievable through advanced stock management technologies that enhance visibility, reduce delays, and increase revenue without substantial capital investments.
The benefits of technology can also extend to agriculture. From precision feeding to optimised crop management and managing livestock— deploying the right technology can improve output yield and product quality while enhancing the data available to farmers for sustainable planning.
Even minor tech upgrades can bring measurable improvements across small business operations. From optimising supply chains and logistics to integrating customer analytics, technology helps SMEs unlock new growth potential, improve customer response times, and reduce costs through automation, energy management, preventative maintenance, and better data.
Funding for Local Authorities to Build a Digital Foundations to Boost Efficiency
Chancellor Rachel Reeves also announced a significant funding increase for local authorities, aimed at bolstering public services and enhancing operational efficiency. With additional grant funding of GBP 1.3 billion for essential services and GBP 600 million for social care, councils now have the resources to drive meaningful digital transformation. The Budget encourages local authorities to meet a 2% productivity and efficiency target, highlighting the role of technology in achieving these goals.
Local authorities have a tremendous opportunity to embrace digital transformation, leveraging automation and technology to increase efficiency and reduce costs in labour-intensive tasks. By deploying automation for routine, low-level tasks—such as visual inspections of potholes or monitoring dampness in social housing—authorities can free up staff time and drive productivity gains. These technologies not only streamline processes but, when integrated with back-end systems and AI, enable seamless operations, such as scheduling timely repairs or conducting preventive maintenance, which is inherently more cost-effective than reactive measures.
Additionally, digital transformation can support local authorities in achieving their climate and environmental goals advancing net-zero targets, improving waste collection efficiency, and tackling noise pollution. Digital solutions provide valuable support across departments, from environment and asset maintenance to waste management, housing, elderly care, transport, lighting, and road maintenance. These initiatives address both operational challenges and quality-of-life issues for residents.
Intelligens Consulting Public Sector Practice has helped local authorities benchmark best practices, assess digital readiness, and identify transformation opportunities to drive organisation-wide digital strategies. This focus on improving digital readiness enables councils to reduce costs, enhance productivity, deliver better public value, and better services contributing to the well-being of residents and creating a thriving environment for local businesses.
Project Gigabit and Continuing the Rollout of Rural Connectivity
In terms of digital infrastructure, the Government has reaffirmed its commitment to Project Gigabit and the Shared Rural Network, aiming to extend gigabit capable broadband to underserved areas across the UK by allocating GBP 500 million to support Project Gigabit and the Shared Rural Network and echoing its goal of full gigabit broadband coverage by 2030.
However, local authorities face a choice: they can wait for a project that, at the current rate, may not be completed until 2030 or later, or they can take proactive steps to drive connectivity sooner.
Through our work with other local authorities, Intelligens Consulting has helped drive innovative business models and has successfully secured private, multimillion-pound investments in digital infrastructure—all without the need for Subsidy Control. We enable councils to attract commercial investment directly creating a more dynamic investment environment that accelerates broadband deployment. It’s worth noting that this strategy enables local authorities to take charge of their digital future rather than waiting for Government intervention.
Embracing a Digital Future by Transforming Public Services and Economic Growth
The Autumn Budget 2024 underscores a powerful commitment to digital transformation as a foundation for national growth and improved public services. Through strategic technology investment in healthcare, local authorities, and business it is possible to foster a more resilient, tech-driven economy.
As digital transformation takes centre stage, organisations that embrace these changes can look forward to more sustainable operations, improved public value, and enhanced quality of life for residents and businesses alike.
About Intelligens Consulting
Intelligens Consulting is a telecoms, digital and technology management consultant. As a leader in digital transformation, Intelligens Consulting works with public authorities, businesses, and other organisations to harness these possibilities. By tailoring strategic advice, fostering innovation, and implementing digital solutions, we empower our clients to navigate today’s dynamic landscape, achieve real-world outcomes, and contribute to a future-ready economy. For guidance on leveraging digital technologies to achieve your organisational goals, contact us to learn more about how our expert team can support your journey.
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