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Report of the Digital Government Review

Options for funding government’s contribution

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We considered four ways to fund government’s contribution while remaining within the boundaries of Labour’s zero-based spending review [ ] and without looking for additional funding from outside government.

For each option we estimated quantifiable benefits due to increased digital inclusion along with the advantages and disadvantages of using as a funding source.


Quantifiable Benefits


  1. Savings from digital service delivery
Surplus of £188m by 2020
Further ongoing savings of £189m per annum
  1. Benefits from increased and higher-paid employment
£120m per annum Difficult to causally attribute to digital inclusion
  1. Benefits across the wider economy
Estimates as high as £6.6bn per annum Difficult to causally attribute to digital inclusion
  1. General savings in ICT expenditure
n/a Benefits are not due to inclusion

We recommend that option 1 is used to fund the investment and track the benefits.

The analysis shows that option 1 by itself fully funds the government’s £292m investment by year 4. Providing a surplus of £188 million by 2020 and further ongoing savings of £189 million a year thereafter. This is our recommended option. It is clear and simple.

But it is important to note that the benefits of all options do accrue to individuals, communities, businesses and society as a whole. The projected benefits show clearly that digital inclusion is worth pursuing. The benefits are spread widely across society and greatly exceed the cost of implementation.

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