Five years of digital change: What local tech spending tells us about the future of council innovation
Stotles has analysed over 5,700 published contracts awarded by local authorities since 2020. This amounts to more than £30.5 billion in public sector investment across IT services and software.
As local authorities across the UK prepare for a new wave of digital transformation, the past five years of procurement data reveal a powerful story. Councils are investing billions into the tools and services that power change.
Stotles’ findings reveal where the money is going and what they tell us about the direction of digital transformation in local government.
Want to learn more about engaging local authorities and winning smarter in the public sector? Book a strategy call with Stotles’ advisory team.
The big picture: Where local authorities are investing
Local government leaders are under pressure due to shrinking budgets, rising expectations, and more complex service demands.
While there are challenges, procurement data has provided insights into how they respond by investing in digital solutions that can scale services, streamline operations, and deliver better citizen outcomes.
Breaking technology into two broad categories and analysing contract awards data for the past five years, Stotles found:
£14.7 billion across 1,888 projects were linked with IT services (including consulting, software development, and support).
£15.8 billion across 3,873 projects were linked with software packages and information systems.
These numbers demonstrate a strong and steady commitment to digital innovation, even during periods of uncertainty.
Who’s leading the charge?
Looking at individual councils, a few stand out for their consistent, strategic investment in technology:
The City of London Corporation leads in IT services and software investment, with a combined project value of over £200 million across both categories.
Bristol City Council and Leeds City Council have each invested tens of millions into digital tools to support everything from citizen engagement to enterprise back-office systems.
These councils aren’t just procuring tech. They’re actively reshaping how local government operates.
The suppliers powering innovation
Digital change doesn’t happen in isolation. Local authorities are building partnerships with private sector experts to deliver results.
Standout suppliers include:
Civica UK Ltd and Softcat PLC appear across both major spending categories.
Phoenix Software and IDOX Software have won central cloud and enterprise software delivery contracts.
However, there is also an opportunity for SMEs, which have secured only 23% of contracts by volume over these five years. That leaves a significant gap for more agile, niche providers to step in and help councils innovate more quickly. Additionally, smaller suppliers can explore strategic partnerships with larger enterprises seeking to fulfil more niche requests.
What’s next: Preparing for a year of new opportunities
There are several major contracts set to expire in 2025. These include payment systems, education management, document handling, and leisure services. Each one is a fresh chance to reimagine how those services are delivered:
Wolverhampton is rethinking its document management platform.
Manchester is due to refresh its city-wide education system.
Harrogate is reviewing its leisure management software.
These aren’t just software upgrades. They’re pivotal moments for transformation.
Turning insight into action
Councils are committed to long-term digital transformation, and suppliers must establish relevant connections, communicate value clearly, and be perceived as viable suppliers for award projects.
Stotles helps suppliers translate this messy information into structured strategies, target high-value opportunities, and accelerate innovation in local government.
Technology is shaping the future of local services.
Speak with Stotles to learn where your company's next opportunity lies.
