Delivering a 21st Century NHS: Industry at the Heart of Reform, an overview of the 10 Year Health Plan

The Government’s Fit for the Future: The 10 Year Health Plan for England lays out the starkest challenge yet for the NHS, reform or decline.

It recognises the urgent need to redesign a system struggling under demographic pressure, rising demand, and technological stagnation. It sets out a bold ambition to move the NHS from a reactive, hospital-led service to one that is preventative, community-based, digital-first, and patient-empowered.

Crucially, it positions technology and innovation as the critical enabler of this transformation, a move techUK has long advocated for. The plan echoes techUK’s core policy priorities on digital infrastructure, procurement reform, and unlocking the power of data and emerging technologies.

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Powering Transformation: Innovation to Drive Healthcare Reform

The Plan’s innovation agenda is the most ambitious for the NHS in decades, and places the UK’s competitive edge in health data, AI, life sciences, and academic research at the centre of reform. For the first time, there is a clear articulation of the technologies that will deliver transformation: data, AI, genomics, wearables, and robotics.

This is a significant moment for the sector. techUK welcomes the strategic clarity on innovation priorities and the signal that Government is committed to moving at pace.

Key commitments include:

A new Health Data Research Service, backed by £600 million in partnership with Wellcome Trust, to harness the UK’s data assets in service of care transformation and scientific discovery.

Making the NHS the most AI-enabled health system in the world, with AI fully integrated into clinical pathways, decision support, and diagnostics, reflecting techUK’s call for AI adoption at system scale.

Wearables and remote monitoring to become standard in NHS care by 2035, with targeted provision to communities with the greatest health needs, an important step toward reducing health inequalities through digital technologies and the move to a neighbourhood model of care.

Reforming NICE’s role to include digital products and technologies and give NICE new powers to proactively identify outdated technologies. This supports a dynamic innovation pipeline and ensures NHS resources are focused on effective, modern care models.

A commitment to reserve 3% of NHS annual spend for transformation investment, something techUK has long called for. This gives NHS organisations the financial flexibility to adopt innovation in real-world settings, not just in trials or pilots.

Just as important is the move to streamline technology procurement, break down fragmentation, and allow for greater industry participation in service delivery. These reforms signal a serious intent to treat the private sector as a strategic partner in achieving health system goals, not just a supplier.

techUK stands ready to support implementation through deeper engagement between the NHS and the technology sector. This includes co-designing open procurement frameworks, accelerating interoperability standards, and ensuring a clear commercial pathway for innovation adoption.

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Productivity and a New Financial Foundation

The Plan rightly recognises that more money without reform is no longer sustainable. With the NHS already consuming 38% of day-to-day government spending, the system must deliver better outcomes for the same or fewer resources.

This shift to a value-based model marks a major departure from the historic focus on activity and inputs, and reflects key techUK positions on financial reform.

Key reforms that align with techUK's priorities include:

A targeted 2% annual productivity gain over the next 3 years, explicitly linked to service transformation and innovation adoption.

Ending the practice of deficit top-ups, restoring financial discipline and aligning funding to transformation outcomes.

A move toward long-term financial planning, with NHS organisations asked to submit five-year sustainability plans. This will give technology providers the confidence to invest and partner on multi-year transformation efforts.

Empowering NHS organisations to retain and reinvest capital receipts across financial years, unlocking new funding routes for innovation projects.

Exploring new financial mechanisms such as access to low-risk pension capital for infrastructure and digital upgrades.

A shift to longitudinal patient funding models, rewarding providers for outcomes over time rather than activity-based payment. This aligns incentives for innovation that improves patient experience, engagement, and outcomes.

Importantly, this financial overhaul makes room for the digital shift the NHS needs - care closer to home, powered by data, with fewer overheads and higher impact. Digital technology should not be viewed as an additional cost, rather a path to long-term financial resilience and improved patient experience.

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Industry Must Be Front and Centre

These reforms cannot succeed without industry at the heart of NHS strategy and delivery. The Plan recognises this, however there now has to be meaningful engagement, transparent procurement, and co-development of technology standards.

The ambition to embed AI in every clinician’s workflow, expand wearables, and digitise preventative care will require trusted, long-term partnerships with industry. techUK welcomes the Government’s intent to expand the role of life sciences and technology companies in service delivery and urges NHS leaders to create mechanisms that facilitate open, ongoing collaboration.

We also urge NHS leaders to ensure all digitisation is digitally-inclusive, especially as older people and people with disabilities (who frequently use the NHS) were identified as being at greater risk of digital exclusion in the government's Digital Inclusion Action Plan. It is imperative that everyone be able to feel the benefits a digital NHS will bring.

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Industry response

techUK’s CEO, Julian David said:

“The NHS 10-Year Plan outlines an ambitious vision to modernise and sustain one of the UK’s most valued public services. As the NHS continues to face numerous challenges, from an ageing population to workforce shortages and financial constraints, technology is a critical enabler in ensuring the NHS is fit for the future. The UK is already home to cutting-edge companies that are providing solutions to support the NHS in delivering more personalised, efficient, and resilient care.

“However, real progress requires deeper collaboration. We urge the NHS and the Department of Health and Social Care to proactively engage with the tech sector, not just as suppliers, but as early strategic partners. techUK is committed to working with our members, healthcare leaders and policymakers to build a more connected, data-driven health system that works for patients and staff alike.”

Shane Tickell, Chair of the techUK Health & Social Care Council said:

“As Kier Starmer said this morning on the launch of the NNHS Ten Year plan, “the chance to make the biggest difference to the NHS in a generation. Moving from an analogue system to a truly digitally enabled service.”

I’d like to thank industry for answering the call to contribute to the NHS Ten Year Plan, giving their ideas, concerns and knowledge freely for the benefit of the country. For me it was one of the greatest honours, privileges, and responsibilities of my life to represent industry on Group 4 Digital, Data and Technology. I hope we got everything that Industry wanted to see. We will always want to do more and see more, but with the promise of £10bn, ring fenced for digital and technology, then we have the biggest hope and opportunity to do the best we can, not just for the next ten years, but for the next generation”

Kath Dean, President, Cloud21

“The commitment to a digitally-enabled future health service is clear. What’s needed now is a focus on how we deliver the change needed, successfully and sustainably. That shift requires investment in people, processes and culture and ensure we're not just investing in tech - but in outcomes.

Emerging innovations—such as AI tools and the development of a single patient record—offer exciting opportunities. But to realise their potential, we must align technology to purpose and help NHS staff transition between traditional ways of working and a digital future. That’s how we’ll build confidence and achieve digital productivity.

The NHS has made important strides in digital investment. To continue to unlock the full value of these efforts and realise benefits, we must ensure that digital workflows are matured around the needs of clinicians, operational teams and their patients. We must connect and maximise the solutions already in place to enable more joined-up care, support out-of-hospital models, and promote prevention.

Long-term service transformation is a journey, built-on tech, used by people and beholden to processes. Bridging the gap between them, redesigning more efficient, safer processes that work for frontline teams, operational staff, and their patients, must come first.

It’s about helping people work differently in a digital environment, and focusing relentlessly on improving patient safety, experience and outcomes. It’s then that we will find the efficiencies needed, embed the highest possible safety standards, whilst improving experience and outcomes for patients and staff.”

Conclusion

The 10 Year Health Plan is the strongest policy statement yet that technology and innovation are not optional extras—but fundamental to the future of the NHS. It reflects techUK’s long-held recommendations and secures important wins on procurement reform, digital funding, and innovation strategy.

The opportunity now is to implement at pace. techUK and our members are ready to partner on this transformation and ensure the NHS is not only fit for the future—but once again a world leader in care, innovation, and equity.

Next Steps

techUK is hosting a member forum to provide a collaborative space for digital health, care, and life sciences organisations to discuss the Government’s newly announced 10 Year Plan.

We will use the insights gathered during this session to guide techUK’s engagement with the Department of Health and Social Care, NHS England, and other key stakeholders. Your feedback will also inform future activity, including policy papers, events, and working group priorities.

Health and Social Care Programme activities

techUK is helping its members navigate the complex space of digital health in the UK to ensure our NHS and social care sector is prepared for the challenges of the future. We help validate new ideas and build impactful strategies, ultimately ensuring that members are market-ready. Visit the programme page here.