Five years of digital change: What local tech spending tells us about the future of council innovation
Guest blog by Dallán Ryan, Data Research and Content Manager, Stotles #LPSInnovation
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.
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.
Our Local Public Services Programme helps techUK members to navigate local government. We champion innovation that can create truly digital local public services helping to create thriving, productive and safer places for all. Visit the programme page here
Future Gazing: where next for local gov tech in 2026?
Explore what’s next for local government tech in 2026 — join the “Future Gazing” event to shape tomorrow’s public service innovations. Secure your place now and help lead the transformation.
Our members develop strong networks, build meaningful partnerships and grow their businesses as we all work together to create a thriving environment where industry, government and stakeholders come together to realise the positive outcomes tech can deliver.
Georgina is techUK’s Associate Director for Local Public Services
Georgina works with suppliers that are active or looking to break into the market as well as with local public services to create the conditions for meaningful transformation. techUK regularly bring together local public services and supplier community to horizon scan and explore how the technologies of today and tomorrow can help solve some of the most pressing problems our communities face and improve outcomes for our people and places.
Prior to techUK, Georgina worked for a public policy events company where she managed the policy briefing division and was responsible for generating new ideas for events that would add value to the public sector. Georgina worked across a number of portfolios from education, criminal justice, and health but had a particular interest in public sector transformation and technology. Georgina also led on developing relationships across central and local government.
If you’d like to learn more about techUK, or want to get involved, get in touch.
Programme Manager – Local Public Services and Nations and Regions, techUK
Luke Newcombe
Programme Manager – Local Public Services and Nations and Regions, techUK
Luke joined techUK in September 2025 as a Programme Manager for Local Public Services and Nations and Regions.
Luke works closely with members and stakeholders across industry and government at local, regional and national levels to support collaboration, drive innovation and strengthen tech-enabled public services. His work supports the development of strong local and regional tech economies by helping organisations to engage with public sector challenges, explore emerging technologies and build impactful partnerships.
Prior to joining techUK, Luke worked at Enterprise Ireland, the Irish government’s export development agency. He began by advising SMEs on export strategy to the UK and later focused on connecting Irish businesses with multinational organisations to foster strategic partnerships, drive international growth and support economic development.
Luke holds an MSc in Political Economy from the University of Amsterdam and a BA in European Studies from Trinity College Dublin.
Programme Team Assistant for Public Sector Markets, techUK
Fran Richiusa
Programme Team Assistant for Public Sector Markets, techUK
Fran serves as the Programme Team Assistant within techUK’s Public Sector Market Programmes, where she is responsible for delivering comprehensive team support, managing administrative functions, and fostering strong relationships with members.
Prior to joining techUK in May 2025, Fran built a meaningful career in the charitable and local government sectors. She worked extensively with both victims and perpetrators of crime, and notably led the coordination of Domestic Homicide Reviews across Surrey—an initiative aimed at identifying lessons and preventing future incidents of domestic abuse.
Outside of work, Fran is an avid traveller and a proud cat mum who enjoys unwinding with her feline companions.
