The UK government’s push for data-driven public services is clear, but are public and social sector organisations equipped to meet these ambitious goals? While cloud computing and automation are advancing, many technologies like AI, machine learning, and big data are still in the early stages of adoption.
With barriers such as cost, data challenges, and a lack of expertise hindering progress, organisations within the sector still face significant hurdles in fully embracing digital transformation. Is the sector ready to overcome these obstacles and unlock the full potential of innovation?
Can the public and social sector deliver on the UK's aspirations for innovation?
Public sector in focus
Fostering the workforce of the future
The public and social sector is grappling with a perfect storm of economic pressures, workforce shortages, and rising demand for services. As a result, many are feeling the weight of uncertainty.
The future of the public and social sector hinges on its ability to foster a resilient, adaptable workforce, supported by strong workplace culture and evolving skills. Yet, half of professionals lack confidence in their organisation's ability to address these critical areas.
As hybrid working becomes the norm and upskilling efforts rise, attracting and retaining talent will require a focus on career progression, employee wellbeing, and organisational culture. Will the sector be able to bridge the gap between current challenges and the workforce it needs for tomorrow?
Charting the road ahead.
Recognising the need for change, senior decision-makers are already shifting their focus.
Right now, the key focus is on tackling immediate challenges, with employee wellbeing and development a top priority.
Organisations in the sector are having to abandon long-term plans in favour of addressing immediate concerns like budget cuts, technology gaps, technology implementation, and enhancing the employee experience.
A new vision for the future?
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Peter Cudlip
Contact
Global Head of Public and Social Sector
Forvis Mazars in the UK
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As expert advisers with strong links across the public and social sector, our team draws on its market knowledge and industry experience to publish research and observations on new developments and regulations.
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Overall sentiment of how public and social sector professionals describe the prevailing culture within their organisation
communications skills
43%
digital skills
46%
project management skills
47%
analytical/data skills
51%
leadership skills
58%
Top five most desirable skills for public sector organisations
“The levels of compliance and regulation are ever increasing, creating a massive impact on resources. The levels of dissatisfaction amongst customers are following a similar trajectory.”
Social housing respondent
Current priorities in 2025
Employee wellbeing and development
Driving innovation and digital transformation
Securing funding/seeking new funding or income streams
Improving service user or citizen experience
Supporting local communities
Greater knowledge sharing and collaboration
64% positive
15% neutral
27% negative
38%
38%
44%
49%
51%
60%
Top barriers preventing the sector from exploring AI
Cost implementation
Data challenges
Ensuring trustworthy and ethical development or use
Lack of knowledge or experience
Lack of well-developed AI strategy
50%
52%
53%
54%
56%
“Schools are being asked to take on more and more responsibilities due to the lack of funding in social care e.g. mental health support, counselling, all things safeguarding and even parenting advice. The list is endless.”
Education respondent
“Challenging times ahead for the industry due to the global financial and political situation, government policies and environmental regulations. This makes the work we do more important in terms of supporting the industry but against a backdrop of a tighter financial situation.”
Central government respondent
“Seemingly endless restructurings and financial pressures leading to a sense of paralysis and unwillingness to take on leadership responsibilities and make decisions (including around funding and new projects).”
Charities respondent
51%
Top priorities in 2024/25
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