How the UK public sector can adapt to financial uncertainty with agility

UK public sector: Three people seated, having a meeting

Increasing fiscal constraints are making UK government spending the most uncertain it’s been in decades, according to the Institute for Government. Maintaining key public services is arguably more difficult than ever before. As public sector organisations try to pivot and reallocate resources, traditional budgeting cycles are simply no longer fit for purpose.

These organisations need real-time visibility into finances and the ability to quickly adjust spending. They need tools to deliver greater insight and adapt to changes caused by ongoing economic turbulence. This is where technology can make all the difference.

Budget blind spots and inefficient operations

Lack of visibility and inefficient processes are creating extra challenges for public sector organisations. Finance teams are often in the position of navigating disjointed legacy systems and sluggish reporting processes.

As a result, budget tracking is an onerous task, often requiring the manual consolidation of data across multiple systems. By the time spending reports are compiled and shared, the information can be outdated.

Organisations left with an inaccurate understanding of their financial position can make it nearly impossible to know what funds are available to spend across public services.

Public bodies also need to be able to quickly translate their financial decisions into action, whether that’s reallocating resources, adjusting procurement strategies, or exploring cost-saving initiatives. Legacy systems, data silos, and manual processes make it difficult to execute these operational changes.

Digital solutions for a flexible approach

Modern enterprise resource planning (ERP) processes can provide a shorter, simpler process to manage financial information. Centralising data and automating reporting can give finance leaders a complete overview of fiscal operations, allowing them to make informed decisions to keep spending on track.

Smart workflow management and process automation are also helpful tools. By connecting systems and reducing departmental silos, they can help financial data flow seamlessly across the entire organisation to inform dynamic planning at every level.

Digital workflows help departments act fast when adjusting spending strategies. Finance and frontline teams can collaborate more efficiently to adapt operations in line with available funding while mitigating disruption to vital services.

Future-proof agility through low-code

Maintaining this agility in the long term requires continuous process improvements. However, a traditional approach to updating systems means time-consuming and costly coding. With the public sector already facing stringent budgets, these improvements tend to drop down the list of priorities.

Low-code technology can help organisations overcome this hurdle by enabling non-technical users to quickly configure and reconfigure processes. As budgets and service demands fluctuate, organisations can easily adjust processes to adapt procurement rules, reallocate resources, and stay ahead of the curve.

An operating model driven by real-time insights, seamless processes, and low-code development can enable the public sector to continue providing vital services to citizens—no matter what economic climate lies ahead.

Find out how ServiceNow can help your organisation navigate financial uncertainty with digital public sector solutions.