National Digital Exchange to overhaul public sector procurement of digital tools

A first-of-its-kind digital marketplace is being built to help shake up how the UK public sector buys technology – hoping to unlock £1.2bn in annual savings from a £26bn annual spend. The National Digital Exchange (NDX) aims to give the UK public sector faster access to better deals, while boosting small business involvement by 40% within three years.

In a major shift, the platform hopes to allow teams across the public sector to access pre-approved tech deals at nationally negotiated prices, with an AI-powered engine that matches them with suppliers based on what they actually need - all in a matter of hours, not months.

It follows the State of Digital Government report which warned that 320 local councils and 209 NHS secondary care organisations go it alone when negotiating tech contracts, despite widely using similar tools – missing out on essential bargaining power. Only 28% of public sector leaders said their organisations were able to track and make sure that their tech suppliers were delivering proper value for their services.

Users will be able to rate and review what they’ve bought, lifting the lid on which tools have delivered, and where promises haven’t matched performance – creating a platform comparable to an app store for the technology that underpins the British state and essential public services.

Minister for AI and Digital Government, Feryal Clark said, “We’ve all heard the stories - months of red tape, tech that doesn’t deliver, and money wasted. That’s not good enough for the people we serve.

“The National Digital Exchange aims to change that. It will make it faster, fairer, and focused on what works - with real reviews, upfront pricing and smart AI to match buyers with the right suppliers in hours.

“It’s a clear example of our Plan for Change in action: cutting waste, boosting innovation, and backing British tech to deliver better public services.

“The platform, which will be created under the revised Procurement Regulations to help shape a smarter, more open future for digital procurement, and is being developed alongside a ‘digital playbook’ to guide officials responsible for buying technology towards best practice – making sure the long-term impacts of their decisions, and the social value of contracts are considered.

The news follows the government announcing plans to test new ways of funding AI and tech projects, aiming to bring a start-up mindset to testing the application and use of AI experiments on small budgets, and then building on proof of success. DSIT is also working closely with organisations like techUK helping to ensure the platform reflects the needs of both buyers and suppliers.