What Mark Carney can learn from Westminster about digital government

Last year we wrote a report called A Radical How for Canada, which explores how Canada at both a provincial and federal level could change public sector culture and practice to more reliably deliver exceptional public services. We are seeing this play out in the UK, where the Government is taking a Test and Learn approach to transforming Whitehall and public service delivery.

We think the Carney administration can learn a lot from the UK and should focus on these four areas within its first 100 days in order to save money, increase efficiency and better serve Canada.

1. Major transformation programmes

In its April 2025 Liberal platform the government outlined its intention to set up an “Office of Digital Transformation at the centre of government to proactively identify, implement and scale technology solutions and eliminate duplicative and redundant red tape.” The platform cites people getting their Employment Insurance cheques faster as an example of what might be achieved. For such a change to happen, however, the government is relying on the success of huge programmes such as Benefits Delivery modernisation (BDM).

So far we have seen the Liberal government commit $4.4bn for the BDM programme (a marked increase from its original price tag of $1.75bn). Despite these repeated investments, the Auditor General and the media have expressed concerns that the BDM programme is over-budget, late, and unlikely to deliver on outcomes. These red flags should cause concern as they fit the pattern of large projects failing. The narrative that Canada’s tech strategy has failed is in the news again with confidence about the country's ability to deliver services – without relying on American vendors – diminishing.

As the government looks to spend money on BDM and other major programmes, it would do well to assess whether it is structured to support a test and learn approach. This approach is proven to reduce the cost of failure and accelerate delivery.

2. Procurement

Carney’s platform includes innovation in procurement through the new Office of Digital Transformation. This mirrors similar efforts underway to modernise defence procurement and recognises the need for Canada to diversify its markets and incentivize wealth creation at home. One of the most powerful tools which Prime Minister Carney wields to accomplish these goals is the federal wallet. However, the Canadian government has a track record of procuring digital projects in ways which are risk prone, likely to fail, and contrary to international best practices.

Canada should improve and streamline its procurement processes, with selected vendors and success metrics publicly identified. As an example, the UK’s introduction of procurement spending control is among the most successful efforts in terms of money saved, resulting in savings of £1.3bn over five years (about $2.4bn CAD). Last week the UK announced the launch of its new digital marketplace platform which promises to save £1.2bn (about $2.2bn CAD) annually while making it easier for the public sector to buy products and find local vendors. Importantly, this platform will also allow public service users to rate and review these vendors.

Despite repeated calls for increased transparency in procurement, including from the Auditor General earlier this week, Canada remains shamefully opaque. This makes accountability for vendors and bureaucrats elusive and thus underserves taxpayers.

3. Civil service capability

Carney’s platform, the Cabinet, and public communications reflect a strong enthusiasm for Artificial Intelligence (AI) and the opportunities it can bring. Without the right skills and capabilities within government to make the most of new technologies, however, it runs the risk of spending time and money on solutions that are looking for a problem to fix rather than ruthlessly prioritising investment on the biggest challenges for delivering government services.

AI offers a shiny distraction from the very real problems plaguing government programmes – chronic underinvestment, mounting tech debt and a shortage of leadership and in-house talent needed for genuine improvement. The right talent – and sufficient leadership – can assess the various data, legal and technology debt challenges that need to be addressed before AI can be employed.

The Federal government like many other governments is in a period of hiring contraction. This posture may tempt leaders not to hire digital practitioners, but the UK’s experience demonstrates how the right talent can save the government significant money. For example, the UK’s Government Digital Service cost approximately $100m CAD a year at peak to operate but it saved $7.5bn in 5 years, offering a twenty times return on investment.

The lessons from the UK are clear. Now is the right time to hire, retain, and empower digital talent that can give bold advice on how to design services, what to buy and which tools offer the most efficiencies without compromising on effectiveness. This, along with procurement changes and a relentless commitment to test-and-learn practices in major transformation programmes, will greatly help Carney and his government navigate their fiscal and administrative challenges as they undertake their first 100 days in office. Canadians deserve a government that not only works for them but also models true leadership in service of a better tomorrow.