The UK government is developing a new digital marketplace to transform how the government and public sector organisations buy technology, expecting to save taxpayers up to £1.2 billion annually
The platform, known as the National Digital Exchange (NDX), will streamline the technology procurement process across hospitals, schools, local councils, and central government departments.
Modernising digital services
Each year, the UK public sector spends approximately £26 billion on technology. However, a recent report found that hundreds of NHS and local government bodies often negotiate tech contracts independently, even when purchasing the same or similar tools. This fragmented approach has led to missed savings and inefficiencies.
The new digital marketplace will centralise and simplify these purchases by offering access to pre-approved technology solutions at nationally negotiated prices. An integrated AI-powered engine will help match buyers with the right suppliers based on their specific needs, cutting procurement times from months to hours.
One of the most significant innovations NDX will bring is the ability for public sector users to rate and review the technology products and services they buy. This move mirrors consumer-friendly platforms, such as app stores and online retailers, empowering public servants to make better-informed decisions and avoid costly mistakes.
The introduction of public reviews will add transparency to supplier performance, helping teams understand which tools deliver value and which fall short. This peer-driven feedback loop is expected to encourage higher standards among vendors and foster greater accountability.
UK small business suppliers
The NDX is also designed to level the playing field for smaller UK tech firms. The platform aims to increase small business involvement in government contracts by 40% over the next three years. By reducing the complexity and cost of entering the public sector market, the government aims to promote greater innovation and competition.
As part of the development process, the government is also creating a “digital playbook” to support public officials in making informed procurement choices. This guide will help ensure that purchasing decisions consider not only short-term costs but also long-term impacts and the wider social value of contracts.
Modern, flexible procurement regulations
The NDX will be built under revised Procurement Regulations that support a more open and data-driven approach to public sector buying. The platform aligns with the government’s push to modernise digital infrastructure and test more flexible, start-up-style funding models for AI and technology projects.
Working in collaboration with industry bodies like TechUK, the government is gathering feedback from both buyers and suppliers to ensure the new system meets real-world needs. With growing pressure to deliver better services and value for money, the NDX is seen as a timely solution to longstanding challenges in public sector procurement.
The platform’s unveiling comes just ahead of London Tech Week, where innovation in public services will be a central theme. With billions at stake and public trust on the line, the National Digital Exchange could mark a significant step forward in how the British state harnesses technology to serve its citizens more effectively.
