01 October 2025

The department has transitioned entirely away from on-premise IT systems, adopting a cloud-only model as part of a broader effort to modernise government digital services and improve efficiency across public spending and tax policies.

According to the State of Digital Government Review, approximately 60% of public sector IT systems now operate within the cloud, marking a steady shift towards cloud-based service delivery. HM Treasury’s move to eliminate on-premise infrastructure entirely exemplifies this trend, with the department now relying exclusively on cloud solutions.

Data obtained through the Freedom of Information Act and analysed by the Parliament Street Think Tank reveals departmental IT spending from August 2022 to July 2025. During this period, annual expenditure on cloud services was £21.4 million in 2022–2023, rising slightly to £21.9 million in 2023–2024, before decreasing to £20.3 million in 2024–2025. Despite the slight decrease in recent years, the overall investment has remained consistent, with no budget allocated for on-premise infrastructure, emphasising a complete shift to cloud-based systems.

This move coincides with HM Treasury’s recent initiation of a procurement process for a cross-government data platform aimed at boosting transparency and performance monitoring across Whitehall. Part of the Shared Services for Government (SSfG) program, this platform will facilitate real-time data extraction, harmonisation, and analysis of financial and operational data across departments. The initiative aims to foster a more responsive, data-enabled government capable of better serving citizens.

Rick Boyd, Chief Technology Officer at AND Digital, commented on the development, highlighting that HM Treasury’s cloud-only approach reflects a broader trend across both public and private sectors. He emphasised that cloud platforms offer government agencies the flexibility to respond rapidly to changing demands, scale services effortlessly, and enhance security — especially important as technology continues to evolve swiftly. Boyd underscored that technology alone isn’t sufficient; fostering a culture of innovation and adaptability is crucial. He pointed out that viewing cloud as merely an IT issue leaves organisations vulnerable. Instead, combining cloud adoption with a progressive culture is essential to safeguarding services and maintaining public trust, especially amid the rise of AI and other advanced technologies.

Boyd also noted that cloud computing acts as a vital enabler of innovation, opening pathways to advanced capabilities such as artificial intelligence, data-driven decision-making, and new digital service offerings. Modernising around the cloud has become a necessary step for organisations aiming to operate more securely, adapt quickly, and deliver greater value to the public.