Digital transformation in local government has never been more urgent, nor more complex. At the Society for Innovation, Technology and Modernisation (Socitm), our Public Sector Digital Trends 2025 collection of research serves as a vital tool for leaders in the sector.

Our aim is to help leaders navigate the landscape by learning from best practices, leveraging insights, and applying them in their own unique contexts. The audience is vast – anyone with a stake in how digital culture, technology and data can transform public services.

A sector under pressure, but delivering change

Despite the tough economic climate, feedback from contributors to our analysis highlights that local public services are delivering an incredible amount of change, innovation, and reform.

The pace of transformation is undeniable, yet it is happening within a context of mounting challenges – demand for services is soaring, resources are constrained and technology continues to outpace adoption.

Our overriding theme for 2025, Breaking Borders, is about pushing beyond traditional constraints – cultural, administrative and structural – to harness technology and data across networks, regions, and even nations. It is about reimagining what is possible when we collaborate more effectively and work beyond traditional silos.

The purpose, above all, is to deliver the best possible services for the people and communities, where everyone benefits from the opportunities technology offers.

A reality check: the need for balance

Technology presents exciting opportunities, but enthusiasm must be tempered with realism. Public sector leaders must balance new innovations with the capacity and capability to implement them effectively. Cyber risks remain a constant challenge, as does the need for better data quality and governance.

The unpredictability of global events – the Covid-19 pandemic, economic downturns, geopolitical instability – adds another layer of complexity, often forcing public bodies to reset their digital priorities in response to external shocks.

This is why we talk about trends rather than predictions. The latter suggests certainty, while trends reflect the enduring, long-term shifts shaping our sector.

Our six-year review of past trends has reinforced this distinction – digital change is continuous and evolving and shaped by the wider societal context.

Digital, technology and data: why distinctions matter

A crucial takeaway from our analysis is the need to clearly define digital, technology and data – terms that are often conflated but have distinct roles:

Digital is about new ways of working – reshaping business processes and culture through pervasive technology and data-driven decision-making.

Technology refers to IT management and deployment – ensuring infrastructure is resilient, responsive and accessible.

Data is the raw material driving insights and better policy-making – essential for resource allocation and service improvement.

Blurring these distinctions can lead to inefficiencies. Strong IT management alone does not equate to a successful digital transformation if organisations fail to rethink service models and use data effectively.

I have a passionate dislike around terms such as ‘digital technology'. They can act as blockers and borders. They can be misleading. They relegate digital transformation to IT alone, instead of positioning it as an organisational, cultural and service redesign challenge. Leaders would not think about or talk in the same way about finance, IT or communications.

2025 priorities: the road ahead

As we look ahead, local government must focus on five key areas:

1)–Reimagining services: Innovation, AI and digital tools must be better harnessed to create services that are more efficient, inclusive and citizen-focused.

2)–Cyber security: The rise of AI, the Internet of Things, and cloud computing increases risks. Strengthening cyber defences and adopting best practices has to be a top priority.

3)–Harnessing data: Data-driven decision-making is critical. Public bodies must improve data quality and governance to realise AI's full potential.

4)–Place-based leadership: Empowering local leadership to integrate people, technology and data for better community outcomes.

5)–Digital skills and capability: Investing in digital literacy from frontline services to board-level roles to build a future-ready workforce.

The bigger picture: why this matters now

The public sector faces an unprecedented mix of economic, social and environmental pressures, alongside growing public expectations.

Limited budgets and supplier lock-in make large-scale change difficult.

However, the Covid-19 pandemic proved that public services can rapidly innovate and collaborate when needed. The challenge now is to embed this agility into everyday practice, rather than reacting only in times of crisis.

Collaboration across public bodies, breaking down organisational silos and harnessing digital tools will be essential to overcoming external constraints. This is already happening in our international networks, where ‘Connected Places' are emerging as a model for joined-up service delivery.

To truly break borders, we need bold leadership, smarter use of data and a long-term commitment to digital transformation.

If we get this right, the public sector can become more resilient, more responsive and ultimately, better equipped to serve people and places in an increasingly complex world.

David Ogden is director, engagement, at Socitm