This week, the Chancellor, Rachel Reeves, delivered her second Budget Statement of this new(ish) Parliament. As ever, this is both a moment for the government to set out the state of the public finances and an opportunity to signal its priorities for spending, investment and long-term economic strategy.
Though the Budget focuses on growth, investment and fiscal repair rather than data policy, the delivery of almost every measure announced depends on how well government and industry collect, use and share data. The full budget document rarely highlights this directly, but the dependency runs throughout. There are also several data-specific inclusions (for example, public-private sector data sharing, monetising data assets, and fuel price data) that warrant closer inspection.
Government efficiency
To begin with, while most of the Budget’s focus on productivity concerns the wider economy, several measures target the efficiency of government itself. These include new departmental savings targets, reductions in back-office administrative costs, expanded fraud and error activity, and reforms to spending oversight and accountability. These initiatives all assume that departments can depend on the accuracy and consistency of the data used to track performance, direct resources and identify misuse of public money. Without it, there’s a risk that reforms will fail. The Budget also introduces a £1 billion asset efficiency target for 2030, with departments expected to generate value from their assets, including “leveraging public-sector data assets.” The Budget isn’t explicit on what this will involve, but the Modern Industrial Strategy treats data as a strategic national asset and commits to a data valuation framework by 2026.
Tax infrastructure
Secondly, the Budget advances digitalisation within the tax system through measures that are unambiguously data-intensive. VAT invoices will need to be issued electronically from April 2029, with further details promised next year. HMRC will also introduce real-time digital prompts in VAT and Corporation Tax filing software from 2027 and 2028. These measures bring more of the tax system’s information flows into digital form, and will require consistent data standards and clear, standardised governance practices if they’re to work well.
The Budget also expands HMRC’s use of third-party data, including more frequent reporting of interest income and card sales. While this may reduce administrative burden for some taxpayers, the practical outcomes will depend heavily on how well the processes are rolled out and communicated. As always, changes that widen data flows between the private sector and the state require transparency and strong governance to maintain public confidence. They also raise important questions around how accurately this data will be matched to individuals and businesses; what safeguards will be in place to prevent errors; how people will be informed about what data is being collected and how they can challenge inaccuracies; and how smaller organisations will be supported as reporting obligations evolve. Clarity on these points will matter for trust and fairness, particularly as HMRC increases its reliance on data supplied directly by banks and payment providers.
As these initiatives evolve, consistency across departments and sectors will be important to avoid uneven approaches to data collection and sharing. Some of the changes also have the potential to land inequitably, particularly for organisations with more limited digital capacity, making clarity and support for citizens and businesses essential considerations.
Infrastructure for AI and compute capacity
Another area with clear data implications is the government’s ongoing investment in AI and compute capacity. The Budget refers to AI Growth Zones and the expansion of national compute infrastructure. These initiatives are framed as industrial policy, but, of course, they will depend on the availability, quality and governance of the data used in AI systems. The Budget focuses on physical and financial infrastructure rather than the data that determines whether these technologies perform reliably and responsibly. This continues the pattern in which investment in technical capacity risks outpacing adoption and data readiness, especially in public services.
The Budget also includes a rare open data commitment - the introduction of the Department for Energy Security and Net Zero’s Fuel Finder scheme from Spring 2026. This will require retailers to provide near real-time fuel price data, enabling consumers to compare prices more easily and, it’s hoped, encouraging greater competition. The scheme’s effectiveness will depend on timely, accurate data and consistent publication.
Finally, the Budget sets out significant plans in energy and infrastructure, including work to overhaul grid connection processes and significant commitments to nuclear projects, all of which depend on detailed modelling and system-level data. While these programmes are outlined in strategic terms, the Budget does not indicate whether the underlying data or assumptions informing these decisions will be published. Greater openness about this information would help industry, local authorities, and researchers understand the practical implications and risks of these developments and support more consistent approaches across regions and sectors.
Data foundations
The 2025 Autumn Budget is not a data document, but its aims - across public service reform, tax, AI, energy and infrastructure - rest on data throughout. For the ODI, the question is not whether the government has the right goals, but whether the data infrastructure underpinning them is strong enough to support delivery. As the details unfold, the ODI will continue to examine how these commitments translate into practice and how the underlying data foundations can help to deliver innovation, accountability, and social and economic value.
