HM Treasury has invested more than £63.6 million on cloud services over the past three years, with the department moving to a model of 100% reliance on cloud and zero on-premise IT infrastructure as part of a broader digital transformation push across public spending and tax policy.
The State of Digital Government Review shows that around 60% of public sector IT systems now operate in the cloud, reflecting a steady shift in how departments deliver services. Against this backdrop, HM Treasury’s move to a fully cloud-only model demonstrates how some departments are now taking this move to its fullest expression.
The data was retrieved under the Freedom of Information Act (FOI) and analysed by the Parliament Street Think Tank, observing departmental IT spend and infrastructure allocation between August 2022 and July 2025.
According to the figures, the annual expenditure on cloud services was £21.4m in 2022–2023, £21.9m in 2023–2024, and £20.3m in 2024–2025. While spend has remained broadly consistent, the latest figures indicate a slight decrease of around 7% year-on-year.
Over this period, HM Treasury confirmed that no budget was allocated to on-premise IT infrastructure, with all resources directed to cloud services.
The news follows HM Treasury’s recent launch of a procurement process for a cross-government data platform, designed to enhance transparency, performance monitoring, and collaboration across Whitehall. This initiative, part of the Shared Services for Government (SSfG) programme, aims to enable near real-time extraction, harmonisation, and analysis of finance and performance data across departments, building the foundations for a more responsive, data-enabled government.
Rick Boyd, Chief Technology Officer at AND Digitial, said: “HM Treasury’s commitment to a cloud-only model reflects the wider shift we’re seeing across both the public and private sectors, with the majority of systems now operating in the cloud. Cloud platforms give government departments the flexibility to respond quickly to new demands, scale services seamlessly, improve reliability, and bring significant security advantages at a time when the tech landscape is evolving rapidly. These safeguards are vital in protecting essential services from disruption and maintaining public trust.”
“But technology alone isn’t enough. Fostering a culture of adaptability and innovation has to be part of the journey. Treating cloud as just an IT issue will leave any organisation exposed. In a world of AI-driven change and escalating risks, cloud adoption combined with the right culture is the best way to protect essential services and the citizens who rely on them.”
“What makes cloud especially powerful is its role as an enabler of innovation, opening the door to advanced capabilities like AI, data-driven decision-making, and new digital services. Modernising around cloud is becoming a prerequisite for success, positioning organisations to operate more securely, adapt quickly, and deliver greater value to the people they serve.”
