How the UK Government is Streamlining Agile Digital Projects: A Smarter Approach to IT Delivery

Digital Team
Jul 22
4 min read

UK Government's Strategy for Streamlining Agile Digital Projects: Enhancing IT Delivery Efficiency

The UK Government has updated its approach to planning and approving digital and IT projects. By embracing agile methods, it’s creating faster, more cost-effective systems while reducing bureaucracy. This article explores what these updates mean, how they work, and why they matter—especially for project leaders and public sector organisations.

Why Agile Now?

In a digital age where speed, flexibility, and user needs are critical, the UK Government has recognised that traditional project planning methods no longer work for every situation. Long business cases and rigid approval processes often slow things down.

That’s why HM Treasury and the Central Digital and Data Office (CDDO) have worked together to update the guidance on business cases for agile projects. The goal is simple: support innovation while keeping strong financial controls in place.

1. Moving Away from the Waterfall Approach

Agile methods work in short cycles, allowing teams to build, test, and improve digital services continuously. Unlike the traditional “waterfall” approach—which requires detailed planning upfront—agile adapts as the project progresses.

Key Benefits of Agile:

Faster delivery: Working in short phases allows services to reach users more quickly.
User-focused design: Regular feedback ensures systems meet real needs.
Lower risk: Small, frequent releases make it easier to spot and fix issues.
Greater flexibility: Projects can change direction based on what works.
Cost control: Incremental delivery reduces waste and increases value for money.

2. A Clearer Path for Approvals

The revised guidance introduces a streamlined approval process tailored for agile projects. Instead of forcing every project through the same rigid business case process, it adjusts requirements based on the project’s size, risk, and stage.

Discovery and Alpha Phases

For early-stage research—known as Discovery and Alpha—departments can now spend up to £750,000 from their existing budgets without needing full Treasury approval. This spending is subject only to Cabinet Office digital controls.

This change empowers teams to explore user needs, test ideas, and decide whether full development is worthwhile—all without waiting months for approvals.

How it Works:

Discovery phase (about 8 weeks): Identify problems and user needs.
Alpha phase (about 8 weeks): Build prototypes and test solutions.
Approval to continue: Apply for Beta funding only if Alpha shows clear potential.

3. Lighter Business Cases That Still Keep Control

Traditionally, projects needed three stages of approval: the Strategic Outline Case (SOC), Outline Business Case (OBC), and Full Business Case (FBC). The updated guidance simplifies this by promoting the use of Programme Business Cases (PBCs).

Key Features of PBCs:

Less paperwork: Focus on outcomes and user needs, not detailed IT specs.
Ongoing reviews: Use burn charts, product backlogs, and demos instead of long documents.
Scalable: Suitable for both small projects and large programmes.

For smaller projects (below £10 million and low risk), no separate OBC is needed. These can be managed directly through the PBC.

4. Tailored Guidance for Large and Small Projects

The guidance breaks down the approval process based on project cost and risk:

Projects Over £10 Million:

Require Treasury approval.
Should still use a PBC instead of the full traditional business case model.
Must include regular reviews and milestones.
Emphasis is on working products, not just documents.

Projects Under £10 Million:

If low-risk, these do not need full Treasury review.
Can be approved as part of the programme.
Must still show value for money and follow agile principles.

In large programmes that include many small projects, the total cost might exceed £10 million. In that case, a single PBC covering all projects is recommended. This provides clarity without unnecessary duplication.

5. Agile Approval in Action: A Walkthrough

Here’s how the approval process fits with typical agile stages:

Before Discovery:

Apply to Cabinet Office for permission to begin early agile work.

During Discovery:

Notify HM Treasury about planned agile activity.
Plan necessary reviews.

During Alpha:

Begin developing and testing working solutions.
Submit the business case before Alpha ends.
Apply for Beta funding approval.

Beta and Live Phases:

Digital services are assessed before launch.
Reviews are based on real progress—like demos and charts—not long reports.
Treasury may approve funding in stages based on performance.

This process allows agile teams to keep momentum while still meeting oversight requirements.

6. Improving Outcomes While Maintaining Control

The goal of the new guidance isn’t just speed. It’s about better outcomes. By focusing on real-world testing, user needs, and flexible planning, agile digital projects can:

Deliver more relevant public services.
Save taxpayer money.
Avoid common project failures caused by over-planning and under-testing.

And by replacing rigid templates with programme-level oversight and working demonstrations, departments retain the transparency and control they need—without the red tape.

Agile is the Future of Public Sector Delivery

The UK Government’s updated guidance marks a major step forward in how it delivers digital services. By supporting agile development with flexible business case rules, departments can build smarter, faster, and more cost-effective systems.

This shift not only encourages innovation but also ensures that public money is spent wisely. Whether you’re leading a major programme or managing a small project, these changes provide the tools you need to succeed in a fast-moving digital world.

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