The UK Government is keen on enhancing its planning system to promote economic growth through digitalisation.
- Paper-based processes in the Land Registry hinder efficiency, necessitating digital solutions.
- TPX Impact has signed a £19m contract to improve digital operations in the planning sector.
- A slowdown in government spending has impacted TPX’s revenue and its short-term financial outlook.
- Government initiatives aim to accelerate the housing market by reforming planning procedures.
The UK Government’s focus on digitalising its planning system is a strategic move to foster economic growth. This initiative is seen as vital in transforming traditional bureaucratic procedures into more streamlined, efficient processes. Currently, the Land Registry relies heavily on paper forms, which slows down operations significantly. A digital transformation is essential to enhance efficiency and service delivery within the ministry and across the planning system.
TPX Impact, a firm specialising in digital transformation, has secured a £19 million contract with the Ministry for Housing, Communities and Local Government. The firm’s CEO, Björn Conway, emphasised that digital updates could reduce the influx of calls to the Land Registry, thereby improving organisational efficiency. This upgrade supports the government’s manifesto for growth and facilitates critical reforms within the planning sector.
Despite these advancements, TPX Impact faces challenges due to a reduction in government spending, which is its largest client base. The firm reported a 9% decline in turnover to £37.8 million for the six months ending in September. However, pre-tax losses have significantly decreased to £4.1 million. The rise in National Insurance Contributions is expected to impact the firm’s cost structure negatively, alongside the ‘Black Hole’ in government finances, causing delays in contract awards and existing project expenditures.
Nevertheless, TPX Impact has experienced an increase in new contract acquisitions, although revenue growth for the year is expected to remain flat, with Adjusted EBITDA projected between £7m and £8m. The company’s stock has also faced challenges, with shares falling by 6.9% to 37p, marking a 12.4% decline since the year’s start.
Amidst these financial dynamics, the UK Government has announced proposals to expedite the planning process, with a target of constructing 1.5 million new homes. As the government stressed, ‘sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people…nowhere is decisive reform needed more urgently than in our planning system.’
Digitalisation in government planning is crucial for boosting economic growth in the UK.
