What's Happening?
The UK government has rejected the Office for Budget Responsibility's (OBR) estimate that the new digital identity regime will require £1.8 billion in funding over the next three years. The OBR's forecast includes £1.3 billion in capital funding and £500
million in operational costs. However, the government claims that the costs will be met from existing departmental budgets and has not identified specific savings. The digital ID initiative, which will be mandatory for employment checks by 2020, has been a subject of scrutiny and debate in recent parliamentary sessions.
Why It's Important?
The disagreement over the cost of the digital ID regime underscores the challenges of implementing large-scale government projects. Accurate cost estimates are crucial for budget planning and ensuring the project's financial viability. The lack of clarity on funding sources could lead to delays or compromises in the project's scope. The digital ID initiative is significant for enhancing security and efficiency in identity verification processes, impacting businesses, government agencies, and citizens.
What's Next?
The UK government plans to conduct a public consultation to gather input on the digital ID regime's design and costs. The results of this consultation will inform the project's implementation and funding strategy. The government is expected to provide more detailed cost breakdowns and funding plans in future budget statements. Stakeholders, including businesses and privacy advocates, will likely continue to engage in discussions to shape the digital ID framework.
