The UK government's Matrix project, a shared services cluster strategy, has been rated red by the National Infrastructure and Service Transformation Authority (NISTA) [1]. The project, which aims to move nine government departments to shared ERP and HR systems, has experienced delays and is now considered unachievable without urgent action. According to the NISTA report, the rating reflects 'a number of material issues' identified during project planning [2]. The project has been plagued by issues, including system issues and a lack of functional subject matter expert capacity to undertake testing [3].

The Department for Science, Innovation and Technology (DSIT) is leading the project, which includes the Cabinet Office, Department for Energy Security and Net Zero, Department for Culture, Media and Sport, Department for Business and Trade, Attorney General's Office, and the Department of Health and Social Care [4]. The UK government has admitted that two major planks of its multibillion-pound shared services strategy are in serious trouble [5]. The Matrix project is just one of five clusters the government is betting will save £4.3 billion by migrating a total of 17 departments and 300 arms'-length bodies onto shared tech platforms [6]. The project's delays and issues have raised concerns about the government's ability to deliver its shared services strategy [7].

In fact, MPs have warned that the Treasury's reluctance to join the project could undermine its success [8]. The UK government's shared services strategy is entering the danger zone, with auditors warning that the government needs to do the math before banking on £45B AI savings [9]. The government's use of AI and other technologies is also raising concerns about the potential risks and benefits [10]. In conclusion, the UK government's Matrix project is facing significant challenges, and its success is far from guaranteed.

The project's delays and issues have raised concerns about the government's ability to deliver its shared services strategy, and the potential risks and benefits of using AI and other technologies.

Sources

  1. NISTA report for fiscal 2025-26, https://www.gov.uk/csv-preview/6a4fb28da6586e258d371bfd/NISTA_Major_Projects_Annual_Report_2025-2026_Data.csv
  2. The Register, 'Major glitch in Matrix as UK government projects watchdog rates shared services cluster red', https://www.theregister.com/public-sector/2026/07/20/major_glitch_in_matrix_as_uk_government_projects_watchdog_rates_shared_services_cluster_red/
  3. The Register, 'UK government wants to reload the Matrix. But is there a glitch?', https://erp.today/the-uk-government-wants-to-reload-the-matrix-but-is-there-a-glitch
  4. The Register, 'The $150 Million ERP Disaster Waiting to Happen: Why the UK Government's Matrix Project is Doomed', https://www.thirdstage-consulting.com/blog/the-150-million-erp-disaster-waiting-to-happen-why-the-uk-governments-matrix-project-is-doomed
  5. The Register, 'Why the UK Government's $150 Million ERP Project is Doomed to Fail', https://www.linkedin.com/pulse/why-uk-governments-150-million-erp-project-doomed-fail-kimberling-jdubc
  6. ZDNet, 'Major UK IT projects at risk of failure, warns government watchdog', https://www.zdnet.com/article/major-uk-it-projects-at-risk-of-failure-warns-government-watchdog
  7. The Register, 'UK Treasury unsure about joining £1.7B program it is funding', https://www.theregister.com/software/2026/03/06/uk-treasury-unsure-about-joining-17b-program-it-is-funding/4537259
  8. The Register, 'MPs fear Treasury cold feet could sink Whitehall's £1.15B shared services push', https://www.theregister.com/public-sector/2026/07/15/mps-fear-treasury-cold-feet-could-sink-whitehalls-115b-shared-services-push/5271668
  9. The Register, 'Auditors tell UK government to do the math before banking on £45B AI savings', https://www.theregister.com/software/2026/07/18/auditors_tell_uk_government_to_do_the_math_before_banking_on_45b_ai_savings/5272513
  10. The Register, 'Using AI makes people less likely to admit they don't know something', https://www.theregister.com/ai_and_ml/2026/07/19/using_ai_makes_people_less_likely_to_admit_they_dont_know_something/