Bank of England's RTGS Overhaul Praised by PAC: A Model for Government Projects

Bank of England’s Technology Project Hailed as a “Model” by Parliamentary Audit Committee

Large-scale IT projects in the public sector often carry a reputation for budget overruns and schedule delays. However, the Bank of England’s (BoE) ambitious technology overhaul project has attracted rare praise from the UK Parliament’s Public Accounts Committee (PAC), becoming a focal point of attention.

According to a May 3, 2026, report by The Register, PAC commended the Bank of England’s efforts to revamp its Real-Time Gross Settlement (RTGS) system, describing it as a “rare success story in the public sector.” In contrast to the typical pattern of “failures and lessons learned,” the committee suggested that other government agencies should draw inspiration from this project.

A £431 Million Project Sets an Example

The RTGS system upgrade, which is the focus of this recognition, is a £431 million (approximately 80 billion yen) initiative aimed at transitioning the backbone of interbank settlements in the UK financial system to state-of-the-art technology.

The PAC’s report praised the Bank of England for addressing “inevitable challenges in major long-term digital programs” and overcoming many issues that frequently plague public sector transformation projects. It highlighted several key factors contributing to the initiative’s success.

First, the BoE invested two years before the project’s formal start in extensive planning, analysis, and design. A comprehensive “blueprint” created in 2017 clearly outlined five key priorities for the new RTGS system.

Additionally, input from experts in payments, technology, and procurement was incorporated to define clear requirements. The BoE also engaged with industry stakeholders to identify development priorities, collaborated with other central banks, and conducted independent external evaluations.

The procurement process also stood out, as the BoE was able to utilize ideas from all bidders, not just the final contractor. This adaptability was identified as another critical factor in the project’s success.

A Stark Contrast to “Disasters Across the Spectrum”

PAC’s decision to spotlight this success comes against a backdrop of repeated failures in IT projects across the UK public sector.

For example, the Emergency Services Network—designed to modernize communications and data systems for emergency services—has been delayed by approximately 12 years and has exceeded its budget by over £3 billion. Similarly, the National Savings and Investments (NS&I) agency’s digital transformation project has overrun its original budget by £1.3 billion and is expected to face a four-year delay upon completion. PAC has harshly described the NS&I project as a “disaster across the spectrum.”

In this context, the Bank of England’s ability to stay largely on budget and on schedule with its RTGS project makes it a valuable case study for the public sector.

A Rare Recommendation: “Learn from This Success”

Typically, PAC reports urge government agencies to “learn from failures.” However, this time, the committee made an unusual recommendation, calling on the Cabinet Office, the Department for Science, Innovation and Technology (DSIT), and the National Infrastructure Services Transformation Agency (NISTA) to study this rare success story and use it to improve the implementation of digital transformation projects across the government.

The Bank of England’s RTGS overhaul underscores the importance of returning to fundamentals: diligent planning, leveraging expert advice, collaborating with industry, and adopting flexible and inclusive approaches to procurement. These elements, as demonstrated, are crucial to enhancing the success rate of large-scale IT projects in the public sector.