HM Revenue and Customs set to award deal to consultancy founded by former Government Digital Service head Mike Bracken, who advised Labour on department’s transformation, then served as a director

HM Revenue and Customs plans to award a £14m strategy and delivery contract to consultancy Public Digital, following its founder Mike Bracken’s recently disclosed resignation as a director of the department.

The contract, which lasts three years with the option for a further year, is currently in a standstill period with 10 September as the earliest signing date. It involves supporting HMRC in adopting new ways of working, such as increasing the use of artificial intelligence and other digital technologies, as part of the department’s aim to shift more than 80% of customer interactions to digital channels and generate an additional £6.5bn in tax revenue. Kainos Software, Made Tech and North Highland UK made unsuccessful bids. Public Digital founder Mike Bracken, a former executive director of the UK Government Digital Service, participated in a panel convened by the Labour Party in April 2024 to examine modernising HMRC and increasing tax revenue by £5 billion. “I’m delighted that with this announcement the Labour Party is showing that it is serious about implementing much-needed reform, ensuring HMRC is ready to grasp the opportunities of digitisation and the internet era,” he said at the time.

Following the election in October 2024, Bracken joined HMRC as a director. He resigned in April 2025, although this was only added to his GOV.UK profile page in August, with no further details provided. Last month HMRC told PublicTechnology: “We’re grateful to Mike Bracken for his contribution to the Board and his advice and expertise in supporting our priority to reform and modernise.”

In July, the Cabinet Office awarded Public Digital and partners a £5m deal to support its Public Sector Reform programme, which includes sending ‘innovation squads’ to local authorities.