All government departments are to be encouraged to procure new IT services based on a cloud computing model, as Whitehall is committed to a cloud strategy to be delivered within the next three years.

As part of the Digital Britain report published today, the development of “G-cloud” – a government-wide cloud computing network, is to be made a priority.

The Whitehall CIO Council is working with IT trade body Intellect on a business case that will form the basis for funding a standardised environment for running public services.

While the plan is developed over the next three years, all other IT services procurement should look to follow a similar model in preparation.

“In the meantime, all those government bodies likely to procure ICT services should look to do so on a scaleable, cloud basis such that other public bodies can benefit from the new capability,” said the Digital Britain report.

To make sure the cloud strategy is followed, government chief information officer (CIO) John Suffolk is to be given new powers to sign-off all major IT projects.

Previously, final approval rested with accounting officers in individual departments, and Suffolk may or may not have been involved in a consultative role. But now, to ensure the policy of IT standardisation is followed and to prevent projects veering away from the new strategy, Suffolk will have greater responsibility.

“The Digital Britain report recommends that the government take the necessary steps to secure that the Government CIO has a ‘double lock’ in terms of accountabilities and sign off for such projects. That will secure government-wide standards and systems,” said the report.

The plan also recognises that smaller IT suppliers have found it difficult to bid for government projects, and the report introduces recommendations that are designed to allow such small, innovative firms a better opportunity to provide their services through a simpler, faster purchasing process.

“The Digital Britain report recommends that the CIO Council agree a small number of potential areas for tender, and ensure the availability of a simplified, fast-track process (consistent with EU procurement rules) aimed at allowing such innovative companies to participate at the main contractor level rather than seeking sub-contractor status with incumbent bidders who may not wish to fit the particular innovation into their wider procurement bid,” said the report.

The report highlights the development of a virtual Public Service Network (PSN) with “common design, standards, service level agreements, security and governance.”

The first major procurement to conform to the PSN concept will be the Foreign and Commonwealth Office Ocean project, a framework agreement to cover purchasing of communications equipment.

The creation of the PSN and G-cloud are aimed at supporting a Digital Switchover of Public Service programme that will see more government services moved online, and many offered through the internet as the main point of access.