The shift to digital in planning represents a significant move towards economic growth, says TPX Impact.
- Land Registry still heavily relies on paper forms, hindering efficiency and growth.
- TPX Impact has secured a £19m contract to digitalise planning processes, aiming to streamline operations.
- Government spending cuts are impacting TPX’s revenue, yet new contracts spark cautious optimism.
- The UK government is focused on speeding up planning processes to build 1.5m homes and boost the economy.
Digitalising planning processes has been highlighted as a vital component in bolstering the UK’s economic growth. This perspective is supported by TPX Impact, a digital transformation firm, which emphasises the potential benefits of reducing reliance on outdated paper systems like those still in use at the Land Registry. Björn Conway, the firm’s leader, underscores the importance of moving towards more efficient digital operations to fulfil governmental growth commitments.
A key aspect of this transition is TPX Impact’s recent £19 million contract with the Ministry for Housing, Communities and Local Government. The aim is to enhance service delivery and operational efficacy within the planning system. By digitising the updating process of the Land Registry, there has been a noticeable decrease in inbound calls, allowing for more streamlined operations and improved public service.
Despite these advancements, TPX Impact has faced financial challenges amidst a reduction in government expenditures, its largest client base. Over the recent period, the company reported a 9% decline in turnover to £37.8 million and a significant pre-tax loss reduction to £4.1 million. The firm attributes part of these financial difficulties to delays in client decision-making and the impact of increased National Insurance Contributions.
However, there has been a recent uptick in securing new contracts, sparking some optimism about future growth prospects. While TPX Impact anticipates stable revenue growth for the year with an adjusted EBITDA between £7-£8 million, market confidence remains cautious as evidenced by a 6.9% drop in share prices.
In an effort to further stimulate economic growth, the UK government has set a target to erect 1.5 million new homes. The administration has asserted that modernising the planning system is paramount to improving national prosperity and citizens’ living standards.
Overall, the digitalisation of planning is poised to be a significant catalyst for economic growth in the UK.
