An independent review has recommended a number of changes to the local use of technology, and suggested the appointment of more digital chiefs and improved skills and training.
The Digital Government Review (PDF) was commissioned at the end of last year by the Labour Party and was carried out by a committee of experts.
The findings were released on Tuesday, and include a number of recommendations that Labour could adopt for its General Election manifesto.
"This is, in part, a document setting out how [trust] can be earned and deserved, and how it can be brought to every citizen regardless of their means and expertise," reveals the report.
"But it's also a document with a clear vision for something larger: for explaining what an authentically progressive, democratic version of digital inclusion looks like - and how it differs from the top-down hopes of recent history."
The review makes a number of recommendations, each of which could become official Labour policy, and suggests that changes should be nationwide and affect everything from government procurement to individual internet use.
The government should endeavour to get the most out of technology, according to the report, and should enable its citizens to do the same.
"Making the most of the opportunity digital presents demands a new approach. It must be flexible, adapting to new opportunities and risks as they arise," it adds.
"It needs to grow from the ground, harnessing the creativity of people and communities around the country rather than being designed in and for Whitehall."
The changes could address concerns such as closing the digital divide.
"The government has failed effectively to address digital inclusion. It has failed to understand or assist the 21 percent without basic online access and skills," the report said.
Such activities have been left to local councils and the private sector with very minimal investment from the government.
The report claimed that improving the technology skills of an extra 4.9 million people could save the country some £189m.
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