Why couldn't they use a local analytics system? Perhaps partner with one of the OS analytics like Piwik?
Edit: Um, I just looked, they don't appear to be using GA but a local system already?
If it was a traditional software system that actually ran on the servers owned by the government then that would be fine.
With GA, at the very least Google get to know when I visit the site, and likely which pages I visit, simply through the requests my browser makes.
I'm not familiar enough with GA to be able to judge how much else is transmitted to them.
I guess I'm just very suspicious when personal data crosses borders.
EDIT - also wondering what you mean by a separate deal? If the data goes to the US it goes to the US and is then subject to US laws (and no longer subject to EU/UK protections, deal or no.
If I was a twitterer I might tweet about it too, but I'm not so I won't.
I've just (17:10 utc) at the source for http://digital.cabinetoffice.gov.uk/ and http://digital.cabinetoffice.gov.uk/2012/10/16/gov-uk-the-st... there is only one occurrence of the string "google" in the page, and that is is link to a font called 'cabin':
<link rel='stylesheet' id='linen-accent-font-style-css' href='http://fonts.googleapis.com/css?family=Cabin:bold type='text/css' media='all' />
Doesn't look like they are using google analytics to me, at least not now.
_gaq.push(['_setAccount', 'UA-26179049-1']);
We're also referring to http://gov.uk, which is what the OP link refers to, not the OP link itself.
Except for loading in google analytics. I'd really rather that my interactions with my government were not reported to a US based megacorp.