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Public sector faces a decade of recalibration to adjust to lower budgets, report suggests
The State of the State 2015 is the fourth annual report from the business advisory firm, Deloitte and think tank, Reform. The study collated data regarding government spending, economic figures and interviews with public sector leaders to shed light on areas of productivity, debt, financial distress, and the mood in local public services.
The report argues that productivity is a neglected area and could be used to greatly reduce national debt. The authors calculated that up to £72 million could be generated by boosting productivity and freeing just one hour of public sector workers time per year.
Mike Turley, UK and Global Public Sector leader at Deloitte, said: "Public sector staff work hard, but helping them work smarter could see considerable savings.
“Embracing technology, avoiding repetition of efforts and making evidence-based reforms can all help ensure staff time is spent as productively as possible delivering front-line services.”
The report found that the current government debt equals £23,428 for ever UK resident. However, if the debt interest continues to rise as it is the report claims that by 2034, the government will be spending more on servicing debt than on public services.
The report further stressed that over 200 frontline public sector organisations could be at risk and may require intervention during this parliament. The most significant of these organisations are NHS trusts, local government, police and further education organisations.
Turley added: "Each of the UK's central and devolved administrations need to be clear on the risk of financial failure in the public sector and plan for intervention. The next five years will see challenges in redesigning and refocusing local public services and those leading them are optimistic about managing this.
“But it will require strong political leadership and honest conversations with the public about what the public sector can, and cannot, continue to provide.”
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