Tuesday 8 June 2010 - Jobs and services are likely to be cut as part of the response to the continuing recession, according to public sector Chief Financial Officers (CFOs) consulted by the Chartered Institute of Public Finance and Accountancy (CIPFA).
CIPFA talked to 435 CFOs across the public sector in all parts of the UK. The survey is sponsored by Civica, a market leader in specialist software systems and outsourcing services.
The most popular options for efficiency savings were redesign of services - providing the same services for less money, cutting back office functions and support staff, chopping senior management and reducing low priority services.
When asked about likely options for rebalancing the public finances, two thirds felt the most effective solution would be the re-organisation of national public bodies, whilst over half thought re-organising local public bodies was on the cards.
Other possibilities mentioned by around half of CFOs included increasing taxation, reducing the range of state funded services and introducing user charges for services.
When asked about the impact of initiatives which emphasize better integration of public services (such as Total Place), CFOs thought the most important outcomes were;
• Better coordination and collaboration between local public bodies
• Increased focus on the user of public services
• Reductions in waste and duplication in local public services
Steve Freer, CIPFA Chief Executive said:
“It’s clear that CFOs from across the public services are expecting reductions in both services and jobs as a result of the squeeze on the public finances. It is, therefore, more important than ever that finance teams work to reduce the impact of cuts on front line services.”
Tom Lane, Financials Local Government Director at Civica, said:
‘Public sector finance directors will have to consider radical innovations such as service redesign and process improvements, larger scale collaborations and sharing of services, to transform overall service costs. In addition, all private sector suppliers are going to have to change delivery models to help customers through these challenging times.’
Notes
1. CIFPA undertook this survey of public service finance directors in March/April 2010. Responses were received from 435 CFOs in local government, the NHS/health, social housing, higher education, central government/executive agencies and police and fire services.
2. The survey followed work carried out for CIPFA in 2008 by YouGov, which informed the CIPFA guidance document Role of the Chief Executive Officer in Public Sector Organisations.
3. Headline figures from this CIPFA survey can be seen at http://www.cipfa.org.uk/pt/download/role_of_CFO_in_LG_2010_WR.pdf
About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.