2010: a budgetary odyssey

"Doing better with less" is the mantra ringing out across the public sector as we enter a new decade

The extent is unclear, but that there will be cuts is a given – after a decade of investment, the budget deficit means public expenditure must fall regardless of who is returned to government in the spring. Most managers will need to find new ways of working; some will have to deal with systemic change. But will it all be bad news in 2010?

Martin Tiplady

Public spoke to senior managers in different sectors for their views on the challenges ahead.

Martin Tiplady, HR director, Metropolitan Police
2010 is not going to be easy, with anything from 5-25% cost reductions. More may be easier to take than less: new approaches instead of trimming around the edges. Our biggest endeavour is how to keep essential services going at affordable cost – there are no sacred cows. Protecting frontline staff is a priority, but will depend on how successful we are in looking at support costs. We don't expect there to be a reduction in overall police officer numbers; if there is it will only be because every other avenue has been explored and re-explored. Another issue for next year is that the workforce is not turning over at its natural rate: people aren't leaving, either through lack of opportunities or for their own security. How do we keep people interested, motivated, introducing new thinking? It's good to retain experience, but lack of movement can breed staleness.

Mike Cooke

Mike Cooke, director of Organisation Development, Camden council
We'll have to go beyond simply eking out efficiencies and do things more innovatively in 2010, with a step change of 20% compared to now. In the 1990s we would have set departmental budget targets with no prioritisation; now we'll see a different model of service review, and will have quite likely have to reduce some services and stop others. Given that we have to do it, the aspiration is to become fitter, working with public sector partners on joining things up, with communities on volunteering. It's a brave person who says there's a bright side to the recession, but the options are to slash and burn or avail ourselves of an opportunity. Following massive investment, the killer question in 2010 is whether these are the local government services people value and want. We will be given the chance to get closer to our communities, and deliver to their informed requirements.

Peter Kane

Peter Kane, director of performance and finance, Home Office
Crucial to 2010 is planning for the transition into harder times in 2011-12. We are rolling out a series of budget, risk and value-for-money workshops, equipping senior staff to provide the high-quality advice needed to make tough decisions on prioritising resources. We have a programme looking at corporate services, where we can extend shared services, making sure we have smart procurement. Investment has delivered a lot, but in 2010 we'll have less money and more pressures. We have a commitment to providing support for frontline policing, but even areas given the highest priority will have to go further in delivering savings. There are no plans for redundancies, though we'll obviously be looking at workforce plans. Managers now have to deal with greater uncertainty, but leaders step up to the mark in challenging times.

Professor James Barbour

Professor James Barbour, chief executive, Lothian NHS
We'll present a five-year strategy to our board in January, looking beyond 2010 to partnership with other services, investment in training and new technologies, and seeking opportunities to affect the skills mix in our workforce. Efficiency savings go into our reinvestment programme – the savings target for next year is £25m. We have an impetus in that you can't exist with service models that don't demonstrate best use of technology and unleash potential. We will continue to monitor our ratio of admin staff to doctors, which is among the best in Scotland, and will be moving expenditure from back offices to the frontline. Lean management techniques have already paid dividends in terms of increased productivity and understanding the changes that can be made for less. Those carried out so far have seen radical results with increased quality. This bodes well for 2010.

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