More than four out of five public and third sector finance directors expect new Gershon-type efficiencies and just over half think local grants will be cut, according to a new study from the Chartered Institute of Public Finance & Accountancy.
Commissioned by Civica, the online study of 129 finance and resource directors across UK central and local government, health, police, education, housing and charities, conducted earlier this month found that:
• nearly all respondents - 93% - said demands for efficiency savings and value for money was their most pressing agenda item
• almost three quarters - 74% - were experiencing increased pressures to deliver results but also maintain services
• most public sector bodies - 83% - think that a new government elected next year will introduce further Gershon-type efficiencies over the next few years
• just over half – 54% - believe local funding settlements and grant entitlements will be reduced
• just under half (48%) also believe that there will be a further round of sector re-organisations to reduce costs
• nearly half (46%) think public sector pensions entitlements will be reduced
The picture could be no better by the time of an incoming government, with 41% - of public sector bodies polled believing that economic confidence will be the same at the time of the next general election but slightly more - 43% - believe it will be worse than now.
However, finance professionals think that innovative approaches to service delivery partnerships, procurement and funding could help sustain local service resilience in the face of these pressures.
The row over MPs' expenses may have harmed trust in public servants but responses suggest this is counterbalanced by the level of scrutiny they are under.
Nearly half of respondents - 46% - said there was some evidence that trust in public servants had affected them, although 21% said there was no evidence of this at their organisation.
Nearly three-quarters (74%) said that their use of public resources was subject to existing scrutiny/audit processes and over one third (36%) were already required by the government to provide evidence of value for money.
