Public sector CFOs face up to cutbacks
Posted by admin in Career Ladder on Thu, 17/06/2010 - 10:41
Finance professionals in the public sector are going to have to learn to do more with less as efficiency savings kick in, according to figures from CIPFA.
Back office functions and support staff are likely to be among the first to be cut, alongside senior management and low priority services, according to the Chartered Institute of Public Finance and Accountancy (CIPFA).
The institute recently conducted a nationwide survey of public sector CFOs, half of whom believed a re-organisation of local public sector organisations was on the cards.
“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,” said Steve Freer, chief executive of CIPFA.
When asked about likely options for rebalancing the public finances, around half of CFOs said increasing tax, reducing the range of state funded services and introducing user charges for services.
“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,” added Tom Lane, financial local government director at survey sponsors Civica.
The Bottom Line:If Mr Cable has his way...
"If Mr Cable had his way, all the big banks would be broken up and bonuses would be virtually eliminated - a sure-fire way in my view of guaranteeing an end to the UK’s ability to compete as an international financial centre. Let’s not forget that this is a man who is on record as saying that everyone who works in a bank has an ‘aristocratic lifestyle’ clearly demonstrating his lack of understanding of the sector." A tough line on bankers’ bonuses could make a brain drain of financial talent a distinct possibility, warns Paul Marsden. Read more