Are we in for even more Public sector spending cuts?

Helping Public Sector Organisations Achieve Their Spending Cuts

Chancellor George Osborne has announced even more PUBLIC SECTOR spending cuts in today’s BUDGET 2014, which will mean that most departments will need to continue finding areas where they can cut budgeting costs or save money.

Public sector budgets and staff will bear the brunt of the government’s crackdown on spending, with an extra 1% cut to Whitehall spending in the next two years and a continuing 1% pay cap for public sector employees. In his Budget announcements, chancellor George Osborne said central government departments’ budgets would be cut by an additional 1%, after an £11bn underspend this year.

Departmental spending will be reduced by £1.1bn in 2013-14 and £1.2bn in 2014-15 – equivalent to a 1% reduction for most departments. The budgets for schools and health remain unchanged. HM Revenue & Customs is also protected from the extra cuts and there were no changes to existing allocations for local government and police budgets for 2014. Osborne confirmed that overseas aid will be 0.7% of national income next year.

Pre-2008, when things looked rosy, public sector growth led to many public bodies expanding rather than shrinking. As a result, over the last decade, there has been significant investment in new technology, infrastructure and workplaces. Unfortunately the benefits of this investment have not been taken advantage of, mainly due to political inertia, poor management and a lack of business motivation in a wasteful booming economy. Now, with very few exceptions, property markets and values have fallen through the floor. As a result, many previously reluctant public organisations are now being forced to seek significant property and related savings as well as service improvements.

Many Councils are considering co-locating with other public bodies as a way of saving public property costs. Countless organisations are decreasing staff numbers and are looking to make use of their existing property portfolios to support distributed and remote working – using neighbourhood offices, libraries, housing centres and depots as touchdown offices – all of which will reduce and change the overall central office requirement.
Due, in most part, to culture and management apathy, remote and home working has, to date, had limited success in the public sector, but the ability to use home as a workplace regularly or occasionally for a large element of the workforce is one of the key aspects cost saving initiatives.

The office is certainly not dead, but its function is changing as technology enables re-definition of work and the workplace. The overall result of cost cutting, sharing, outsourcing and new ways of working is that many organisations will be, and are, implementing plans to reduce their office requirements by up to 40%.

This is at the core of what space-pod does and we have already helped Local Authorities, Councils and other Public Sector bodies to maximise reduced working spaces and achieve some notable productivity and working environment improvements.

To find out how, just visit our website and fill-in a few details in the panel on the left of the screen and let’s talk!