Laura Sharman 04 December 2012

Public sector to face ‘special measures’ in 2013, warns KPMG

A number of public sector organisations will face the equivalent of insolvency in 2013 as tough austerity measures hit front line services, warns KPMG’s head of public sector.

Alan Downey argues that many public sector organisations will be subject to intervention over the next 12 months, with new management teams brought in to resolve crisis situations for worse case scenarios.

However, he also said that a ‘catalogue of disasters’ in the public sector could be avoided if new approaches and initiatives were given the chance to succeed.

Downey said: ‘Many public sector leaders are approaching 2013 with a hint of trepidation, nervous in the knowledge that the reserves that kept their organisation going in 2012 are running out. With bail outs less likely and more cuts on the way, I expect to see an increase in the number of organisations facing the public sector equivalent of insolvency.

‘The best case scenario will be a rise in the number of distressed organisations pooling resources or merging. The worst will witness a step change in failing organisations facing special measures, with tough new management teams parachuted in to resolve crisis situations.

‘The good news is that the Government remains committed to reform and, in some cases, radical change. As a result, the next year will see more decentralising of power and a greater array of public services opened up to competition. Whether this will lead to improved results and a better delivery of key services remains to be seen, but the chances of success will improve if new ideas are given a chance and new approaches to budgeting are put to the test.’

Downey added that responsibility for ‘social financing’ should be accepted by service providers, such as the adoption of ‘Payment by Results’.

SIGN UP
For your free daily news bulletin
Highways jobs

Programme Director – Local Government Reorganisation

Staffordshire County Council LGR Hub
£Competitive
Lead one of the most significant local government transformation programmes in England! Staffordshire / Stoke on Trent
Recuriter: Staffordshire County Council LGR Hub

Executive Director – Place and Prosperity

South Derbyshire District Council
£106,484 up to £115,687 plus an essential car user allowance is also paid.
We are seeking an exceptional Executive Director to help shape the future of South Derbyshire at a pivotal moment in its history. Swadlincote, Derbyshire / Agile
Recuriter: South Derbyshire District Council

Music Centre Instructor

North Yorkshire Council
£22,601 to £35,259
Skipton Music Centre is a lively Saturday morning centre, providing musical learning for children and adults across a range of instruments and genres. Skipton, North Yorkshire
Recuriter: North Yorkshire Council

Wellbeing and Personal Development Lead

North Yorkshire Council
£38,220 to £42,839 per annum
Help Transform Lives Through Wellbeing, Personal Development and Inclusion North Yorkshire / countywide
Recuriter: North Yorkshire Council

Learning Facilities and Asset Officer

North Yorkshire Council
£31,537 to £34,434 per annum
Help Shape Outstanding Learning Environments for Young People with SEND North Yorkshire / countywide
Recuriter: North Yorkshire Council
Linkedin Banner