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

Adults Social Worker - North Essex (Expression of Interest)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid Working
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in North England, Essex, Colchester
Recuriter: Essex County Council

Family Centre Worker

Essex County Council
£26284.0000 - £33256.0000 per annum
Family Centre WorkerFixed Term, Full Time£26,284 to £33,256 per annumLocation
Recuriter: Essex County Council

Archive Assistant

Essex County Council
£25959.0000 - £27613.0000 per annum
Archive AssistantPermanent, Part Time£25,959 to £27,613 per annum (full time equivalent)Location
Recuriter: Essex County Council

Part Time Early Years Workplace Coach

Essex County Council
£29468.00 - £34668.00 per annum + Pro Rata
Part Time Early Years Workplace Coach - (Apprenticeships & Work Based Learning)Permanent, Part Time£29,468 to £34,668 per annum, full time equivalentL England, Essex, Harlow
Recuriter: Essex County Council

Adults Social Worker - Mid Essex (Various Teams)

Essex County Council
£38487 - £51834 per annum
We're an adult social care service that wants to see citizens of Essex have as much choice and control over the way they live their lives as possible England, Essex, Chelmsford
Recuriter: Essex County Council
Linkedin Banner