IFS Claims More Public Sector Cuts to Come

The Institute of Fiscal Studies has claimed that the Chancellor has still to announce a further £15bn of cuts to Public Sector spending. This is on top of those included in the Pre Budget Report on Wednesday.

If true it would appear that, along with a few bankers, Public Sector budgets are amongst hardest hit by the final PBR before the Election. But the figures are being denied by Jack Straw who said the IFS had not taken into account savings the government has already made "We've already spent £4bn less on unemployment benefits and income support for the unemployed than was anticipated." He added that the government hoped to make further savings by "moderating the rate of increase of unemployment".

Strong Provider/Authority Partnerships Key
Whatever the truth of the real depth of the cuts, it will be those managers within the sector who produce the most innovative solutions across their service provision who'll benefit the most. Following the recent announcements by the Prime Minister, there can be no doubt that investment in technology has a role to play in this process. However, with tightening of budgets, greater emphasis will be placed on providers and Local Authorities to work together to identify the most suitable initiatives that will achieve long term efficiency savings and improvements to services.

Links
Institute of Fiscal Studies
Pre Budget Report 2009 Microsite
PBR Summary facts & figures from FT.com