It is against this backdrop that the coalition government announced the emergency budget in May 2010 and with it an initial £6.25bn worth of efficiency savings. However, this figure is dwarfed by the Institute of Fiscal Studies’ statement that the UK Public Sector needs to
find an initial £35bn of efficiency savings in the next 18 months, adding that all of the initiatives undertaken so far have only delivered £8.5bn to date. The fact that there is also around an 11% gap between the government’s income and expenditure means that without significant efficiency savings the UK will need to borrow even more, adding to our current
To bring the deficit under control will probably translate into cuts of 15% of more to the budgets of public sector organisations over the next few years. This means we face the need for an almost unprecedented level of transformational change within the public sector, bringing radical changes to the way services are commissioned and managed and the disappearance or merger of non-core and inefficient services.
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