One irony from the current torrid time faced by Gordon Brown is that the issue that was once his greatest strength – the economy – is what has laid him low.
Dithering over elections and pushing through Draconian anti-terror laws have not helped but, as John Prescott reminded PF this week (pages 26–27), in the end it always comes down to ‘the economy, stupid’.
The public sector, already preparing for the joys of Gershon Mk II, will now face increasing pressure. Whoever is in power in two years’ time will have even less money to play with and a range of competing priorities.
In this climate, the role of the public services finance director has become critical. As our round table debate showed (pages 20-25), an effective FD can make the difference between success and failure, honour and ignominy.
CIPFA members, currently preparing to head to Brighton for their annual conference, can rest assured that the finance director remains at the heart of public sector bodies. Institute research discussed at the round table showed that 90% report directly to the chief executive – and are there when the key decisions are taken.
It’s not an easy time for FDs, who have an ever-expanding job description. They have, of course, to control budgets and close accounts, but they must also improve performance and give a strategic lead. Oh, and they might have additional responsibility for IT, property and HR.
They can’t pick and choose these roles – it’s all or nothing. And it’s vital they get the basics right before taking on business transformation.
But, as Worcestershire’s Mike Weaver pointed out during the round table, it is also important for the finance function to produce better outcomes for citizens and service users. Are taxpayers getting enough bang for their bucks, he asked.
No doubt this question will be discussed in depth at the conference. Look out for full coverage in next week’s issue of PF.
