With announcements due next week on how the government proposes to find £6bn in Whitehall savings to help reduce the deficit, the spotlight will fall on public sector finance functions (Finance), which will be expected to be the stewards of the nation’s public finances.
Fiscal consolidation is the single biggest challenge facing government and the public sector. So the strategic challenge facing the public sector has moved squarely into the heartland of Finance. There is an imperative for the public sector to cut costs and manage spend more tightly than for a decade.
But only a fifth of public sector respondents consider their role to be that of a business partner, according to the second of an annual series of research by PricewaterhouseCoopers examining the trends, issues and changing environment faced by finance directors across the public sector. Finance, therefore, has a considerable way to go to own its place at the top table as a fully integrated partner to the business – and yet time is of the essence if it is to make the contribution that the public sector needs.
We believe that the public sector should set the bar high and expect only the very best from its finance professionals. A planned proactive training and development programme would reap real benefits, as would a clear focus on workforce planning. Finance people must also be given the opportunity to acquire and develop the broader management skills they will need in order to make a full contribution to the organisation.
The leaders of public sector organisations are looking for help and Finance can deliver the insights, if it can step up to the mark. Strong leadership will be crucial now as Finance seeks to focus on the higher value insight activities and help public sector organisations cope financially. The time for Finance to take action is now and will require the support of incoming ministers and organisational leadership. They need to support and actively sponsor the finance community.
Last year, we said that Finance in government and the public sector was at a crossroads and faced major challenges. The scale of those challenges is now more apparent than ever. In our view, Finance must raise its game now or the public sector will struggle to cope with the onset of its own recession.
John Berriman is partner and head of the government and public sector finance practice at PricewaterhouseCoopers. The PwC research report referred to in this article -'A place at the top table? Raising finance’s game in the public sector” - is available on the PwC Public Sector Research Centre website (www.psrc-pwc.com )
