07 November 2003
Union officials have warned that further job cuts may be looming if the Audit Commission loses its battle to audit NHS foundation trusts, after the regulator announced it is cutting 250 posts.
Chris Finnerty, lead negotiator for union Prospect, told Public Finance that fears were mounting that the cuts, announced on November 5, could presage further losses later on.
He warned that the financial freedoms being offered to foundation hospitals could spell disaster for the 800 Prospect members who work for the regulator.
'It has taken some time to gather together the experience, specialist expertise and qualifications that Prospect members bring to their work at the commission and this should not be discarded lightly.'
Chief executive Steve Bundred had earlier provided grounds for those fears when he confirmed that these cuts were just the beginning of the process, singling out health as the next possible place for the axe to fall.
'We will be looking constantly for other areas where we can cut back or scale down without risk,' he said.
But Finnerty said union negotiators were hopeful they could persuade Bundred and commission chair James Strachan that not all the posts needed to be lost.
'The consultation process regarding the proposed redundancies is just beginning and we are in the process of drawing up alternative proposals,' he told PF.
Strachan outlined plans to move towards a system of 'strategic regulation', which would require fewer inspections and therefore allow the commission to cut its 2,500-strong workforce by 10% over the next two years.
He said the commission was hoping to achieve the reduction through natural wastage and voluntary redundancies, although he did not rule out compulsory redundancies if necessary.
The announcement came just a week after a major Treasury-inspired review of efficiency in the public services got under way under the leadership of Peter Gershon. Lower than expected tax revenues mean the government is determined to wring maximum value from its investment in services.
Lighter-touch inspections would cut the fees paid by local authorities to the commission by 12% per year, saving taxpayers – and by extension the Treasury – £24m in the first two years and £24m each year thereafter.
The cuts announced by the commission will fall within its local government division, which accounts for two-thirds of its inspection activity.
Strachan said that, as a champion of value-for-money public services, the commission should ensure its own operations were as efficient as possible. He called on other regulatory bodies to avoid the temptation to 'micro meddle and micro manage'.
He added: 'We think that audit and inspection in the public sector could be reduced without seeing a parallel drop in the quality of public services.'
PFnov2003
