Finance directors expect greater push on efficiency

24 Jun 09
The vast majority of public sector finance directors expect an acceleration of Gershon-style efficiency demands over the next few years, according to a CIPFA survey

By Vivienne Russell

24 June 2009

The vast majority of public sector finance directors expect an acceleration of Gershon-style efficiency demands over the next few years, according to a CIPFA survey.

The survey, commissioned from CIPFA by software company Civica and published yesterday, found that 83% of finance directors working across the public and third sectors think a new government will press on with an efficiency drive.

Almost all of the 129 respondents (93%) said efficiency demands and value for money were their most pressing agenda items. Almost three-quarters (74%) said they were under pressure to produce efficiency gains while maintaining the standard of services. Just over half (54%) of respondents said they believed local funding settlements and grant entitlements would be reduced.

Despite this bleak outlook, the survey also revealed that many organisations were beginning to rise to the challenges they faced. A majority of respondents said they were considering redesigning their processes and service delivery structures, extending partnership working and adopting more innovative procurement practices.

There was also evidence of some fresh thinking on funding with 40% of respondents calling for the reinstatement of local taxation powers and 37% believing mutual funds to finance capital projects would help.

Ian Carruthers, policy and technical director at CIPFA, said: ‘[Finance professionals] clearly expect the situation to get worse over the next few years. The survey shows they are examining innovative approaches to the funding and the delivery of services to help “square the circle” in the future.’

Tom Lane, financial systems director at Civica, said: ‘This survey indicates that finance professionals are coming up with more practical ideas that will help to deliver procurement-based savings, whether through wider and more effective frameworks or rethinking funding for innovation across the sector and its partners.’

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