Public sector must prepare for Brexit impact, says CIPFA president

13 Jul 16
All parts of the public sector must assess their financial resilience following the UK’s vote to leave the European Union in order to be prepared for the consequences of Brexit, the new CIPFA president has said.

All parts of the public sector must assess their financial resilience following the UK’s vote to leave the European Union in order to be prepared for the consequences of Brexit, the new CIPFA president has said.

Photo: Rafael Bastos

In his opening address to CIPFA’s annual conference in Manchester, Brian Roberts said that the current system of financial management was “under tremendous stress” and it would require commitment and hard work to boost resilience.

He told delegates they must now remain level-headed and self-assured, and plan for the future following the leave vote on 23 June.

“What concerns me today and what I am sure concerns every one of you in this room, is what we must do now that [the decision] has been made,” he stated.

“As public finance professionals, this is a question each of us needs to be asking ourselves. Regardless of the sector you work in ­– health, local government, education – we must understand the implications our exit from the EU will have on public services and most importantly that we are prepared for it.”

Public sector bodies are already under massive strain following the government’s deficit reduction programme, and Roberts warned that despite their best efforts, some councils were facing bankruptcy.

“It is crucial therefore that we assess our financial resilience in the light of these ensuing calamities and ensure that, whatever else, we have in place strong, robust financial management,” he added.

This should not be a cause for despair, he insisted. “Public finance professionals are no strangers to challenge, we’ve had to be. And with Brexit, as with any other challenge, we will meet it with tenacity and ingenuity.

“As I see it, it is essential that CIPFA is here to provide guidance and support, maintain the networks of experts, listen to the concerns of its members and speak for them on the issues that matter, in essence, be the rock upon which the sector needs to steady itself.”

Roberts said the focus of his presidency would be building the resilience of public bodies so they can deliver further efficiencies and provide more with less.

“All of this can be summed up as CIPFA working to deliver excellent public finance. And it is this idea that I will be basing my presidency upon: that is, delivering excellent public finance.”

This will focus on three key areas, Roberts told delegates: boosting capacity, skills and development; improving cooperation between organisations; and campaigning for stronger medium term planning and sustainable finances.

Public bodies must have the tools they need to seize the opportunities that can help ensure they are sustainable, he stated, while breaking down organisational barriers can enable smarter working, more efficient services and provide important savings.

“If we want to balance budgets, meet service demand in social care, drive forward integration, we must be less short-sighted and plan for the future,” he concluded.

“Even before you add the implications of our exit of the EU, the next few years are going to be tough and present real challenges to those working in public services, however, with enough creativity, ingenuity and teamwork from professionals in the field, these will also be very exciting times.”

 

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