Contractors could be the unlikely beneficiaries of the Spending Review Framework proposed by government to address the burgeoning public sector finance deficit and cut spending.
The spending review will require each department to deliver initial plans detailing priorities that must meet tough new criteria. These include asking: is the service essential, does it have to be funded by government, and can it be provided more efficiently? These budgets, once agreed, will comprise the government’s spending plans for the next Parliament from 2011-2015.
As outsourced service providers, contractors could play a key role in providing more efficient, lower risk solutions to many government services. In particular, project and change managers are likely to be in great demand to help the public sector adapt to a new regime.
External, and internal, engagement
After the initial planning phase, the next stage of the review will be a consultation, and a so-called ‘Star Chamber’ of ministers and civil servants will be established to challenge spending plans.
Additional expertise will be brought on board as needed from outside the government to form a Spending Review Challenge Group, intended to challenge proposed solutions and act as champions of departments.
According to the Treasury, it is not the intention of the Spending Review only to cut spending and set budgets, but also to re-evaluate the Government’s role in providing public services.
It is a time to rethink how government spends our money
George Osborne, Chancellor
Rethinking government spending
Chancellor of the Exchequer George Osborne says: “It is a time to rethink how government spends our money.” And the evidence suggests that there are major savings to be made in public spending, as ongoing Freedom of Information Requests reported in the Guardian continue to show how even relatively tiny public sector projects can go seriously awry, with costs escalating, seemingly without accountability.
“This is the great national challenge of our generation,” continues Osborne, “to deal with our debts, to set our country on a brighter economic course, and show that we are all in this together.”
Published: Wednesday, June 09, 2010
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