A public expenditure bloodbath?

Seamus McAleavey
16 June 2009 - 4:23pm
0 comments

Tagged as:

• Funding
• mergers
• recession
• Funding

The world economic crisis has seen significant job losses across a range of industries in the private sector. John Philpott chief economist at the Chartered Institute of Personnel says that will now happen to public sector jobs too and he describes a 'bloodbath'.

There is little doubt that after the next Westminster election the new government, of whichever party, will be forced to cut public expenditure due to unsustainable levels of borrowing.

Voluntary and community organisations need to be alert to this reality and be ready to cope with the fallout.  Demand for services will go up and yet resources will be squeezed on all fronts.  This will be the most difficult situation for many in a generation. Many organisations will suffer real funding shortages and will have to react quickly.  Those who cope best will review everything they do, they will think innovatively and they will change accordingly and those who don't may find they simply become extinct. 

Income for many organisations has already dropped but there is little doubt that the recession begins in earnest for our sector in this financial year and 2010/11 will become even more difficult.

Making the best use of available resources is always important but it becomes even more important in hard times. Looking after number one will not be the answer either but those who seek out collaboration opportunities and maybe pool their resources are more likely to do better. 

Voluntary and community organisations also need to think about what they have to offer in public service delivery.  Those organisations that are 'worth their salt' have an opportunity now to demonstrate that they can be part of the solution.

Where do you want your organisation to be?