Karl Eddy, Head of Government and Infrastructure Advisory at
Grant Thornton UK LLP comments on the impact of the Budget
announcement on the public sector:
"Today's announcement highlighted what was already well
anticipated - cuts and tough times ahead for the public
sector. Whilst many may argue that cuts in public sector pay and
pensions should mirror what has already happened in the private
sector, the reality of implementing such plans might be a lot
harder than anticipated, with many in the sector likely to resist
radical changes.
"It is not only public sector organisations
and jobs that will be impacted by today's plans. A huge number of
contracts that are outsourced to private companies, including in
defence, training, IT, healthcare, property, waste management
and construction will also bear the brunt of the Government's plans
to tackle Britain's deficit.
"More detail will be revealed on where these
cuts and efficiency savings will be made in the Comprehensive
Spending Review in October, but at this point, public sector
organisations will do well to continue making plans to reduce
spending, an action they've been anticipating well before today's
Budget."
"While the impact will fall on both the public
and private sectors, opportunities have also been created.
Better procurement in the public sector will sharpen the
commerciality of transactions and service agreements. In addition,
new partnering opportunities will emerge and those most adept at
adjusting to new arrangements will benefit albeit in the medium
term. On a positive front, the Chancellor announced his commitment
to the importance of infrastructure with no further cuts to capital
expenditure."
ENDS
For further information please
contact:
Nicola Daley at Grant Thornton press office on 020 7728
2244 or Nicola.daley@gtuk.com
Notes to Editors:
Live Webinar
We will be running a live interactive internet
seminar (webinar) at 4.00pm on June 24, with a panel of experts who
will be commenting on what the announcement means for the UK
economy, taxes and the public sector. Viewers will be able to email
questions in to the live discussion.
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