Public sector must do more to boost productivity

With the UK only half way through Westminster’s deficit reduction plan, the public sector must do more to increase productivity, according to Deloitte.

Angela Mitchell, head of local public services at the business advisory firm, said managing intangible assets like reputation and brand could help the public sector cope with the stresses of austerity.

Releasing Deloitte’s State of the State report, which examines public sector finances, she said: “If the public sector is to address its future challenges, it will need to maintain and increase engagement of existing staff, and continue to attract and retain top talent.  By exploiting its brand more effectively, we believe that it could appeal more to people with the ideas, skills, and experiences required.”

Deloitte conducted interviews with a range of public sector executives, finding that in the face of spending cuts, many were concerned by “risk, uncertainty and the prospect of organisational and service failure in the years ahead.”

The report found productivity in the UK is weaker than most advanced economies and that boosting productivity through more effective management of talent will be key to coping with budgetary challenges.

The UK spends £1bn each week servicing interest on debt, the same amount it spends on education and more than the total spent on public services in Wales and Northern Ireland combined.

Mitchell said: “Despite facing a myriad of challenges, many of them financial, the public sector remains an attractive career prospect for many people, particularly in Scotland. After all, it encompasses a number of services which protect the public, improve people’s wellbeing, and in many cases literally saves lives.

“There are very few sectors out there which can match that impact. It may be an intangible quality, but it’s one of incredible potency.  For many people, the opportunity to make a real difference will be a bigger driver than other forms of reward.

“Equally, more collaboration between different government bodies, and more flexibility in moving between central government, local public sector organisations, and arm’s length bodies could help attract professionals looking for a broader playing field and diversity in their careers.”