04/11/2024 | News release | Distributed by Public on 04/11/2024 07:52
He highlights the issues the public sector faces, its 'productivity problem', and areas where refocus and investment could deliver the improved operational efficiency the public sector needs.
Keep reading to get the highlights from Gareth Davies' speech to parliament and learn more about the problems and potential solutions for public sector organizations.
The current issues facing the Public Sector
Gareth Davies paints a clear picture of the challenges facing the public sector that can broadly be split into two categories: general economic and social issues that must be navigated, and the consequences of historic operational inefficiencies in the public sector that require intervention.
In the first case - "spending and borrowing forecasts supporting November's Autumn Statement show that government of whatever complexion faces a tough challenge in the years ahead" - the issues include:
In the second case, Davies points to poor investment in operational efficiency in past years that has caused its own problems:
Davies recognizes that it is unrealistic for public sector leaders to focus on "potential policy measures on tax and spending" but argues that "there is good evidence from the NAO's work to believe that government can achieve more with what it already spends."
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The productivity problem
It's clear that recent disruptions have led to a particularly poor economic outlook for the public sector and a lack of investment in operations and modern systems have, as Davies points out, "combined to leave public services with a productivity problem" and highlights "the false economy of allowing maintenance backlogs to build up."
Yet, Davies believes "there is good evidence from the NAO's work to believe that government can achieve more with what it already spends" and points out some areas of opportunity for the public sector where "potential financial benefit is far from being realized."