'A Time for Change...'

June 30 2010

The last in the current series of evening meetings organised in co-operation with PricewaterhouseCoopers (PwC). While each event and topic for discussion has been free standing, the six meetings were linked to create an evolving discussion about the way ahead for the public sector in the context of developments in the wider economy since the banking crisis and, following it, the onset of recession, an explosion of public debt and the ensuing fiscal crisis.

In what has been described as a 'kill or cure' budget, the Chancellor in his June 2010 Budget Statement set out the Government's plan for fiscal rectitude: starting properly next year, four years of day-in day-out scaling back of government and huge, eye-watering cuts in public expenditure until 2014-15. While the full detail and implications would not be known (or fully appreciated) until October when the four-year spending review is due to be unveiled, the evening's discussions assumed that the main burden of cuts would fall on departments responsible for public services and that cuts in areas not protected would be likely to be of the order of 25% or more. While what happens in Northern Ireland is a matter for the Executive, it was assumed that the Northern Ireland would have to assume its share of the burden and that cuts facing programmes and agencies would be of this order.

There was little doubt then that the onset of a new era of government and a fundamental re-appraisal of the role and reach of the state was being contemplated -- a fundamental review of the role of government in society and how it can best fulfil that role.

There was also little doubt that the Executive's next programme for government could be a slimmed down version of what has gone before and, possibly, one with some large gaps. Some extremely difficult choices would have to be made and the outworking of whatever decisions were taken would be testing, both politically and administratively.

Discussions in this series have focused on differing aspects of the unfolding crisis and its implications. A number of commentaries have been published: "Let's not waste a good crisis", "Doing More with Less", "Doing Better with Less - Bridging the looming funding gap"; and another is [at time of writing] in preparation, "Hard Times - New Choices: Redefining public service delivery" So, with the finalisation of this in mind and the future of programmes and agencies in the balance the question debated at this evening session was: What should be in a programme for government and what coping strategies might be put in place to maintain services and otherwise look to ease the burden?

For more information contact Roger Bradley, (T) 02890 347400.