Gillian Fawcett, head of public sector, comments: 'There really isn’t sufficient time, with two years to the next election, to set out a new comprehensive spending review. But it looks as if the childcare vouchers announced ahead of the Budget will have to be paid for from somewhere - and it looks like the public sector may very well take the brunt.'
The Chancellor will also put a stop on ‘pay progression’ for the public sector, so the pay freeze at one per cent for another year to 2015-16 announced yesterday will risk causing further damage to staff morale in the sector.
A particular concern for ACCA is that parts of the public sector have yet to implement half of the spending cuts announced in 2010.
Gillian Fawcett explains: 'Parts of the public sector backloaded the cuts to reduce the pain and impact. If you take local government as an example, with in excess of £147billion of spending, the sector was asked to achieve 26 per cent spending cuts – that’s £7.6billion - between April 2011-2015.
'It still needs to implement and find half of these savings. So far some authorities have been able to use reserves and others have cut services, but if further spending cuts are imposed on local government there is little doubt that there will be a severe financial impact on frontline services.'
ACCA believes that the UK public sector is an obvious target for the Coalition Government, yet for the public and most vulnerable in society it provides vital services of last resort such as adult social care.
Gillian Fawcett adds: 'Further spending cuts will have a detrimental impact on these services, as other areas for finding savings have just about dried up.'
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For more information, please contact:
Alana Sinnen, ACCA Newsroom
+ 44 (0) 207 059 5807
+44 (0) 7715 812120
Notes to Editors
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 154,000 members and 432,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,400 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.