Turning The Tide: Opportunities For Public-Sector Organisations In An Economic Downturn

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Turning The Tide: Opportunities For Public-Sector Organisations In An Economic Downturn

FOREWORD

The crisis across financial markets, a downturn in the property

sector, and energy and commodities price volatility made 2008 a

challenging year. Across the United Kingdom's economy, citizens

and businesses are now preparing for a difficult and uncertain

period.

This may lead to fresh discussions about the role of

'big' government, as the State reviews its responsibilities

as a commissioner and a direct service provider. With a likely

squeeze on public expenditure, however, government will not be able

to 'do' everything. Public-sector leaders will need to find

ways to manage these challenges effectively.

The Government's decision to invest in British banks and

bring forward a £3 billion package of measures to improve

consumer and business confidence have been analysed extensively.

The purpose of this report is not to add to that commentary, but to

signpost the likely impact of an economic downturn on the

'business of government' and how government

organisations1 must respond to the changing climate.

Macroeconomic intervention from the top of government is important,

but equally significant will be the ability of the wider public

sector to assess the financial health of its capital programmes,

its critical suppliers and itself.

Beyond these immediate requirements, however, the downturn also

crystallises two broader challenges. First, public-sector

organisations need to consider how to manage their businesses in an

environment that introduces new tensions between the layers of

government as well as between the public sector and its private

partners.

Second, changing policy requirements and citizen behaviour may

drive demand for new capabilities, and shape the need for

innovation and restructuring in order to meet new priorities.

This report, produced by Deloitte in consultation with its

public-sector clients, sets out a series of measures public

organisations could take to drive these tactical and strategic

changes. While economic change represents a t...

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