The budget of 22nd June will be reverberating around all organisations involved in public service this summer as we all try to come to grips with what it will mean to us. It is unlikely to become clear until the Spending Review in autumn how things are likely to pan out over the next few years but there are a few things that we can do now to prepare for the inevitable.

For a start: the likelihood is that there will be no significant growth of any kind for the next few years. This means that, if your strategy is based on growth, you will need to adjust it. That does not necessarily mean that growth will be impossible for any one organisation but that organic growth by selling new services is unlikely. The tactics for growth will need to depend more on things like acquisitions or expertise in winning tenders from other providers.

Secondly, and especially for statutory agencies, any investment that can be made in increasing productivity through technology is worth considering. This need not be a major IT projects. Small actions like providing staff with smart phones can increase speed of response and the ability to direct action. If the future is to be about doing more with less, then technological solutions are going to be key.

Lastly: don’t make radical changes on the basis of anything but solid predictions. The prediction that Capital Gains Tax would increase to 40% caused some people to dump assets only to discover that the prediction was wrong on budget day. Having contingencies is a great approach; understanding the potential changes is essential. Taking action when insufficient facts are in is always a gamble.

When change is imminent a dispassionate view of what options you have in response can be very useful. If you would like to discuss this please don’t hesitate to give me a call.

Bill can be contacted by emailing bill@puddicombe.net - click here
or by phone on +44 (0)7743 822634