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The State of the State 2012

Government reform in Britain analysed


State of the State 2012: Analysis of government reformThe UK government employs five million people across 1500 organisations. Despite the current need to re-balance the economy and cut borrowing the Institute for Fiscal Studies estimates that, at the midpoint of the first Cameron government, the overwhelming majority of the welfare cuts and spending reductions required are still to be achieved.

This report, by the UK member firm of Deloitte in conjunction with policy institute Reform, provides fresh analysis of the near, medium and long-term challenges for the government as it undergoes and undertakes change. There are three parts to the Report’s review:

  • Part 1: Financial fundamentals
  • Part 2: Progress in welfare, health, education and defence
  • Part 3: Assessment of the major reforms set out in the Open Public Services white paper.

In addition to the five indicators which the UK government has outlined to measure progress in key areas  the Report puts forward an additional five indicators focussed on the significant savings achieveable through better financial management:

  • Save cash lost through fraud
  • Manage cash more effectively
  • Target net liabilities
  • Support an economy-wide focus on productivity
  • Drive localism through council financing.

The report’s conclusion: With the overarching picture in 2012 being of a government undergoing complex change the biggest risk is that across the public bodies involved the right skills and capabilities may not be in place to execute such a significant – and essential – change program in the context of the need to work hand in hand with business to reinvigorate the economy.

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