The UK is half-way through a radical fiscal consolidation that will have a profound impact on public services – and the toughest decisions are yet to come. But the UK’s public sector is a world leader in reform, and governments around the world are watching as it seeks to carve out a more affordable model for the modern state.
This year's report finds:
Some 80 per cent of the Coalition’s deficit reduction plan involves public spending cuts. The plan is broadly on track, but the second half of the cuts, to come in the 2015 Spending Round, will be much harder to deliver and will have profound implications for many public bodies.
Eliminating the deficit – public sector borrowing:
Our interviews with senior executives in local public services reveal pride at how the cuts have been managed so far. But many speak of risk and the prospect of organisational and service failure in the years ahead.
Our State of the State 2014-15 report highlights the challenges the Government faces if it is to complete the deficit reduction plan successfully. We recommend three strategic lenses through which the next Government needs to focus its programme.
The State of the State 2014-15 proposes that the next Government needs to focus is programme through three strategic lenses:
“The UK is half way through a far-reaching fiscal consolidation programme that is reducing the size of the state.
“The public sector reform required to achieve the second half looks set to alter the way that many public bodies operate. And the Scottish Referendum has triggered a fundamental rethink of how power is devolved across the UK. In the next five years, the UK and its public sector will change profoundly.
“Governments around the world are watching ours to learn lessons.”
Mike Turley, Public Sector Leader, Deloitte
About The State of the State report series
Now in its third year, our annual State of the State report aims to provide an independent and accessible view of the UK public sector.
Deloitte and Reform have gathered and analysed material from public sources – including the government’s accounts, public spending data, the Budget, the Autumn Statement and official economic forecasts – into a single snapshot. We augment that data with insight from roundtable discussions and interviews with executives from across the public services.
Our aim is to create a report that helps facilitate a more informed and constructive debate on the operation of the UK state.