Synergy Group Budget
Keiran Ryan Synergy Group Budget Comment
How the Emergency Budget Report and the next wave of budget cuts will affect public sector employment! Report and how the next wave of budget cuts will affect public sector employment. As expected, the Chancellor confirmed in the 2010 Emergency Budget Report that public sector pay will be frozen for the next two years for anyone on over 21,000 per annum, and that 11bn will have to be saved from welfare reforms. Although the Chancellor has stated that the budgets for each public sector department will not be revealed until autumn 2010, todays announcement will undoubtedly result in a hold on recruitment for many public sector departments that do not provide front line services.
In contrast, it is likely that council services which are proven revenue sources for local authorities, such as revenues and benefits, parking services and traffic management, will see an increased level of investment and expansion as councils look to recoup the funds they are set to lose from todays Budget Report. At The Synergy Group, we have seen many local authorities increasing recruitment drives in these departments during the last year especially for entry level staff - and expect this trend to continue following todays Budget announcement. Interestingly, the Chancellor also confirmed that measures will be put in place to slash the 180bn-a-year welfare bill which will see drastic changes for those who are entitled to benefits and how they will be paid especially in social housing. In light of this, training is set to become a priority for many local authorities, particularly within revenues and benefits and housing departments, as they look to retrain staff to manage the changes in legislation which are expected to start in April 2011.