Umbrella company contractors working in the public sector can take comfort from recent comments made by Sir Peter Gershon. Gershon has already published a review into public sector efficiency in the UK and he was a special adviser to the Tories during the run up to the recent election.
He was answering questions at the REC’s public sector summit and he expressed the view that he did not believe it was conceivable for all public sector temporary workers to disappear overnight.
Some parts of the public sector, such as front-line services, rely heavily on freelancers and temporary workers. On the other hand, temporary secretaries in Whitehall, could find that their roles disappearing reasonably quickly.
He also added that the £6.2bn public sector spending cuts that have already been announced should not lead to a spate of widespread job losses. Recruitment however has been frozen, as has the use of agency staff. Further cuts are expected when George Osborne delivers his emergency budget later this month.
More than 170 delegates attended the REC’s Public Sector resourcing Summit on Tuesday. Members, employers and HR professionals heard experts explaining how the government’s planned financial restraint programmes will impact the recruitment industry.
They also looked at ways to maximise opportunities between recruitment companies and the public sector over the coming five years.
During Gershon’s keynote speech, in which he emphasised that the national debt currently stands at £772 billion, he warned that tough challenges lay ahead and we should expect to see cuts of up to 20% in certain public sector areas.
He said the government should take a more holistic approach to procurement and make more use of both the private and third party sectors.
Other speakers also agreed with his views saying that the emphasis should be on adding value rather than volume to the public sector.
In his summing up speech, the REC’s Chief Executive, Kevin Green, said that this was a once in a lifetime opportunity to radically reform the UK public sector. This will need strong leaders and new talent. Flexibility within the workforce will also be crucial, he added.
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