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Cut public sector HR "waste and duplication" immediately, says CBI

The CBI has called for public sector organisations to share "support services such as payroll and human resources functions" (external website) as an immediate priority to help cut "waste and duplication".
These are among the recommendations set out by the CBI in a new report published today (Wednesday 19 May 2010), which details its priorities for the new Conservative-Liberal Democrat coalition Government (PDF format, 557.1K) (external website).
Personnel Today provides detailed guidance on the proposed measures listed in the report, which also include calls for a public sector pay freeze and measures to drive private sector growth and job creation.
Next Monday (24 May 2010), Chancellor George Osborne will announce the coalition Government's savings plan. This will set out in detail the £6 billion public spending cuts to be enacted by April 2011, which were promised in the coalition agreement published last week.
Further details of Osborne's economic policies will follow in the emergency Budget, which will be held one month later (Tuesday 22 June 2010).
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Comments (4)

Mags:

CBI seem to be unaware that many public sector organisations have already moved to shared services and made large reductions in HR staffing. I have worked in some that are actually way ahead of the private sector in centralising transactional HR functions.

I note with some irony that one of the first things the new Gov has done is to create yet another body to look at ways of increasing efficiency and reducing spend.

Michael Carty Author Profile Page:

Thank you very much for your comment, Mags.

The relationship between the coalition Government and public sector employers certainly looks set to be an "interesting" one. As my colleague Sarah Welfare wrote yesterday, the full coalition agreement appears to suggest that the new administration is gearing up for a fight with public sector unions.

And as I noted earlier this week, it is perhaps ironic that responsibility for enacting the post-election public spending cuts (the first £6 billion of which will be detailed by Chancellor George Osborne next Monday (24 May 2010)) will inevitably fall to public sector HR departments, which Cameron dismissed as "form-fillers" during the general election campaign.

Kind regards

Michael

Brian:

I agree with the comments of the CBI above on avoiding duplication, however why not take this further.

County councils and local councils duplicate services provided by other organisations. Is it not feasible that Councils are governed by statutory powers on those services they can provide. I have listed only a few services below as an example:

Responsibilities:

Councils collect rubbish
Maintain and allocate social housing
Libraries
Street Cleaning

Not responsible for:

Anti smoking
Anti obesity
Road safety and camera partnerships
Schools
Acting as property developers


I believe this type of reform would make local government more efficient and reduce the need for Chief Executives and councillors rewards being on a level that private sector workers can only dream off.

Michael Carty Author Profile Page:

Thank you very much indeed for taking the time to comment, Brian.

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