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Public sector finance not sustainable, according to the ACCA

Whilst public sector bodies are meeting the challenge set by the Government’s austerity measures, many of their tactics are not suited for the long haul, according to research conducted by the ACCA.

The report, which is titled ‘The Importance of Strategic Financial Leadership in the UK Public Sector in a Time of Financial Austerity’, suggests that authorities are answering funding reductions without significantly affecting service standards.

However, it was also found that private sector bodies, such as ambulance, fire and police services; hospitals and health authorities; and local councils, need to invest more effort in ensuring that decision-makers understand the financial benefits and costs of particular routes.

Professor Malcolm Prowle from the Nottingham Business School team which worked with the ACCA on the study, said:

“Working at multi-agency level has a vital role to play in achieving sustainable and long-term value for money and finance leaders need to have the strategic ability and vision to drive change in the right direction, seeing beyond political obstacles and short-term difficulties.”

The report indicated that senior officials from the council need to implement the kind of corporate culture whereby public employee value is acknowledged as it is with the pursuit of shareholder value in private corporations.

Prowle said that managers should consider the most valuable aspect of their service and how their offerings can be improved by effective management.
While the news may not directly affect the work of all accountants in Eastham, businesses should be able to benefit from such a public wake-up call.

Posted by Louise
October 30, 2013
Research & Statistics

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