Executive summary
With one year remaining until the last date for a general
election, the United Kingdom continues to face significant
uncertainty across its economy. So far, targeted fiscal stimulus
and continued spending have shielded public finances from
corresponding pressure. But the public debt that has funded this
investment has reached startling levels, and while actual cuts to
services are unlikely before the election, what follows may include
a sustained period of austerity in public spending. The challenge
of reducing costs is made more complex by the impact that ten years
of high levels of investment in public services has had on citizen
expectations.
Despite political difficulties however, this challenge must be
confronted. Beyond 2010 government professionals will face choices
over resource allocation, headcount, capital programmes and the
need to align their service delivery planning more closely to their
minimum statutory commitments. The long-term
