Public sector 'needs to make changes'

The UK's public sector must make changes to the way in which they operate, KPMG has said.

A poll by the professional services firm found that just 15 per cent of public sector organisations in Britain, including those with staff doing marketing jobs, are planning to transform next year's corporate strategy.

This compares to 60 per cent of those in Australia and 70 per cent in the US.

In addition, the study revealed that just over a third of UK organisations (35 per cent) intend to make changes to their long-term plans - in the US, this proportion is double (70 per cent).

Alan Downey, head of public sector at KPMG, said that there is "complacency" in Britain and that the results of the study "are even more shocking because the financial problems in the UK are predicted to be much more severe than in some of the other countries surveyed".

He added: "The UK public sector is now faced with an important choice. Plan now for major changes and cost savings, in order to protect the quality of essential public services or risk drifting unprepared into the looming public sector recession, which will lead to arbitrary cuts in services."

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