The next tough spending round could unleash pent-up public sector reform says a consultants' report into the efficiency challenge. In its report Counting the cost, Deloitte says the recession will not fully impact on the public sector until 2011 but warns preparations to meet it must start now: It adds: ‘One paradox of public services is that productivity can fall even as greater resources are invested. 'The converse, that productivity and efficiency improve as budgets contract, may act as a catalyst for reform. 'Public-sector operating cultures may need the burning platform environment to implement change.' The report says councils should achieve savings through better asset management, reducing headcount, optimising tax arrangements and better joint working, adding: ‘For the next Government a slash and burn approach to frontline public services will be unappealing.' Deloitte's head of public sector practice, Mike Turley, said: ‘The public sector will be the last sector into the recession and the last one out.'
