Three-quarters (74%) of public sector leaders believe their workforce's morale will suffer, due to an additional workload following further cuts throughout 2012, a survey by management consultants Hay Group has found.

A Hay Group poll of 175 public organisations, including 58 local government bodies, also reveals that 62% of public leaders are seeking to reduce their pay bill this year, while 62% are planning a new round of redundancies. More than 40% of respondents also plan to freeze recruitment.