Public sector faces leadership challenge as budget cuts bite

Public-sector leadership needs a boost in capability if it is to manage a workforce demoralised by budget cuts, HR leaders have said.

The government’s emergency budget last week announced a pay freeze for all public-sector workers earning over £21,000, a review into public-sector pensions and the news that Whitehall departments will have to find savings of £61 billion by 2014-15 – an average 25 per cent cut in spending.
 

It’s untenable to have a normal retirement age in public-sector schemes that is significantly different from the state retirement age

Brian Bailey, Director of pensions, West Midlands Pension Fund and member of High Pay Commission