By Mike Sherratt The line between the financial management processes in the public sector and commercial businesses is beginning to blur. Activity based costing, which has been used by businesses for almost two decades, is now being developed in the public sector as a driver for service improvements . The author explains what it is and how it is being applied in the quest for Best Value.

The latest National Computing Centre Survey of IT Staffing shows a growing demand for IT staff in public services and predicts recruitment and retention problems . Almost 30% of public organizations surveyed reported increased demand for IT staff over the next two years. The highest level of growth, at 18 %, was in health and education, while for local and central government the figure was just under 7%. 

Awarding star ratings to social services departments of local councils is starting to drive up performance. Since the stars were first awarded in May this year there have been twelve improvements and six reductions. This has increased the number of three star councils by three and two star councils by two.