The Spending Review will cut council budgets by 28 % over the next four years resulting in significant job losses and a major rethink of how services are delivered. The Spending Review also lays the foundation for transformation of services when the pain of downsizing has subsided. The new concept of a community budget will be introduced in 2011 on a pilot basis. But transformational change based on the total place philosophy is many years down the track.

Read more on SPENDING REVIEW BRINGS FOUR YEARS OF DOWNSIZING BUT LAYS FOUNDATION FOR TRANSFORMATION…

A 28 per cent cut in council budgets over the next four years will have a severe impact on care services. In a move to improve efficiency to limit the harmful effect of the cut, the Spending Review has provided for £1b to be moved from the health capital to health revenue budget. It will be spent on measures that support social care, where there are also benefits to health.

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The Chartered Institute of Personnel and Development has warned that excellent people management will be crucial for public services to survive the cuts in the Spending Review.

The Institute believes that the unprecedented scale of change set out in the Spending Review cannot be delivered without a concerted and committed focus on supporting, bolstering and improving public sector management capability. This view is based on research showing that while the unions cannot rely on public sympathy to face down the Government’s cuts through sustained strike action, ministers cannot rely on limited enthusiasm for strikes to deliver their vision of reformed, streamlined and diversified public service delivery.

Read more on WARNING THAT PEOPLE MANAGEMENT CRUCIAL IN THE ERA OF CUTS…