Headlines: January 3rd, 2007



A survey by the Chartered Management Institute shows that 54 per cent of senior executives in the local government sector are confident about the year ahead. Asked specifically about prospects for their organisation over the next twelve months, almost half gave an upbeat forecast. The extreme views were given by 11 per cent who claimed they are ‘very optimistic’ and 6 per cent who admitted to being nervous about 2007.

The survey reveals some concerns over rising costs, with almost half those in local government predicting further increases in business taxation. The sector’s managers also fear increasing inflation and interest rates. More than 8 in 10 also believe rising interest rates will affect performance and 2 in 3 expressed concern about inflation.

Looking at the likely economic performance in their areas, managers in local government are predicting that employment will remain at current levels, with 49 per cent in the sector suggesting there will be ‘no significant change’. Respondents in Wales expressed confidence that new jobs will be created, with 35 per cent indicating the belief that job opportunities will increase during the next 12 months.

The personal predictions of managers for the year ahead sounded warnings for councils. One quarter or respondents said they planned to change jobs in the next twelve months. This is more than double the national labour turnover figure of 12 per cent for 2006, reported in the National Management Salary Survey published by the Institute.

Personal development is high on the agenda of many managers with almost one third intending to undertake training courses and further education during the New Year. An additional 15 per cent also intend to learn a new language.