The State of the State 2016-17Read the full report
The State of the State report provides a unique, independent analysis of the UK public sector through a business lens. Produced by Deloitte UK in collaboration with Reform, the insight is informed by interviews with public sector leaders, citizen research and an in-depth analysis of government data.
The citizen and the state survey
A survey of 1,000 people found seven key findings including:
- 41% of citizens expect public services to worsen because of Brexit
- Public support for taxes to fund public spending is on the rise, for the first time since the 1990's
- 57% feel that the NHS is the top priority, compared with Brexit at 33
- A digital divide exists amongst citizens by age and social class
In the words of public sector leaders
Public sector leaders say:
- Brexit will impact on funding, the workforce, priorities and local economies
- Digital transformation is struggling to meet the ambition
- Collaboration and workforce flexibility are key characteristics of the future public sector
- Leadership will be challenged to become more effective, high profile, diverse and continually renewed
Government through business lenses
Government is not a business. But applying ‘business lenses’ to the public sector can allow for distinctive perspectives and fresh thinking.
The productivity lens: Ten elements of public sector productivity are exposed to Brexit including public spending levels, Whitehall’s capacity and capability, workforce arrangements and research funding in higher education
The talent lens: automation is set to save the government £17bn by 2030 and will drive the use of data to support decision makers
The balance sheet lens: The UK Government’s latest balance sheet shows £1.46 trillion of assets and liabilities of £3.56 trillion. The state’s net liability rose by £263 billion to reach £2.1 trillion at last count for the 2014-15 financial year
The state of the public finances Four questions arise from Brexit as the Government considers its fiscal options:
- Will the mandate or the objective change?
- Will infrastructure spending replace austerity as the dominant fiscal theme?
- Will Brexit compromise or support public sector transformation?
- Will the Government continue to run a deficit and increase its debt?