Public figures, journalists, politicians and commentators often present false polar choices to the general public over policy; it helps to create a sense of tension and an imperative for their version of change.
Those of us who have worked in public services know that policy change is often more measured. Rather than the old cliché of ‘reform or revolution' the policies we are subject to undergo a steady evolution, slowly changing the value and impact of public services provided, shifting incrementally to meet the desires of Government, the demands of the public and the experience of delivery.
It is therefore with some caution that I propose that over the past few years we have indeed seen a fundamental shift in the way in which local government, and the public sector more broadly, operates.
For once we are right to be talking about a revolution as the old paradigms shift under the Government's programme of deficit reduction to a point where fiscal austerity is in fact the new normal for certain types of local authority and many other public services. There are two distinct responses.
Firstly, though it may seem counter intuitive, those of us who work in or alongside the public sector need to move beyond a continued focus on austerity and the tough future that we all face. While this is an accurate narrative it does not provide the practical or intellectual solutions and tools needed to survive in our new environment.
So secondly while addressing our future rather than dwelling on our past we should not pretend that the solutions that have been introduced so far will definitely work.
For example, the government has introduced half a dozen reforms, such as the freeze grant, the new homes bonus, referenda capping and the pensions triple lock that are badly crafted and fiscally unsustainable.
These policies have deferred problems to the next government, not offered long-term solutions. Similarly professionals hold that some reforms such as business rates and bedroom tax, even if fiscally sustainable, are increasingly administrative suspect once implemented.
In short the harsh reality is, that while many councils will survive, some councils will run out of cash and the system will be seen to be broken; while some other areas of public spending will remain relatively feather nested.
We are only around half of the way through the government's planned deficit reduction plan with material pressures building up in health that will cause much political stress. And every interest rates increase of 1% will add £8bn to HMT's debt management costs.
So sadly, for some unfavoured councils, I'm afraid things can only get worse!
But, for councils and other public services that can pull through and truly transform, what is needed? Our annual conference this year will focus on three key issues which organisations need to tackle to succeed in the new normal: the current and emerging risks faced; our resilience to the challenges that these risks present; and what reforms and changes are needed to make to ensure that we can succeed.
The range of risks we face are increasing. Whether social and demographic changes, growing demand, a widening disparity in earnings, growing susceptibility to cyber-crime and fraud, or service continuity in a commissioning led environment we must learn from what works to manage and mitigate these and other risks.
These known or anticipated risks can only be dealt with if public service leaders, governance structures and organisations develop resilience. And true resilience is a dynamic process that allows organisations to deal with adversity, shock or trauma and adapt their behaviour; learning from that experience of adversity how to function better in the future.
The third factor is reform. While we have experienced rapid change in the past few years, we know that public services will have to undergo a far more fundamental redesign to meet the needs of society in 10, 20 or even 50 years' time. It is abundantly clear that the structure, delivery mechanisms, funding, and the very nature of the relationship between citizen and state, are all in need of reform.
At our conference we will be joined by thinkers and leaders from across public services, politics, journalism, business and academia, who I know will challenge, inform and inspire us.
I want to encourage you to get involved in the conversations that are taking place and help start to shape and guide the direction of public financial management. We aim to challenge badly crafted policy, promote best practice and respond realistically and constructively to the reduced spending.
The outcome of these debates will affect the finance profession's ability to service the organisations we are all proud to serve. As the home of public finance, whether or not an accountant or whether or not a member, CIPFA will welcome your input.
Rob Whiteman is chief executive of the Chartered Institute for Public Finance and Accountancy
