Spring Budget 2024: time for action on public sector productivity, says PwC

Rachel Taylor, government and health industries leader at PwC, said:

“The public sector productivity challenge is nothing new, and whilst the Chancellor’s commitment to a productivity plan for the NHS is a step in the right direction, given the significant financial stress on central and local government, it’s time for action beyond pilots. 

“The Government has its sights on ways to increase output growth across public services by at least 0.5 percentage points a year. But this prize could be much greater if we incentivise local public services to deliver better outcomes by allowing them to reinvest any financial savings in their areas. 

“We must remain mindful that public sector productivity is not only about outputs but also outcomes for citizens and purposefully solving the major societal problems facing the UK. 

“Public sector productivity is not just about getting the workforce to work harder - we know many on the frontline of public services are at capacity due to growing demand in services from the NHS to housing and support services. The Chancellor is grappling with key levers, including digital interventions such as the use of AI and digital technologies. Technology provides both opportunity and potential risks, so how we shift the public sector to a place of embracing innovation whilst managing challenges is critical. Investment in digital and data literacy in the public sector workforce would enhance the UK’s standing  in technology and allow it to glean better data-led insights to develop and deliver more effective policy.”