The Comprehensive Spending Review announced last week provided mixed news for Zurich Municipal’s customers. The Government’s biggest cuts were reserved for local government (alongside the home office and justice).
Rob Allison, Managing Director, Zurich Municipal says: “The severity of the cuts was 'trumpeted' well in advance, so they brought no surprises in their magnitude. Our customers in the public sector have been preparing the way by implementing a number of changes. We now expect to see this activity intensified.
“I have no doubt that public bodies will ensure their actions are well-planned. Zurich would encourage organisations to take a long-term view about the risks they are facing and how they will manage them. There is no one panacea for the challenges; whether they relate to staff numbers, delivering through partnerships, re-visiting contracts or the many other aspects under consideration and review.
“At Zurich Municipal our risk management capabilities are wide-ranging, encompassing as they do all areas of the public sector. We look forward to working with our customers to assist them to address the current and emerging risks consequent upon the actions they take following the spending review.”
Local Authorities
The Chancellor announced that council budgets will be cut by 7.1% in real terms leading to fewer discretionary services (from leisure services to libraries) and increased pressure on statutory services. However funding will be made available in all four years of the Spending Review to enable local authorities to freeze council tax in 2011-12. In addition, the Government will devolve significant financial control to local authorities.
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