Public sector facing "unprecedented funding squeeze"

The unprecedented funding squeeze facing public sector executives have been highlighted in a landmark report.

The Chartered Institute of Public Finance and Accountancy alongside the Society of Local Authority Chief Executives and Senior Managers (Solace) have published a report suggesting that a "radical approach" is required to combat the spending cuts due in the next couple of years.

The proposals offered by the report include a review of leadership structures to enable front-line staff members to make more decisions without executive supervision and a variety of new funding models, Local Government Chronicle reported.

Mike Bennett, director-general of Solace, believes that the paper outlines the severity of the situation facing the public sector.

He told the website: "Greater efficiency alone will not be enough. There needs to be some kind of new deal for public services."

Last month, Stephen Hughes, chief executive of Birmingham Council, claimed that there is an "appetite" for radical change among public sector executives to reform local services.