Moderate

Central Government

There is a continued drive to transform public sector delivery throughout 2021 to optimise outcomes whilst evidencing robust value for money.

Sector trends & challenges

  • Scrutiny on public spending

    There will be renewed scrutiny on business cases across the sector, with new programmes needing to demonstrate compelling business cases and taxpayer value. Existing budgets are also likely to come under increasing pressure.

  • Operating efficiencies and new ways of working

    The Civil Service will continue to seek its own operational efficiencies, including locational efficiencies from real estate and people relocations, digital enabled transformation to deliver more on-line ways of working.

  • Implementation excellence

    Transformation programmes will come under increased scrutiny to deliver tangible results and avoid typical project slippage. Intelligent client and implementation capability will be at the heart of successful outcomes delivery.

Sector rating profile

Central Government

COVID-19 has resulted in an unparalleled increase in peacetime government spending. As a result there will be a contrast between economic stimulus measures in some areas and increased scrutiny of capital projects and drive for savings and efficiencies in business as usual expenditure.

Government departments’ operating expenditure will continue to be robustly challenged by Treasury and there will be heightened expectations of cross department collaboration to drive efficiencies. The Government Property Agency (GPA) will continue to take over management and ownership of government department properties both freehold and leasehold, encouraging departments to leverage estates economies of scale through use of the GPA’s hubs. Treasury will expect departments’ non core properties to be exited and will want to see a shift in departments’ property footprint away from the south east and towards levelling up target areas.

Capital expenditure, in particular spend supporting the levelling up agenda, will remain a key part of the UK recovery. A number of large-scale infrastructure programmes are either under consideration or development, all of which will require careful and ongoing support to make tough choices, keep complex programmes on track and deliver high quality outcomes and value for money.

Government intervention in stressed and distressed sectors is likely to remain a feature of the economic landscape to protect outcomes – including insourcing and re-procurement programmes.

As we exit the COVID-19 pandemic Treasury will seek to recalibrate public spending. Securing government investment will require an excellent business case presenting a cohesive strategic narrative aligned to broader government objectives underpinned by robust financial and economic options analysis with a compelling case for change which demonstrates delivery of net social value. Project leadership and grip & control must be robust and clearly evidenced by best in class project management and governance.

Through this unprecedented time of uncertainty we support our clients by leveraging our depth of Business Case and Spending Review experience. We implement a rigorous approach to ensure our clients’ business cases are compelling and cohesive, delivered on time with support of key stakeholders.

Defra Spending Review - Estates Strategy and Business Cases

Interpath has supported Defra Group Property (DgP) since 2018 developing a robust estates strategy, leading the DgP’s spending review submission. Interpath worked with management to produce robust, evidence backed, multi-billion pound Green Book compliant business cases and Spending Review bids for submission to and approval by HM Treasury – recently including c£200m investment justified and negotiated with HM Treasury.*

 

Probation service in-housing

Interpath worked with the organisation in developing a robust plan to bring in-house part of the probation services whilst running a procurement for second-generation contracts for the remaining services. We supported management developing a successful transition strategy for the separation and integration of CRC services into HMPPS.*

*Some of the case studies referenced were performed by Interpath team members as part of a multi-disciplinary engagement team whilst part of KPMG LLP. Interpath Advisory, formerly KPMG UK’s restructuring and turnaround practice, launched as an independent business on 4 May 2021. Click here for more information.

Find Your Expert

Craig Masters is Interpath Sector Lead for Central Government. Craig is supported in his Central Government activities by Gareth Williams and Blair Nimmo. For a full list of our senior people with experience in this sector use the button below.

Our senior team