Public Sector

Central Government

Deals Activity: Very Low

Restructuring Activity: High

In the current inflationary environment, the drive to transform public sector delivery takes on additional momentum.

Restructuring activity in Central Government

Central Government

Operating expenditure across government departments will continue to be robustly challenged by the Treasury. Expectations for cross department collaboration to drive efficiencies will also be heightened. The Government Property Agency (GPA) will continue to take over management and ownership of department properties, both freehold and leasehold, encouraging economies of scale to be leveraged. We expect continued pressure from the Treasury for departments to sell off non-core properties and shift footprints away from the South East towards levelling-up target areas.

Capital expenditure, in particular spending to support the levelling-up agenda, will remain a core part of the UK recovery. Several large-scale infrastructure programmes are either under consideration or development. All of which 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.

The Treasury has made clear intentions to recalibrate public spending during a period of severe economic uncertainty. Securing investment will require an excellent business case presenting a cohesive strategic narrative aligned to broader government objectives. It needs to be underpinned by robust financial and economic options analysis with a compelling case for change, demonstrating 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 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, and 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