As many of us suspected; the public sector is likely to suffer in the New Year, but it remains unclear exactly where the savings will be made.

The BBC reported yesterday that health and education have been protected; leaving likely cuts in defence, housing, transport and higher education.  The Institute for Fiscal Studies think tank they quoted is predicting severe cuts; the kind of which has not  been seen in Britain since the late 1970s.

As a country, we need to cut £36bn from public spending – if you operate in the public arena, or have customers that service the public sector, this will undoubtedly affect your business in the next year.  If you haven’t been preparing already, you need to look at extending your reach to other markets if you can.

With £15bn in savings still to be identified, we would recommend keeping a very close eye on the news to watch for clues as to where these might come from – and how they might affect you.  They’re likely to be cuts that won’t hurt votes too much – if you’re working in the public sector, you might have an idea as to where those cuts will be made.

Keep reading between the lines…