Look at long-term picture when cutting costs, States are warned

Comptroller and Auditor General Karen McConnell also said that although austerity had been a huge driver for change in the public sector, those managing the services have a duty to secure value for money, regardless of the state of public finances.

‘In the UK, austerity has led to larger and larger slices of money being cut from budgets, leading to painful choices,’ Ms McConnell told the Institute of Directors at a lunch held at the Grand Hotel.

Ms McConnell said that it was also vital for all staff, not just finance staff, to be aware of costs and risks and to respond to them appropriately.

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