Austerity cuts will open doors for the smartest businesses.

30 March 2011

The dust has settled on a weekend of high jinks in the capital, where 250,000 citizens marched in protest at impending cuts, only to have their point scuppered by 200 morons who vandalised their way to a six figure public sector bill to clean up the mess they’d made.

No doubt the police costs for Will and Kate’s wedding will multiply at the behest of the witless few, and to top it all, Fortnum and Mason was attacked. I ask you.
People are worried by what the cuts will actually mean. And Manchester City Council has helped by confirming that 2,000 jobs will go and leisure centres, libraries and public toilets will close as part of the plan to save £110m next year.
So it seems that the Five a Day Managers, the Anti – Smoking Think Tanks, and the Urban Fox Welfare Departments are safe, for the time being. I hope I’m wrong, but I’m not entirely sure that I’d be surprised if some hack unearthed a story that a council had paid £100k in consultancy fees to come up with a cost savings plan!
Anyhow – what does it all mean for business? Most people accept that too much has been done by the public sector, so there must be opportunity there for private sector providers who can give value and efficiency. The private sector puts a huge value on public sector work because it gives certainty. But pricing for public sector has already become a lot tighter. There will be some cut throat pricing and the private sector will have to be sharper in the way it delivers.
Small businesses have long complained that public sector tenders are too large for them to win. But cuts in the public sector will reduce their requirements down to a more manageable size and bring the smaller players into the game. Those of us who have dismissed tendering for public sector work should surely think again.

And, who knows, there might just be an opportunity for street cleaners and security firms on and around the 29th April.

Posted  30 March 2011


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