CIPFA spotlight Why having

Seeing the bigger picture

Having a broad skillset is key to delivering successful policies despite soaring inflation, says Sarah Shreeves

We are currently living through the biggest squeeze in living standards in over 30 years. Inflation has now hit 9.1% and is predicted to continue its upward trajectory – perhaps even hitting 15%.

The rising cost in energy is a major driver – UK energy bills rose by more than 50% in April of this year. This is causing households across the country to have to make difficult decisions in order to make ends meet.

Inflation isn’t just a problem for the UK, of course. Globally, countries are feeling the pinch. While the war in Ukraine rumbles on, food and energy markets continue to be significantly affected.

Today’s public finance leaders will be taking the lead in finding solutions to these complex problems. They will be looking at how they can balance the books in an increasingly challenging environment, while still delivering essential public services.

Inflation will also affect government policies and programmes. The government’s flagship policy to level up the country will be put under considerable strain. As costs across the board rise, such as building materials, energy, maintenance and wages, investment in the parts of the country which need it most will not go as far as it would have just six months ago. We may find that levelling up is more like a small step up.

Public finance leaders will have to work out how to make scarce funding stretch further than ever, if levelling up policies are to be successful. To solve these problems, we need people who are not only good with numbers, but who are creative, empathetic and can problem solve by thinking outside the box. Finance leaders need to understand their local communities, the difficulties they face and the solutions they need.

Levelling up is not cheap, and is certainly not quick. Being able to look at the bigger, longerterm picture, while staying on top of the details, will be vital skills in ensuring levelling up funding is used in the most effective way possible. Having a long-term focus will prevent any knee jerk reactions to soaring inflation, and ensure that good public financial management is central to all decision making.

More so than ever, public sector finance professionals of today and tomorrow need the skills to be able to navigate ‘VUCA’ factors: volatility, uncertainty, change and ambiguity. If there was ever a set of words to describe today’s climate, it would be these. To help deal with uncertainty, CIPFA offers a free VUCA micro e-learning module to help understand and navigate current challenges. • Sarah Shreeves, Head of Training Services, CIPFA

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