We worked with City AM and Management Today in June to provide Source Global Research data and insight related to the UK public sectors use of consultants.

The Source data made for interesting reading. The majority of public sector clients (80 per cent) surveyed had received specific guidance on the use of external consulting support since the arrival of the Labour government. Of these, 64 per cent were instructed to reduce the fees being paid on existing projects, 61 per cent to use external support only when necessary, and 59 per cent to reduce the fees paid on future projects.

However, the Source report also noted that an overwhelming majority of UK public sector clients expect to increase their use of consulting services over the next two years, with only 2 per cent expecting to reduce their investment.

Fiona Czerniawska, CEO of Source said in City AM: “We estimate that public sector consulting accounts for around 12 per cent of the UK consulting market. Most large firms will therefore have sizeable public sector practices and are not dramatically exposed to a contraction in this space.”

Fiona added: “Mid-sized and smaller firms are a different story: Some have specialised in public sector work and a significant cut back in public sector demand could be very damaging.”