Public sector suppliers feel the pinch

So far this year, as a direct consequence of government budget cuts, the number of public sector service suppliers going under has increased by 50%. It is expected that this rate will rise in the short to medium term as the full consequence of the government's recent budget changes and tax increases come into effect.

One of the main areas of concern is the care home industry which has already been rocked by a reduction in occupancy rates purely and simply because of budget cuts by local authorities. This is an area which was in many ways thought to be "shockproof" as the UK population continues to age. However, this shows that the UK government is adamant that budget cuts will be implemented across the board even if this causes major "discomfort" for those in need of social housing and social care.

Historically being part of the UK public sector services industry was thought to be something of a long-term guarantee for business. However, over the last few weeks it has become apparent that the public sector services industry in the UK has expanded out of control and ultimately needs to be reigned in during the short to medium term.