Accounting
Accountants set to be hard hit by Coalition spending cuts |
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| Accounting | |
| Written by Roberta Murray | |
| Thursday, 10 June 2010 | |
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But cuts likely to be offset by more banking sector opportunities.
Accountancy contractors working in the public sector are bracing themselves for jobs cuts as the Coalition Government takes steps to cut public spending, according to new research carried out by giant group plc, the workforce management solutions provider. Matthew Brown, Managing Director of giant, comments: “Demand for accountancy contractors in the public sector, particularly in the Treasury, Financial Services Authority and the Bank of England mushroomed following the banking crisis. With the Treasury now preparing to drop the axe on public spending, contingent staff could be in the firing line.” “Politically it is tempting for the Government to say that contractors will be the first out of the door once these cuts come in to force, but the reality could be rather different. In the long term there could be increased use of accountancy and interim financial controllers to help find the efficiency savings which will be central to reducing the deficit.” According to giant group, despite concern over public sector spending cuts, 62.4% of accountancy contractors are expecting their remuneration packages to increase over the next twelve months. Brown comments: “The shift in job creation from the public to private sector should see pay for accountancy contractors rise this year. As the market recovers, there will be pressure on employers to increase pay.” Rebound in confidence in the financial services sector The research carried out by giant group reveals a big leap in the number of accountancy contractors expecting investment banks and fund managers to provide the most job opportunities over the next year – 18% now compared to 15.7% in Q3 2009. Just 9.4% of accountancy contractors polled in Q3 2008 thought that investment banks would create the most finance jobs. Matthew Brown comments “The level of deal-making activity in investment banks is rebounding. There has been an upsurge in M&A deals and bond issuance has also picked up as confidence levels have risen and investor appetite has started to return.” “Finance departments in banks were squeezed post credit-crunch. Many were left understaffed, but while there is still reluctance to increase permanent headcounts, contractors are likely to be in demand.”
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