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A zero sum game?

The number of SEND tribunal cases is rising and the proportion of appeals ‘lost’ by local authorities is at a record high. Lottie Winson talks to education lawyers to understand the reasons why, and sets out the results of Local Government Lawyer’s exclusive survey.

Knee-jerk reaction to cuts could see steep rise in claims, says insurer

A knee-jerk reaction to budget cuts could result in significantly increased claims against public sector organisations, a report by Zurich Municipal has claimed.

In Tough choices: Different perspectives on the long term risks facing the public sector and wider civil society, the leading insurer predicted that a failure to adequately manage risks would lead to a higher incidence of claims, in particular in relation to:

  • unfair dismissal
  • fraud
  • personal injury
  • property maintenance
  • business interruption, and
  • trustee indemnity.

The report identified six core areas of major risk for public service providers: the long-term implications of short-term decision making; a reduction in service breadth and quality; emerging gaps in the Big Society; maintaining a productive and skilled workforce; reputational damage; and increased risk-taking and potential claims growth.

A survey conducted by Zurich Municipal and Ipsos Mori nevertheless suggested that public sector organisations are confident in their ability to withstand the various challenges presented by budget cuts, increasing demand for services and uncertainty about implementing the government’s reform programme.

Some 91% of public sector and voluntary organisation leaders said they were confident in their risk management processes. By contrast, only 47% of the public shared that confidence.

Nearly half of the leaders questioned (47%) admitted that cuts may impair their organisation’s ability to deliver public services. The possibility of financial loss and reputation damage also weighed heavily on their minds.

Rob Allison, managing director at Zurich Municipal, said: “Unquestionably, now is a crucial time for the public sector, with major decisions being made about how and where to drive cost savings. Faced with the understandable need to focus on short-term delivery and cost reduction, it is difficult for public sector managers to pay sufficient attention to the significant long-term risks ahead, and the need for them to plan for them now.

“These challenges require a careful approach focused not just on the immediate issues facing public services, but also on the impact of some of the long-term problems as well. Without this dual focus, there will be considerable risks and costs ahead.”