Looking forward: medium-term financial strategies in the UK public sector
Having an effective medium-term financial plan makes it easier for an organisation to manage funding fluctuations. This Insight says why financial planning is so important and the benefits it brings.
In the current global economic climate public financial management is more important than ever. Having a thorough understanding of the financial outlook and the associated impact on an organisation’s ability to achieve its strategic objectives is an essential starting position for future planning and ensuring sustainability.
Resources are becoming scarcer, which coupled with increasing pressures and demands on services, makes it more challenging to ensure that resources are effectively targeted. A lack of certainty over funding is sometimes cited as a reason for not planning, whereas this should be the reason to plan. It is much easier to manage and plan for funding fluctuations if potential scenarios are mapped out and their impact on the organisation examined at an early stage.
This Insight looks at the importance of medium-term financial planning, particularly within the context of the whole systems approach and what makes an effective financial strategy.