This has without doubt continued and though on one hand it is positive that 88% of respondents have considered various initiatives, there still appears to be an element of complacency, particularly when compared to the actions taken by the private sector.

For those that have or are reducing costs, the major area of focus remains to be on the implementation of new technology, presumably to increase efficiencies. 35% said that they had put recruitment on hold whilst 24% claimed to have made or were planning to make redundancies. Both are slightly higher proportions than last time.

56% however claimed that they didn’t expect to make further significant cuts over the next 12 months - whilst more than half (57%) said they expected salaries to increase further.

Do you expect to make further significant cuts in the next 12 months?

"Despite the challenges ahead, with inevitable reductions in income, funding and the public sector squeeze, 56% are not pursuing significant cuts in the next 12 months. This is very surprising and particularly so as this is a significantly lower proportion than in March 2009, when 61% were expecting cost reductions. It may be that some have already made cuts in the intervening period, but in current circumstances to be expecting not to take further action is quite a striking and unexpected finding and appears to signal a high level of complacency."
Janet Hamblin, Baker Tilly, Partner - Social Housing

Over the next 12 months, do you expect salaries to increase?

"As caring employers, it is perhaps not surprising that no respondents were considering reductions in salaries. This is however in vast contrast to the commercial sector, which has included pay reductions and reduced working hours.  Is it complacency that only 43% of respondents are considering freezing salaries when income is potentially reducing?"
Gary Moreton, Baker Tilly, Partner – Social Housing