The new auditor general for Wales has predicted a total cut to funding for public services in the country of £1.5 billion over the next three years. (Updated with audio).
The auditor general for Wales, Gillian Body, said: "There are tough times ahead which require tough decisions. In order to deal effectively with these challenges, the public sector needs to change and innovate."
The report also shows a steady increase in the number of people working in public services in Wales – 319,000 – which has risen by 17,000 since 2005. The report also says, despite public services facing a reduction on spending costs, unemployment in Wales and the fact people are living longer are putting pressure on services as demand for them increases.
But, the report warns against the approach of doing the same amount for less money – and instead says companies should focus on achieving more for less money.
The report also criticises the decision taken by the Cardiff Local Health Board to award the contract for out-of-hours GP services to a new company with no track record of providing services to patients – a costly decision for the city.
You can read the full report from the Auditor General here.
Jonathan Morgan AM for Cardiff North, who is also Chair of the Public Accounts committee for the National Assembly for Wales said:
"The Auditor General's report is a must-read for the entire public sector in Wales as it faces its biggest challenge for at least a generation.
"With significant financial cuts on the way, public bodies cannot expect to muddle through by doing the same things with less money. If they are to provide citizens with good quality services they need to focus more attention on finding radical new ways of working."
