Crystal Ball for 2025: Year of the Wood Snake
Posted: January 2, 2025
The last 4 years have been a whirlwind to say the least. From 2020-2024 the UK has had four Prime Ministers, five Chancellors of the Exchequer, and one global pandemic. We’ve faced riots, unprecedented tax rises, our largest population increase in over 50 years (68.2 million by mid-2023), and we lost our longest reigning monarch. I know I’m not alone in still feeling the impact when I hear “God save the King”.
The effect this has had on business has been profound. The post-Covid bubble sent salaries and day rates rocketing. The public sector struggled to compete with blue-chip companies, which in turn struggled to compete with dynamic start-ups. Nobody hired enough entry-level staff because teams didn’t have the capacity to train them.
The war for talent and rising energy costs due to the war in Ukraine sent inflation soaring to 11.1%. This created pressure on organisations to become more efficient, often resulting in downsizing or restructuring. However, whilst the public sector has grown, productivity has plummeted. Rebalancing these trends will be critical for 2025.
As of December 2024, the UK civil service headcount stands at approximately 513,000 full-time equivalent (FTE) employees, reflecting a 33% increase since 2016. To address this growth, the government plans to reduce the civil service by over 10,000 positions to achieve a 5% saving in departmental budgets. The Ministry of Defence and other departments aim to reduce their workforce by 10%, prioritising efficiency gains and areas such as digital defence. Meanwhile, defence spending is projected to rise from £56.9 billion in 2024/25 to £59.8 billion in 2025/26, increasing from 2.29% to 2.30% of GDP.
In Chinese culture, the snake symbolises wisdom and agility, while the element of wood represents growth, flexibility, and tolerance. This aligns perfectly with the change’s organisations must embrace as we look ahead to 2025.
Imagine your business as a hedge. Over time, it grows and flourishes, but without regular pruning, it can become overgrown and unwieldy. A gardener knows that trimming away the old, rigid branches allows for fresh, adaptable shoots to thrive. In the same way, businesses must be willing to cut away outdated practices, technologies, and structures that hinder progress. By embracing flexibility and pruning what no longer serves the organisation, you foster dynamic growth that can make your business more agile, resilient, and equipped for the future.
Navigating these challenges will require strategic foresight and agility, especially as Public Sector organisations and Defence agencies adjust to tighter budgets and a rapidly evolving technological landscape. RT Consulting’s highly experienced consultancy team, which includes experts in Cyber Security, Digital Defence, and Organisational Design, is well-positioned to help organisations achieve efficiency gains and modernise operations in line with Government priorities.
As organisations look to streamline operations, embrace digital transformation, and prioritise innovation, RT Consulting can provide the capabilities and support needed to achieve these goals without compromising on quality or performance. Whether it’s through Contingency or Outcome-based, Project Management or Cyber Security expertise, we are committed to collaborating closely with our customer to not only survive but thrive in an increasingly complex landscape.
