Job losses and pay freezes were widespread in the public sector last year, particularly in local councils who were under intense pressure to reduce spending and improve their services.

In addition, there is major uncertainty in light of the forthcoming election, a potential new government and perhaps further sweeping job and spending cuts. In support of this view, The Institute of Fiscal Studies predicts the next government will cut spending on public services by 2.3% a year from 2011, reinforcing the fact there will be tough times ahead in the public sector.

However, amidst this uncertainty, interim managers are being used increasingly as a resource to help public sector organisations restructure and transform, reshape their management teams, manage change programmes and fill in senior level gaps.

In many cases they are being used in favour of management consultants to provide hands-on change management programmes because they are a more cost effective option and have a primary focus on the ‘Big D’ – Delivery.

Interims also prove a logical resource option because they hit the ground running on day one, add immediate value and bring their extensive experience to implement programmes tailored to the needs of each organisation.

Additionally, the proactive transfer of their knowledge and skills to permanent staff provides a long lasting legacy to their work. The demand for interim managers looks set to continue as Buying Solutions, the government procurement agency estimated last year that £2.5bn will be spent within the public sector in the next four years on non permanent staff.

This view is also supported by the latest market research from Russam GMS which shows that from July - December 2009 pay rates for interim managers working in central and local government remained steady. This stability was notable against a backdrop of the recession and continued uncertainty around future spending in the lead up to general election.

Interestingly, interims working in education and the NHS where there is perhaps less insecurity than in local and central government saw their pay increase respectively. Those in education experienced pay increases of 18% and interims in the NHS saw their pay rise by 5% in the last six months.

It's likely that this trend will continue as councils plan more radical reforms to save money.

Take the ‘easyCouncil’ model currently being pioneered by Barnet, where much like the services offered by no frill airlines such as easyjet; it will offer a range of base-line services with additional ‘added-value’ services at extra cost to residents.

As other councils follow suit and adopt these types of models, there will be opportunities for interim expertise to assist in council reform.

The future of Non Departmental Public Bodies (NDPBS or Quangos), could also prove another area of opportunity.

The Conservative party has indicated that NDPBs will be under threat and the void this would create would be filled at a more regional and local level with greater involvement of local authorities and the third sector. Interims could play a big part in helping with this restructure and managing this change.