More than two-thirds of public sector managers are not ready to deal with imminent cuts coming from the government’s spending review, a new survey has reported.

Almost half (48%) of 806 managers quizzed by the Institute of Leadership and Management said they had only outline plans prepared for the budget drops while 15% said they had no strategy at all to deal with the cash cuts.

The report found that one in four managers surveyed were already running at full capacity and 86% think that frontline services will be cut as a result of measures taken in the spending review.

Penny de Valk, chief executive of the Institute of Leadership and Management, said: “There is plainly no way of escaping the spectre of cuts which are now well and truly upon us.

“Managers will have to think strategically and make some difficult decisions if they are to achieve the savings required by the Treasury.

“Though a significant proportion of the managers we surveyed recognised that efficiency savings could be implemented relatively easily, a high proportion feels there is little room for change.”