Trowers & Hamlins has launched a dedicated team to advise central and local government bodies in northern England how to cope with budget cuts as the public sector braces itself for aggressive moves to slash public spending.

Trowers said that the launch of the team, which is based in its Manchester office, comes in response to growing demand from local government bodies for advice on how to manage their business amid sustained spending cuts.

The three-lawyer team will advise on how to implement new ways to deliver services, including the use of shared services and outsourcing. The team has already started work on a number of projects including the Cheshire Waste PFI and the Blackpool Council BSF project. Other authorities to have instructed the team include Chester Council and Lancashire County Council.

The team is being led by Manchester-based projects partner Mike Mousdale, who recently joined Trowers from Eversheds.

He commented: "We are excited to be making this step change to public sector work we do across the north and are looking forward to advising public sector bodies and their partners on the many cost-effective service delivery options now open to them."

Helen Randall, who heads up Trowers' public sector commercial department, added: "Many public sector bodies face the huge challenge of reducing their budget while maintaining frontline services and much of our work will be geared towards helping them to find effective solutions that match their needs."

The launch comes ahead of a statement later this month from coalition Government chancellor George Osborne, which is expected to set out in detail plans to slash central government spending by more than 25% for some major departments.

Advisers are watching the coalition Government's policies closely to gauge the impact on public sector legal work. In August Trowers made a number of job cuts after a staffing review, including laying off two solicitors in its public sector commercial team in London, as well as one housing solicitor in Exeter and one professional support lawyer in banking and finance in London.