A poll of 100 PR agencies by Daryl Willcox Publishing has also revealed that 47 per cent of agencies with public sector clients have lost business as a result of government cuts.
With more than half of agencies with public sector clients relying on the sector for more than 30 per cent of their business, the Government axe is likely to have a deep impact on the industry.
Of those polled, only 32 per cent of PR agencies had confidence in keeping their public sector clients in the face of future cuts.
Band & Brown board director Simon Francis commented on the findings: 'The pressure is on all public sector departments to reduce spending across the board and it is clear that, despite many successes in the past, marketing and comms is one of the first areas to feel the pressure.'
Francis added that government departments should consider agency support to devise new strategies, or work in more flexible ways with their agency partners.
Last month, it was revealed that the COI is to make 287 redundancies, although it has not yet announced where those job losses will be made (prweek.com/uk, 3 August).