The British government needs to hire an enormous number of financial services professionals

Even without the need to fill gaps at RBS, the British government is on something of a financial services hiring spree.

As we have reported previously, the FSA intends to recruit 480 people this year, to add to the 260 people it hired in 2009.

Separately, and in an effort to prepare for budgetary challenges to come, the Treasury is said to be doing its utmost to lure back all the people who've defected to investment banks in recent years.

Meanwhile, the Times, says the Asset Protection Agency is endeavouring to more than double its headcount, from 25 to 55.

Then there's the need to replace John Crompton as head of market investments at UKFI, a role apparently being filled by Heidrick & Struggles.

And according to The Telegraph, Alistair Darling will use this week's budget to announce the formation of a brand new state bank, backed by 2bn of public and private cash, the purpose of which will be to finance companies planning to build green energy projects and high-speed rail links.

All of this adds up to a significant need for financial expertise.

Shame that no one's particularly interested in working in the public sector any more

However, according to both the Times and recruiters we spoke to, private sector bankers' appetite for joining the public sector is seriously waning now that banking salaries have increased and bonuses are back up.

"A lot of compliance people are now being paid more than they used to, and the FSA isn't seen as being particularly choosy," says the head of one recruitment firm. He acknowledges, however, that the regulator has been willing to bump up pay in some risk positions.

Corporate finance director level roles in the Asset Protection Agency pay a salary of 100k-130k plus a bonus of 10%, according to the Times. It quotes a headhunter who says comparable roles in the private sector would pay 100k-150k, plus a bonus of 100%.

However, Catherine Evans, a consultant at public sector search firm Veredus, says it's wrong to assume that public sector roles are a total turn-off: "When you have reached a certain stage in your career and you want to give something back and do something with a social purpose, the public sector can be a very good option."