Co-Funded Payroll Scheme Phase 5: Approval of Guidance

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A decision made on 28 May 2021

Decision Reference: MD-TR-2021-0069
Decision Summary Title:	Approval of guidance for Co-Funded Payroll Scheme Phase 5		Date of Decision Summary:	28th May 2021
Decision Summary Author:	Head of Investment Appraisal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Approval of guidance for Co-Funded Payroll Scheme Phase 5		Date of Written Report:	28th May 2021
Written Report Author:	Head of Investment Appraisal		Written Report: Public or Exempt?	Public
Subject: Approval of the guidance for to the Co-Funded Payroll Scheme (CFPS) Phase 5
Decision(s): The Minister decided to approve the guidance for the Co-Funded Payroll Scheme Phase 5.
Reason(s) for Decision: The Minister for Treasury and Resources approved MD-TR-2021-0037, to establish the Co-Funded Payroll Scheme Phase 5. This guidance is for the Government Co-Funded Payroll Scheme Phase 5, for the application period 1st May 2021 to 30th June 2021. For the avoidance of doubt, this guidance replaces guidance for the CFPS Phase 4 published on gov.je in May 2021 for claims made in respect of April 2021. Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a Government Plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan. The guidance for the Co-Funded Payroll Scheme Phase 5 was agreed on 28th May 2021 by the Ministers for Social Security; External Relations; and Economic Development, Tourism, Sport and Culture.
Resource Implications: There are no additional resource implications arising from this decision.
Action required: Head of Financial Governance to notify the Head of Finance Business Partnering for Customer and Local Services that this decision has been signed and the guidance to be published on www.gov.je
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Co-Funded Payroll Scheme Phase 5: Approval of Guidance

Treasury and Exchequer

Ministerial Decision Report

co-funded payroll scheme phase 4

Purpose of Report

To enable the Minister for Treasury and Resources to approve the guidance for the Government Co-Funded Payroll Scheme (CFPS) Phase 5.

Background

The Government Plan 2021-2024 provides £40 million as a Covid-19 Reserve within the General Reserve for Covid-19-related funding needs that cannot be met from existing heads of expenditure in 2021.

The Minister for Treasury and Resources approved MD-TR-2020-0049, to establish the Co-Funded Payroll Scheme Phase 2, MD-TR-2020-0063 and MD-TR-2020-0100 to extend the scheme until 31st August and 31st December 2020 respectively. In MD-TR-2020-0100 and MD-TR-2020-0168, the Minister indicated an intention for extend the Scheme into 2021 subject to approval by the States Assembly of the Government Plan 2021-24. The Government Plan 2021-24 makes available £11.3 million in the Covid-19 Response Head of Expenditure for the CFPS in 2021. Through MD-TR-2021-0011, the Minister allocated a further £27.6 million to meet the costs of the Scheme in 2021 bringing the total balance available in 2021 to £38.9 million. In MD-TR-2021-0037 the Minister extended the CFPS for selected sectors to June 2021 to establish Phase 5.

CFPS Phase 5

On 1st April, the Minister for Treasury and Resources established the Co-Funded Payroll Scheme Phase 5, which extends support for businesses that remain impacted by public health restrictions and/or those that were the most significantly affected by the Winter Strategy Circuit Breaker.

The structure and operation of the CFPS Phase 5 mirrors the Phase 4 Scheme that was in place until the end of April 2021. However, to avoid risks associated with a potential cliff-edge exit from the Scheme, the formula used by the CFPS Phase 5 for calculating the subsidy payable will taper as follows:

	Apr (Phase 4)	May (Phase 5)	Jun (Phase 5)
Elevated Scheme: Subsidy Formula	+30%	+20%	+10%
Elevated Scheme: Max Subsidy	90%	90%	90%
Core Scheme: Subsidy Formula *	+20%	+20%	+10%
Core Scheme: Max Subsidy *	80%	80%	80%

*Available in May and June, only for hire car companies, taxis and inbound passenger transport businesses and their support services

The Scheme guidance does not include any other additional or amended provisions.

Recommendation

The Minister is recommended to approve the guidance for the CPFS Phase 5.

Reason for Decision

The Minister for Treasury and Resources approved MD-TR-2021-0037, to establish the Co-Funded Payroll Scheme Phase 5. This guidance is for the Government Co-Funded Payroll Scheme Phase 5, for the application period 1st May 2021 to 30th June 2021. For the avoidance of doubt, this guidance replaces guidance for the CFPS Phase 4 published on gov.je in May 2021 for claims made in respect of April 2021.

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a Government Plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

The guidance for the Co-Funded Payroll Scheme Phase 5 was agreed on 28th May 2021 by the Ministers for Social Security; External Relations; and Economic Development, Tourism, Sport and Culture.

Resource Implications

There are no additional resource implications arising from this decision.

Report author: Head of Investment Appraisal	Document date: 28th May 2021
Quality Assurance / Review : Head of Financial Governance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2021-0069 - CFPS Phase 5 Guidance\WR - Guidance for Co-Funded Payroll Scheme Phase 5.docx
MD sponsor : Treasurer of the States