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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Co-Funded Payroll Scheme Phase 3: Approval of the extension

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A decision made on 31 July 2020

Decision Reference: MD-TR-2020-0100

Decision Summary Title:

Extension of the CFPS - Phase 3

Date of Decision Summary:

31st July 2020

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:

Extension of the CFPS - Phase 3

Date of Written Report:

31st July 2020

Written Report Author:

Head of Investment Appraisal

Written Report :

Public or Exempt?

Public

Subject: Approval of the extension of the Co-Funded Payroll Scheme (CFPS) to establish Phase 3  

Decision(s):

 

The Minister approved an extension to the CFPS to establish Phase 3 from 1st September 2020 until 31st December 2020. It is intended that a further extension from 1st January 2021 to 31st March 2021 will be proposed in the Government Plan 2021-2024.

The Minister also approved changes to the Guidance for the CPFS Phase 2 as documented in the attached report. These changes will take effect from 1st August 2020 and apply to claims made in respect of August and future months.

The Minister instructed the Treasurer of the States not to authorise drawdowns of funding that would exceed a total of £125 million in 2020.

Reason(s) for Decision:

 

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 current Policy for Allocations from the Reserve agreed by the Minister for Treasury and Resources on Friday 17th July 2020 sets the requirement for all allocations from the General Reserve (Covid-19) once approved by the States Treasurer to be referred for review to either the Council of Ministers or the relevant Competent Authorities Ministers and to seek comments from the Principal Accountable Officer (PAO) prior to submission to the Minister for approval.

 

The Minister for Treasury and Resources approved MD-TR-2020-0049, to establish the Co-Funded Payroll Scheme Phase 2 (with £46 million allocated to Customer and Local Services by this decision, a maximum cost of £138 million and further drawdowns to be approved by the Treasurer), and MD-TR-2020-0063 to extend the scheme until 31st August 2020.

 

This extension was approved by the Council of Ministers on the 30th July 2020. The PAO was consulted on the 29th July 2020.

 

Following approval of the extension by the Council of Ministers, the Minister is satisfied that there is an urgent need to provide funding in the public interest and that threats posed to the economy warrant the higher than normally acceptable risks inherent in the extension of the CFPS, including the inevitable dilution of the Scheme’s efficiency.

 

A business case has been appraised by the Investment Appraisal Team and recommended to the Treasurer. Based upon the above, the economic advice, the business case, and after having weighed the relative economic benefits of the options and the respective, relative risks, the Treasurer recommends that the Minister agrees the extension of the CPFS to establish Phase 3, and the proposed changes to the guidance for CFPS Phase 2.

 

Costs intended to be incurred between January and March 2021 will need to be agreed by the States Assembly through the Government Plan 2021-2024.

 

 

Resource Implications:

This decision is forecast to increase costs for the CFPS by between £21 million and £38 million in 2020. It is expected that these costs can be met from within the £138 million that has already been allocated to deliver the CFPS, which the Minister is now limiting to £125 million in 2020.

 

The effect of this decision is to limit spending on the CFPS. The maximum available funding of £138 million allocated by MD-TR-2020-0049 is reduced by £13 million to a revised maximum funding of £125 million in 2020.

 

Action required: Head of Financial Governance to ensure this decision is published on www.gov.je  and notify the Head of Finance Business Partnering for Customer and Local Services.

 

Signature:

 

 

Position:  Deputy S J Pinel, Minister for Treasury and Resources

Date Signed: 31st July 2020

 

Date of Decision: 31st July 2020

 

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