Co-Funded Payroll Scheme (CFPS) for December 2021 and January 2022: Reserve Funding

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 22 December 2021

Decision Reference: MD-TR-2021-0155
Decision Summary Title:	Reserve Funding for CFPS Phase 7		Date of Decision Summary:	22nd December 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:	Reserve Funding for CFPS Phase 7		Date of Written Report:	22nd December 2021
Written Report Author:	Head of Investment Appraisal		Written Report: Public or Exempt?	Public
Subject: Approval of the reintroduction of the Co-Funded Payroll Scheme (CFPS) for December 2021 and January 2022
Decision(s): The Minister approved the reintroduction of the CFPS for claims made in respect of December 2021 and January 2022.
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 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 bring the total balance available in 2021 to £38.9 million. Under MD-TR-2021-0037 the Minister extended the CFPS until 30th June 2021. Through MD-TR-2021-0092 the Minister extended the CFPS until 30th September 2021 and increased the total budget available in 2021 to £42.5 million, through MD-TR-2021-0092. The current Policy for Allocations from the Reserve, presented to the States Assembly as R.60/2021, sets the requirement that all allocations from the General Reserve are recommended for approval by the Treasurer of the States, taking into account comments from the Principal Accountable Officer (PAO), prior to submission to the Minister for approval. Due to the urgent need to provide additional support, it has not been possible to prepare a suitable business case for this variation to the CFPS. Given the approval of the amendment by the Competent Authorities Ministers and Ministers responsible for the CFPS, 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 reintroducing the CFPS, including risks surrounding the Scheme’s efficiency and effectiveness. Accordingly, the Minister has instructed officers to implement the changes approved by Ministers on 21st December 2021. On the basis of the above and the likely estimated costs, the Treasurer recommends existing allocations made to the Covid-19 Response Head of Expenditure for the purposes of the CFPS are the most appropriate source of funding.
Resource Implications: The additional costs arising from this decision are forecast to be £500,000 in 2021 under the central scenario and can be met from the remaining balance of £7.9 million available from allocations made under MD-TR-2021-0011 and MD-TR-2021-092. Costs in January 2022 are also estimated at £500,000 under the central scenario and will be met from the Covid-19 Response Head of Expenditure. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-24 or the Government Plan 2022-25.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering for FSDEE that this decision is approved.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed: 22 December 2021		Date of Decision: 22 December 2021

Co-Funded Payroll Scheme (CFPS) for December 2021 and January 2022: Reserve Funding

Treasury and Exchequer

Ministerial Decision Report

Reserve Funding for the co-funded payroll scheme phase 7

Purpose of Report

To enable the Minister to approve the reintroduction of the Co-Funded Payroll Scheme for December 2021 and January 2022.

Background

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 bring the total balance available in 2021 to £38.9 million. Under MD-TR-2021-0037 the Minister extended the CFPS until 30th June 2021. Through MD-TR-2021-0092 the Minister extended the CFPS until 30th September 2021 and increased the total budget available in 2021 to £42.5 million through MD-TR-2021-0092. The CFPS was extended until 31st October 2021 by MD-TR-2021-0123.

The Co-Funded Payroll Scheme was withdrawn at the end of October and the Ministers responsible for the CFPS committed to reintroducing the Scheme should restrictions on business again become necessary. The Omicron variant presents a potential threat to public health and has caused the Competent Authorities Ministers (CAM) to require that masks become mandatory in certain public settings from 4th January and that people are strongly recommended to work from home from the same date.

Furthermore, following confirmation that Jersey had its first Omicron case, on 16th December, Islanders were reminded that measures had been put in place that required individuals who test positive for Omicron and, crucially, their direct contacts to isolate for 10 days. This presented a risk that people could test positive for Omicron and be required to isolate over the Christmas period. Whilst businesses remain open over the key Christmas trading period, it is likely that this measure and the threat of Omicron will have had an impact upon consumers’ behaviour.

Businesses have made representations that indicate that the isolation requirements for Omicron have led to significant numbers of cancellations with a consequent loss of revenues alongside costs associated with providing for bookings that have now been lost. While CAM has now taken the decision to amend the isolation requirements for direct contacts, there is likely to be a continuing residual impact on consumer confidence. Trading in the intervening period will likely have been lost and it is far from clear that cancelations that have already been made will be reversed or replaced.

Given this context, Ministers have agreed to reintroduce the CFPS for December 2021 and January 2022 for the sectors likely to be most significantly affected. This decision forms part of a wider package that also includes making the Fixed Cost Support Scheme available to a broader range of sectors.

Mirroring the terms of the CFPS that were in place for October 2021, the maximum subsidy payable will be 50% of £2,500 per worker per month. Businesses with two or more workers that operate in the following sectors will be able to claim CFPS support for December:

Sector

Hotels, Restaurants & Bars

Hotels and similar accommodation

Holiday and other short-stay accommodation

Event catering and other food service activities (when events)

Miscellaneous Business Activities

Organisation of conventions and trade shows

Other reservation service and related activities

Renting and leasing of motor vehicles

Travel agency and tour operator activities

Transport and Storage

Air transport (scheduled passenger)

Other passenger land transport

Water transport (sea and coastal, inland)

Miscellaneous Business Activities

Photographic activities (when connected to events)

Renting and leasing of other tangible goods (when connected to events)

Reason 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, presented to the States Assembly as R.60/2021, sets the requirement that all allocations from the General Reserve are recommended for approval by the Treasurer of the States, taking into account comments from the Principal Accountable Officer (PAO), prior to submission to the Minister for approval.

Due to the urgent need to provide additional support, it has not been possible to prepare a suitable business case for this variation to the CFPS. Given the approval of the amendment by the Competent Authorities Ministers and Ministers responsible for the CFPS, 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 reintroducing the CFPS, including risks surrounding the Scheme’s efficiency and effectiveness. Accordingly, the Minister has instructed officers to implement the changes approved by Ministers on 21st December 2021.

On the basis of the above and the likely estimated costs, the Treasurer recommends existing allocations made to the Covid-19 Response Head of Expenditure for the purposes of the CFPS are the most appropriate source of funding.

Resource Implications

The additional costs arising from this decision are forecast to be £500,000 in 2021 under the central scenario and can be met from the remaining balance of £7.9 million available from allocations made under MD-TR-2021-0011 and MD-TR-2021-092.

Costs in January 2022 are also estimated at £500,000 under the central scenario and will be met from the Covid-19 Response Head of Expenditure.

This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-24 or the Government Plan 2022-25.

Report author: Head of Investment Appraisal

Document date: 22 December 2021

Quality Assurance / Review:

Head of Financial Governance

File name and path: WR - Reserve Funding for CFPS Phase 7 (b)

MD sponsor: Treasurer of the States