23 July 2012
For the first time, the States of Jersey is setting budgets 3 years in advance and moving towards long-term planning. Jersey’s first Medium Term Financial Plan describes how Ministers are proposing to meet the objectives set out in the States Strategic Plan, and manage the Island’s resources from 2013-2015.
Key priorities include:
- plans to invest a further £26 million ongoing annual funding in Health and Social Services
- delivery of the next phase of CSR savings
- proposed £56 million for capital projects in 2013
- additional £14 million for Social Security by 2015
- £5 million initial allocation to The Innovation Fund for initiatives to boost business and create jobs through the “Back to Work” programme
For each of the years the Plan includes:
- targets for States income
- total States net expenditure limits
- expenditure limits for States Funded Bodies
- net capital expenditure allocations
- allocations for central contingencies
- allocations for States Trading Operations
This longer-term approach to budgeting is intended to provide better value for money by allowing departments to plan ahead for service development and improvement, something that will be fundamental to the successful reform of the public sector. This change will provide flexibility and deliver efficiencies which will benefit the Island.
The Council of Ministers’ proposals for the Medium Term Financial Plan will be presented to the States on 23 July and debated on 6 November. This extended lodging period is intended to allow more time for consultation and to encourage feedback from the public, as well as review by the Fiscal Policy Panel and Scrutiny.
The Treasury and Resources Minister, Senator Philip Ozouf, said “This plan delivers growth in essential services, balanced revenue budgets in all 3 years and support for the economy, while maintaining the current system of taxation.
“It does so by making careful use of existing resources, by seeing through CSR savings and by setting out an indicative capital programme that can provide both improved services and fiscal stimulus.
“At almost 400 pages long it is a detailed analysis and it represents the next in the States’ longer-term planning. I would like to encourage people to give as much feedback as possible during the extended consultation period. Comments and suggestions for improvement will be welcomed and we can make amendments can be made to the plan up to mid-October.”
Earlier this year the States set out a Strategic Plan and Chief Minister, Senator Ian Gorst, added "This financial plan will provide a firm foundation for our future."
We titled the Strategic Plan 'Inspiring Confidence in Jersey’s Future.' It is a change in the way we do things and these financial proposals show that we meant it and intend to deliver it.