Comprehensive Spending Review: Allocation of restructuring provision

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A decision made on 31 January 2011 regarding the comprehensive spending review: restructuring provision and allocation to the Health and Social Services Department

Decision Reference: MD-TR-2011-0010
Decision Summary Title:	Comprehensive Spending Review (CSR) – Allocation of restructuring provision and budget transfer to Health and Social Services		Date of Decision Summary:	24th January 2011
Decision Summary Author:	Comprehensive Spending Review Team Leader		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Comprehensive Spending Review – Initial Budget Requirement		Date of Written Report:	24th January 2011
Written Report Author:	Comprehensive Spending Review Team Leader		Written Report : Public or Exempt?	Public
Subject: Comprehensive Spending Review (CSR) –restructuring provision and allocation to Health and Social Services.
Decision(s): The Minister approved the budget provision of £2,455,000 to deliver the CSR proposals funded from the T&R Restructuring Provision including a budget transfer from the T&R Restructuring Provision to Health and Social Services in the sum of £365,000 under Article 15(1)(a) of the Public Finances (Jersey) Law 2005
Reason(s) for Decision: The States recognised the need to invest funds to achieve savings as significant as £65 million over 3 years when it approved a Restructuring Provision of £6 million in 2011 and earmarked £10 million in each of the following two years. This current request for £2,455,000, which is supported by the Council of Ministers, will ensure key elements of the CSR programme – which will yield £65 million of savings over 3 years - are provided such as the Programme Office, OD and ER support, continuing the Procurement Transformation Project including an investment in Health and Social Services which will yield £750,000 savings per annum and providing key actuarial advice relating to the pension fund. The 2011 Annual Business Plan (page 31) states: “For the allocation of the Restructuring Provision each initiative will require a full business case to be prepared by the department demonstrating, where appropriate, the payback in terms of future savings within the required 3 year period. This would then be reviewed by the Corporate Management Board and if agreed would be recommended to the Council of Ministers. The decision to allocate funding will therefore be made by Ministerial Decision of the Minister for Treasury and Resources but only after consultation with the Council of Ministers”. This process and allocation were agreed by the Council of Ministers at its meeting on 27 January 2011. Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Resource Implications: The T&R revenue head of expenditure to decrease by £365,000 and the Health and Social Services Department revenue head of expenditure to increase by an identical amount. Within the T&R revenue head of expenditure £2,090,000 to be reallocated from the Restructuring Provision to other revenue Business Units. This decision does not change the total amount of expenditure approved by the States for 2011.
Action required: Ministerial Decision to be approved by the Health and Social Services Minister to accept the budget transfer. Head of Decision Support to notify the Comprehensive Spending Review Team Leader and Head of Financial Performance reporting that this decision has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: