Co-Funded Payroll Scheme (CFPS) Phase 3+ and Scheme Guidance: Amendment

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A decision made on 22 December 2020

Decision Reference: MD-TR-2020-0168
Decision Summary Title:	Amendment to the CFPS - Phase 3+ and scheme guidance		Date of Decision Summary:	22nd December 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:	Amendment to the CFPS - Phase 3+ and scheme guidance		Date of Written Report:	22nd December 2020
Written Report Author:	Head of Investment Appraisal		Written Report: Public or Exempt?	Public
Subject: Approval of an amendment to the Co-Funded Payroll Scheme (CFPS) Phase 3+ and scheme guidance.
Decision(s): The Minister approved an amendment to the CFPS Phase 3+ to take effect from 1st December 2020 as set out in the attached report and agreed the scheme guidance. The Minister noted the intention for the Comptroller of Revenue to issue direction 2020/07 using powers given to him under Article 41(1) of the GST Law 2007 (as amended).
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. However, it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’ 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 and MD-TR-2020-0100 to extend the scheme until 31st August and 31st December 2020 respectively. The Minister has subsequently limited the cost to a drawdown of £125 million in 2020. The amendment to the CFPS was agreed by the Competent Authorities Ministers on 22nd December. The revised guidance for the Co-Funded Payroll Scheme Phase 3+ was agreed on 22nd December 2020 by the Ministers for Social Security; External Relations; and Economic Development, Tourism, Sport and Culture. The Principal Accountable Officer was consulted on 21st December. Following 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 this enhancement of the CFPS, including the inevitable dilution of the Scheme’s efficiency. On the basis of the above, and having considered the available options, taken economic advice, and weighed the potential economic benefits against the relative risks, the Treasurer recommends that the Minister agrees the amendment to the CFPS Phase 3+. The Minister noted the intention for the Comptroller of Revenue to issue direction 2020/07 using powers given to him under Article 41(1) of the GST Law 2007 (as amended). Costs that may be incurred in 2021 may require an additional allocation to be made in 2021 from within the resources provided in Government Plan 2021-24.
Resource Implications: The additional costs arising from this decision are forecast to be up to £1 million in 2020 and can be met from the £125 million available for the CFPS in 2020. The maximum available funding of £138 million allocated by MD-TR-2020-0049 was reduced by £13 million to a revised maximum funding of £125 million in 2020 by MD-TR-2020-0100. Up to an additional £1 million per month is also required in 2021 depending on the public health restrictions that will be in force. Funding in 2021 will be made available from the £11.3 million budget for the Co-Funded Payroll Scheme within the Covid-19 Response Head of Expenditure in the first instance, and beyond that any additional funding needed above that amount may require an allocation for Covid-19 Reserve within the General Reserve.
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:		Date of Decision: