Budget transfer from Central Contingencies to Chief Minister's Department: Financial Services Review

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A decision made 28 March 2017:

Decision Reference: MD-TR-2017-0046
Decision Summary Title:	EPGDP Funding Allocation CMD 04 –Financial Services Review		Date of Decision Summary:	28th March 2017
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	EPGDP Funding Allocation CMD 04 –Financial Services Review		Date of Written Report:	28th March 2017
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: A non-recurring budget transfer of up to £900,000 in 2017 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision within Central Contingencies.
Decision(s): The Minister approved a non-recurring budget transfer up to £900,000 in 2017 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision within Central Contingencies.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The Contingency Allocation Policy published by the Minister for Treasury and Resources (R.10/2012) states that all requests for Allocation from Contingency must be considered by the Council of Ministers. On the 1st October 2016 the COM delegated authority for the allocation of existing resources and consideration of business cases for bids for funding to the EPGDP (Economic and Productivity Growth Drawdown Provision) Group. A business case was supported politically by the Economic Policy Political Oversight Group (EPPOG) on 27th March 2017. A decision was signed by the Chief Minister on 28th March 2017.
Resource Implications: The Chief Minister’s Department revenue head of expenditure to increase by up to £900,000 in 2017. The Economic and Productivity Growth Drawdown Provision within Central Contingencies to decrease by identical amounts. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Finance Manager – Corporate Group once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Central Contingencies to Chief Minister's Department: Financial Services Review

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Treasury and Resources

Ministerial Decision Report

EPGDP funding allocation CMD 04 – Financial services review

Purpose of Report

To enable the Minister for Treasury and Resources to approve a non-recurring budget transfer of up to £900,000 in 2017 to the Chief Minister’s Department for revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies.

Background

Overview

Following review and recommendation by the EPGDP Officer Group, the Economic Policy Political Oversight Group (EPPOG) recommended that the Treasury Minister should approve funding for proposal CMD 04 Financial Services Review from the EPGDP.

EPGDP funding will enable the Chief Minister’s Department to commission Jersey Finance to conduct a review of the Island’s financial services strategy to take account of changing macroeconomic conditions, in particular in relation to the UK’s decision to leave the European Union and the potential disruptive impact of developments in technology.

The Strategic Review will include a specific focus on the challenges facing the Jersey’s banking sector and will seek to:

Explore the opportunities and threats from the UK’s changing relationship with the EU and the implications for the Island’s financial services strategy;
Develop plans to respond to the wider developments that are affecting the financial services industry, including the impact of changes in digital technology;
Identify means for the industry to secure new growth;
Develop proposals to support the banking sector to respond to macroeconomic challenges, pressures on their business models and threats from digital disruption.

Financial Analysis

Description	2017
Strategic Review	£700,000
Implementation resources	£200,000
Total	£900,000

Funding includes £200,000 for the implementation of the recommendations of the Review. However, until the recommendations are available it is not known precisely what level of resource will be required. As a result, this funding will be ring-fenced within the EPGDP and only released subject to EPGDP Officer Group agreement that additional resources are required and the implementation cannot be achieved within existing resources.

An extension to the Partnership Agreement with Jersey Finance will be prepared by the Chief Ministers Department. This will set out the terms and conditions attached to the funding in line with the recommendations of the EPGDP Officer Group, EPPOG and the project’s business case.

Any underspends will be assumed to return to the EPGDP unless the Treasury Minister identifies a more beneficial use for the funding.

3. Recommendation

The Minister is recommended to approve a non-recurring budget transfer of up to £900,000 in 2017 to the Chief Minister’s Department revenue head of expenditure from the EPGDP within Central Contingencies.

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The Contingency Allocation Policy published by the Minister for Treasury and Resources (R.10/2012) states that all requests for Allocation from Contingency must be considered by the Council of Ministers. On the 1st October 2016 the COM delegated authority for the allocation of existing resources and consideration of business cases for bids for funding to the EPGDP (Economic and Productivity Growth Drawdown Provision) Group. A business case was supported politically by the Economic Policy Political Oversight Group (EPPOG) on 27th March 2017.

A decision was signed by the Chief Minister on 28th March 2017.

5. Resource Implications

The Chief Minister’s Department revenue head of expenditure to increase by up to £900,000 in 2017. The Economic and Productivity Growth Drawdown Provision within Central Contingencies to decrease by identical amounts.

This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.

Report author : Finance Manager - Corporate Group	Document date 28 March 2017
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0046 - EPGDP Funding allocation CMD 04-Financial Services Review
MD sponsor : Head of Decision Support