Our Hospital Early Enabling Works: Funding

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A decision made on 5 March 2021

Decision Reference: MD-TR-2021-0020
Decision Summary Title:	Our Hospital Funding of Early Enabling Works		Date of Decision Summary:	4th March 2021
Decision Summary Author:	Head of Finance Business Partnering supporting Hospital		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Our Hospital Funding of Early Enabling Works		Date of Written Report:	4th March 2021
Written Report Author:	Head of Finance Business Partnering supporting Hospital		Written Report : Public or Exempt?	Public
Subject: Our Hospital Funding of Early Enabling Works
Decision(s): The Minister approved the allocation of up to £11.167 million from the General Reserve to the Our Hospital head of expenditure to fund early works in advance of the financing of the main project.
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 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. The Council of Ministers and PAO have been consulted. Whilst a business case for this specific element of the funding has not been received and evaluated the Political Oversight Group has supported this request and approved a Strategic Outline Case (SOC). The Our Hospital (OH) scheme has an approved budget in the Government Plan (GP) 2021 – 2024 of £20 million. This was designed to finance project expenditure necessary to take the project through to June 2021. The Outline Business Case (OBC) is expected to be presented to the States Assembly in Summer 2021 along with a financing proposal to provide funds for the balance of the project from July 2021. However early funding is required in advance of the funding raised through that proposition to progress the programme for enabling works on the Overdale site. This is a timing issue for the availability of funds rather than a budgetary issue, as the costs have been budgeted within the SOC. The Political Oversight Group, at their meeting of 18th February 2021, agreed to request the Minister for Treasury and Resources to make an allocation of up to £11.167 million from the General Reserve.
Resource Implications: The General Reserve will decrease by up to £11.167 million and the Our Hospital head of expenditure will increase by up to a corresponding amount. If additional funding for the project, including these Early Enabling works, is approved by the States Assembly then the amounts approved by this decision will be returned to the General Reserve in 2021, preserving the balance available for other unforeseen requirements.
Action required: Head of Financial Governance to inform the Head of Finance Business Partnering supporting Hospital that this decision has been approved.
Signature:		Position: Deputy S J Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision: