​​The Council of Ministers have proposed savings of £12 million for 2011, as part of the Comprehensive Spending Review (CSR). These 2% savings represent the first step in a 3-year programme to save an ongoing £50 million per year, to deal with projected deficits.

The proposed savings will see some reduction in posts – but these should be managed through retirement, redeployment, retraining, vacancy control, and voluntary redundancy.

Ministers have also proposed £3 million worth of investment which is essential and unavoidable – including funding to combat financial crime, to support Jersey Heritage Trust and for hospital services as recommended in the Verita report.

Ministers and States Members agreed earlier this year that the Island is facing major challenges, which require:

• a review of those services which are essential or highly desirable
• a determination to deliver services efficiently
• a wider implementation of user pays principles
• tax increases

The Comprehensive Spending Review (CSR) is designed to deliver the first 3 elements of this and the Fiscal Strategy Review is designed to deliver the fourth.

The CSR is seeking savings of £50 million from the 2011 - 2013 business plans. Some of these savings will be used to create a contingency fund for unforeseen expenses, to fund any changes needed to make savings and to fund some growth in essential services. Targeting this level of savings will break the historical cycle of annual spending increases above previous forecasts.

The CSR will be complemented by a new 3 year spending control process, which will not only limit unforeseen increases, but encourage greater efficiency and reward those services which are most successful at controlling costs.