Growth 2020: Proposal to repurpose allocations

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 22 December 2020

Decision Reference: MD-TR-2020-0167
Decision Summary Title:	Proposal to repurpose 2020 growth allocations		Date of Decision Summary:	18th December 2020
Decision Summary Author:	Head of Group Reporting		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Proposal to repurpose 2020 growth allocations		Date of Written Report:	18th December 2020
Written Report Author:	Head of Group Reporting		Written Report : Public or Exempt?	Public
Subject: To enable the non-recurring re-purposing of the 2020 growth allocated in the Government Plan to manage the pressures in departments experienced in 2020.
Decision(s): The Minister decided to approve the repurposing of up to £19.1 million of 2020 growth within departments.
Reason(s) for Decision: 2020 has been an extraordinary year with the coronavirus pandemic having a major financial impact on the Government of Jersey. Departments are forecasting the direct financial impact of the pandemic on their services through reduced income and increased spend to be over £200 million. As a result, departments have had to be agile and flexible in the way in which they deliver services and, where possible, halt, defer or reduce spending to support the financial challenge. That process has included delaying activity to deliver the efficiencies targets identified in the Government Plan but it has also halted or reduced the activity to deliver the growth included in the Government Plan. To enable departments to use existing resources before calling on any additional funding to manage the financial pressures in 2020, the Minister for Treasury and Resources is approving the one-off re-purposing of 2020 growth in 2020.
Resource Implications: There are no additional resource implications arising from this decision.
Action required: The Head of Financial Governance to advise Heads of Finance Business Partnering once approved.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Growth 2020: Proposal to repurpose allocations

Treasury and Exchequer

Ministerial Decision Report

Proposal to repurpose 2020 growth allocations

Purpose of the report

To enable the Minister to approve the re-purposing of 2020 growth to manage the delivery of 2020 efficiencies targets and other budgetary pressures that have occurred largely as a result of the impacts of covid on Government operations.

The report will provide:

 A summary of 2020 growth allocations and expected year end variances

 Context behind the growth variances

 A summary of the growth that is proposed to be repurposed

Growth allocations by department

The table below summarises the growth allocations in 2020 by Department which were included in the Government Plan 2020-23.

Table 1: Growth allocations by Department

Department	2020 growth (£000)
CLS	3,435
COO	15,870
CYPES	16,895
HCS	11,499
GHE	3,144
JHA	1,900
JOA	2,090
Non-Mins	3,212
OCE	6,376
SPPP	6,311
SA	1,634
T&E	8,368
Total	80,734

During 2020, there were some movements between departments as part of a Transition II report with further movements from GHE to OCE as GHE became IHE.

Table 2 shows the revised allocation of the £80.7m of growth by department along with the forecast spend and variance expected at the end of 2020 for each department.

Table 2: Forecast spend and variance by department

Department	2020 Growth (£000)
Department	Budget	Forecast	Variance
CLS	3,457	3,011	446
COO	15,870	14,070	1,800
CYPES	16,873	11,556	5,317
HCS	11,311	3,519	7,792
IHE	320	295	25
JHA	341	261	80
JHA:SoJP	2,288	2,288	-
JOA	2,090	2,090	-
Non-Mins	3,212	2,340	872
OCE	8,594	5,36 3	3,231
SPPP	6,376	4,318	2,058
SA	1,634	834	800
T&E	8,368	7,562	806
Total	80,734	57,537	23,227

Context behind the growth variances and re-purposing

2020 has been an extraordinary year with the coronavirus pandemic having a major financial impact on the Government of Jersey. Departments are forecasting the direct financial impact of the pandemic on their services through reduced income and increased spend to be over £200 million.

As a result, departments have had to be agile and flexible in the way in which they deliver services and, where possible, halt, defer or reduce spending to support the financial challenge. That process has included delaying activity to deliver the efficiencies targets identified in the Government Plan but it has also halted or reduced the activity to deliver the growth included in the Government Plan

In response to the pandemic a ‘Covid Strategy’ was developed to direct the prioritisation of services and resources across government with the key aims of safeguarding the health of islanders, minimising the impact on the local economy and managing the impact on government finances.

Accordingly, resources were directed towards the pandemic response with most areas of the organisation impacted to varying degrees of severity including:

CLS is managing the Government Co-Funded Payroll Scheme to offer financial support to businesses, charities, sole-traders and partners
COO have had to adapt its service delivery to account for a complete change in ways of working with the workforce working remotely
CYPES has had to change its operating model during 2020 to respond to new Covid19 regulations and evolving scientific and technical advice, including the partial closure of schools and travel restrictions. The majority of spending in the Children’s Minister’s portfolio is on staff. Inability to secure staff during the pandemic has resulted in delays to implementing new projects as well as requiring the re-prioritisation of existing staff to cover sickness and vacancies in both new and existing services.
HCS has faced a significant financial impact as a result of covid. This has included the nationalization of GPs, additional PPE, loss of income, running costs of the Nightingale Field Hospital, additional staff costs etc. The increased focus on dealing with the impact of covid on the island has meant other activity within HCS has had to be re-prioritised
IHE has led the construction of the Nightingale Field Hospital as well as experienced a substantial drop in income
JHA have been leading on the Test and Trace programme, including securing an on-island testing facility

Whilst specific funding has been approved and allocated to departments to manage the financial impacts of the above, the impact of covid has re-directed resources and activity across all departments which has reduced the capacity to deliver the efficiencies targets and growth initiatives identified in the Government Plan and, to some extent, manage service pressures.

All Accountable Officers were instructed at the start of the pandemic to take the timely action required of them in line with the ‘covid strategy’ whilst also maintaining appropriate governance of their finances. A process was implemented to allocate additional funding for the covid response through robust business cases, acknowledging that some approvals would need to be retrospective to enable key action to be taken quickly.

To minimise any further funding requirements and impact on the sustainability of government finances, departments were instructed to seek ways of funding pressures from within existing resources in the first instance. Given the operational challenges of delivering the growth initiatives included in the Government Plan, that included using funding allocated for growth to manage pressures.

To maintain a clear trail of approval, this report provides a breakdown of the unspent growth and how it is being applied to directly manage the efficiencies targets and offset other funding pressures in departments.

It is requested that the underspends in growth are repurposed on a non-recurring basis in 2020.

Treasury and Exchequer

Ministerial Decision Report

Growth to be repurposed

Table 3 provides a breakdown of the growth lines that are intended to be used to offset the non-delivery of 2020 efficiencies and covid pressures not funded from additional resources. As per the Efficiencies Plan 2020-23, the managing of efficiencies delivery in this way would be seen as ‘Plan C’ delivery:

“Ministers also agreed that if any of the efficiencies are not subsequently approved, they will seek alternative departmental

efficiencies to the same value to replace them and/or reduce or reprofile some of the planned spending by the equivalent amount order to ensure that income and spending remain in balance.”

Please see Appendix 1 for detail of the efficiencies that will be covered by growth.

Table 3: Re-purposing of 2020 Growth

Department	CSP priority	Growth/ Programme	Budget (£)	Forecast Expenditure (£)	Variance (£)	Use for Covid impacts not separately funded (£)	Use for efficiencies (£)	Remaining unused (£)
CLS	Reduce Inequality	Care Needs at Home	150,000	-	150,000			150,000
CLS	Reduce Inequality	Disability Social Inclusion	176,000	60,000	116,000			116,000
CLS	Reduce Inequality	Compensation for Mesothelioma	150,000	50,000	100,000		-	100,000
CLS	Reduce Inequality	Tenants' Rights	110,000	30,000	80,000		-	80,000
COO	Modernising Government	People and Corporate Services - enhanced capabilities	5,400,000	3,800,000	1,600,000	573,700	1,226,300*	-
COO	Modernising Government	Supporting One Gov - Team Jersey (HR/OD strategic partner)	1,870,000	1,670,000	200,000	200,000	-	-
CYPES	Put Children First	Health P82 - P.82/2012 White Paper: Services for Children (Early Interventions)	2,813,000	933,000	1,880,000	934,000	946,000	-
CYPES	Put Children First	Policy and Legislation Service Delivery - Care Leavers Entitlement / Children in Need & Early Help / Regulation and Inspection	1,841,000	589,000	1,252,000	351,000	901,000	-
CYPES	Put Children First	Higher Education / P.33/2019 - removal of HCA - Expenditure	6,000,000	4,840,000	1,160,000	1,160,000	-	-
CYPES	Put Children First	Improving Educational Outcomes - Eary Years / Improving Standards Jersey Premium, Reading Recovery, Language Review, School Review Framework, Jersey Music Service, School Funding & Demographics	1,743,000	1,161,000	582,000	172,000	410,000	-
CYPES	Put Children First	Independent Jersey Care Inquiry - Enchanced MASH / P.108 Recommendations 2, 3 and 4	867,000	643,000	224,000	125,000	99,000	-
CYPES	Vibrant Economy	Jerrias	375,000	206,000	169,000	169,000	-	-
CYPES	Reduce inequality	Disability Social Inclusion	30,000	-	30,000		30,000	-
CYPES	Put Children First	Independent Jersey Care Inquiry P108: Parent/Infant Psychotheraphy service	70,000	50,000	20,000	20,000		-
HCS	Improve Wellbeing	Maintaining health and community care standards	4,179,000	-	4,179,000	336,000	3,843,000	-
HCS	Improve Wellbeing	Health P82 reinstate 2019 new and recurring (£1605k txfrd to BAU - various)	3,597,000	1,905,000	1,692,000	-	1,692,000	-
HCS	Improve Wellbeing	Mental Health (£300k txfrd to BAU - Listening Lounge)	3,200,000	1,614,000	1,586,000	-	1,586,000	-
HCS	Improve Wellbeing	Preventable diseases	300,000	-	300,000	-	300,000	-
HCS	Reduce Inequality	Disability social inclusion (budget reduced - txfr £87k per Transition II)	35,000	-	35,000	-	35,000	-
IHE	Protect our Environment	Countryside Access Strategy	195,000	169,800	25,200		-	25,200
JHA	Modernising Government	GST de-minimis changes	150,000	70,000	80,000		-	80,000
NM - Bailiff's Chambers	Vibrant Economy	Bailiff's Chambers 75th Anniversary Liberation Day	485,000	409,000	76,000			76,000
NM - Judicial Greffe	Modernising Government	Legal Aid Office	400,000	180,000	220,000			220,000
NM - Judicial Greffe	Modernising Government	Policy/legislation service delivery	100,000	1,000	99,000			99,000
NM - Judicial Greffe	Improve Wellbeing	Mental Health legislation	340,000	283,000	57,000			57,000
NM - Judicial Greffe	Modernising Government	Judicial Greffe additional funding: Tribunal Service	78,000	70,000	8,000			8,000
NM - Law Officers' Dept.	Modernising Government	Domestic Compliance ('Spend to Raise')	105,000	34,811	70,189			70,189
NM - Law Officers' Dept.	Vibrant Economy	Financial Crimes Unit	505,000	443,351	61,649			61,649
NM - Viscounts	Modernising Government	Viscount's Department additional funding	113,000	33,000	80,000			80,000
NM - Viscounts	Modernising Government	Viscount's Department additional funding	164,000	86,000	78,000			78,000
NM - Viscounts	Improve Wellbeing	Mental Health legislation	109,000	35,000	74,000			74,000
NM - Viscounts	Modernising Government	Viscount's Department additional funding	48,000	-	48,000			48,000
OCE	Vibrant Economy	Anti-money laundering/CFT	1,085,000	363,000	722,000	722,000		-
OCE	Vibrant Economy	Jersey Finance Growth	830,000	230,000	600,000	600,000		-
OCE	Vibrant Economy	Continuation of External Relations funding	1,201,000	809,000	392,000		153,000	239,000
OCE	Vibrant Economy	Cyber Security Growth	500,000	120,000	380,000	380,000		-
OCE	Improve Wellbeing	Inspiring an ‘Active Jersey’ (Jersey Sport)	509,000	266,000	243,000	243,000		-
OCE	Vibrant Economy	Future Economic Partnership Goods and Borders Cluster	450,000	248,000	202,000	138,500		63,500
OCE	Vibrant Economy	Delivering the Digital Policy Framework	541,000	366,000	175,000			175,000
OCE	Vibrant Economy	Economic Framework and Productivity Support	500,000	330,000	170,000	130,000		40,000
OCE	Vibrant Economy	Digital Jersey Growth	1,000,000	900,000	100,000			100,000
OCE	Vibrant Economy	Jersey Financial Stability Board	150,000	66,000	84,000			84,000
OCE	Modernising Government	Guernsey-Jersey Joint Working Programme	63,000	-	63,000		38,000	25,000
OCE	Vibrant Economy	Heritage, Arts & Culture	700,000	665,000	35,000			35,000
OCE	Vibrant Economy	Rural Economy Strategy	65,000	50,000	15,000			15,000
OCE	Vibrant Economy	Competition policy and JCRA	200,000	150,000	50,000
SPPP	Put Children First	Redress Scheme	2,230,000	1,500,000	730,000	601,012	-	128,988
SPPP	Put Children First	Independent Jersey Care Inquiry P108	749,000	520,000	229,000		-	229,000
SPPP	Put Children First	Policy/legislation service delivery: Youth Justice Review and Safeguarding Partnership Board	317,000	127,000	190,000		-	190,000
SPPP	Protect our Environment	Island Plan Review	650,000	480,000	170,000		-	170,000
SPPP	Modernising Government	Census 2021	250,000	100,000	150,000		-	150,000
SPPP	Reduce Inequality	Financial independence in old age	150,000	25,000	125,000		-	125,000
SPPP	Reduce Inequality	Housing PDB and long term plan	140,000	45,988	94,012		-	94,012
SPPP	Put Children First	IJCI: Office of the Children's Commissioner	725,000	650,000	75,000		-	75,000
SPPP	Put Children First	Improving educational outcomes	175,000	100,000	75,000		-	75,000
SPPP	Improve Wellbeing	Adult Safeguarding Improvement Plan	102,000	35,000	67,000		-	67,000
SPPP	Reduce Inequality	Disability social inclusion	110,000	50,000	60,000		-	60,000
SPPP	Modernising Government	Delivering effective financial management	200,000	153,000	47,000		-	47,000
SPPP	Protect our Environment	Assessment of public infrastructure and resources	150,000	112,000	38,000		-	38,000
SPPP	Modernising Government	Enabling policy excellence across the Government	81,000	73,000	8,000		-	8,000
States Assembly	Modernising Government	States Assembly additional funding	777,000	379,000	398,000	100,000	-	298,000
States Assembly	Modernising Government	States Greffe extended services	539,000	305,900	233,100			233,100
States Assembly	Modernising Government	States Assembly additional funding: Additional legal drafters	258,000	89,000	169,000			169,000
T&E	Protect our Environment	Climate Emergency Fund	2,000,000	1,500,000	500,000		500,000*	-
T&E	Modernising Government	Domestic Compliance ('Spend to Raise')	1,457,000	1,357,000	100,000		100,000	-
T&E	Vibrant Economy	Tax Policy and International Team investment	1,427,000	1,327,000	100,000		100,000	-
T&E	Modernising Government	Building Revenue Jersey Team	1,262,000	1,162,000	100,000		100,000	-
T&E	Modernising Government	Government of Jersey Bank charges	300,000	294,000	6,000		6,000	-
		Total	57,541,000	34,313,850	23,227,150	6,955,212	12,065,300	4,356,638

* £1.7m of efficiencies will not be delivered (£1m of the £7.35m additional tax revenue and £700k car parking charges) and it is proposed these are covered by the following growth underspends:

- T&E: £500k variance on the ‘Climate Emergency Fund’

- COO: £1.2m of the variance on the growth for ‘People and Corporate Services - enhanced capabilities’

Treasury and Exchequer

Ministerial Decision Report

Recommendation

The Minister for Treasury and Resources is asked to:

 approve the repurposing of up to £19.1m of 2020 growth

£7.0m to be used to offset other budgetary pressures, predominantly covid related
£12.1m to be used to support delivery of 2020 efficiencies

Treasury and Exchequer

Ministerial Decision Report

Appendix 1: 2020 efficiencies to be offset by growth allocations

Department	Theme	Efficiency	Budget (£)	Forecast (£)	Variance (£)	Value to be met by growth reduction (£)	Value to be met through other means (£)
CLS	Efficient Commercial Operations	CLS - Reductions in the Benefits Forecast	944,000	-	944,000	-	944,000
COO	Modern and Efficient Workforce	Reduction in avoidable overtime pay	26,300	-	26,300	26,300
CYPES	Efficient Organisational Structures	Business Support Review	1,000,000	-	1,000,000	1,000,000	-
CYPES	Efficient Commercial Operations	Highlands College Apprenticeship Scheme	571,000	-	571,000	571,000	-
CYPES	Efficient Commercial Operations	Contract Efficiency	565,000	50,000	515,000	515,000	-
CYPES	Efficient Organisational Structures	Accommodation Rationalisation	135,000	-	135,000	135,000	-
CYPES	Modern and Efficient Workforce	Reduction in Fixed Term Contracts	110,000	-	110,000	110,000	-
CYPES	Efficient Commercial Operations	Cost Recovery	100,000	-	100,000	100,000	-
CYPES	Modern and Efficient Workforce	Reduction in Avoidable Overtime Pay	75,000	-	75,000	75,000	-
CYPES	Efficient Commercial Operations	Contract Efficiency – Funding Teachers Pay Award	(120,000)		(120,000)	(120,000)	-
HCS	Commercial & Customer	Cross cutting commercial	750,000	-	750,000	750,000	-
HCS	Commercial & Customer	Income Recovery	722,000	246,000	476,000	476,000	-
HCS	Commercial & Customer	Non Pay costs (excl. drugs)	651,000	216,000	435,000	435,000	-
HCS	Commercial & Customer	Pharmacy & Drugs	400,000	250,000	150,000	150,000	-
HCS	Modern Workforce / TOM	Acute services skill mix	500,000	-	500,000	500,000	-
HCS	Modern Workforce / TOM	Medical staffing	400,000	-	400,000	400,000	-
HCS	Modern Workforce / TOM	Nurse establishment & bed reconfiguration	700,000	89,000	611,000	611,000	-
HCS	Modern Workforce / TOM	TOM	1,211,000	-	1,211,000	1,211,000	-
HCS	Operational Excellence	Acute floor reconfiguration	250,000	-	250,000	250,000	-
HCS	Operational Excellence	Community & Voluntary Sector	50,000	-	50,000	50,000	-
HCS	Operational Excellence	Continuing Care	200,000	-	200,000	200,000	-
HCS	Operational Excellence	Intermediate Care	116,000	-	116,000	116,000	-
HCS	Operational Excellence	Mental Health	520,000	95,000	425,000	425,000	-
HCS	Operational Excellence	Off-island acute services	500,000	500,000	-	-	-
HCS	Operational Excellence	Outpatient services	500,000	-	500,000	500,000	-
HCS	Operational Excellence	Productive theatres	1,000,000	-	1,000,000	1,000,000	-
HCS	Operational Excellence	Support Services	530,000	148,000	382,000	382,000	-
IHE	Efficient Commercial Operations	Additional recharging to capital schemes	500,000	180,000	320,000		320,000
IHE	Efficient Organisational Structures	GHE operating model savings	300,000	175,500	124,500		124,500
IHE	Efficient Commercial Operations	Contract efficiency	182,500		182,500		182,500
IHE	Efficient Organisational Structures	Business Support review	50,000	-	50,000		50,000
IHE	Efficient Commercial Operations	Contract efficiency - tactical opportunities (day to day spend)	37,500	-	37,500		37,500
IHE	Modern and Efficient Workforce	Avoidable overtime	32,940	-	32,940		32,940
IHE	Modern and Efficient Workforce	More effective management of sickness	30,000	-	30,000		30,000
IHE	Modern and Efficient Workforce	Voluntary redundancy and early retirement	17,900	-	17,900		17,900
JHA	Efficient Organisational Structures	JHA Directorate - JHA operating model phase 2 (now allocated to services)	300,000	-	300,000		300,000
JHA	Efficient Commercial Operations	Customs and Immigration - Increased passport fees	193,000	-	193,000		193,000
JHA	Efficient Commercial Operations	JHA Directorate - Contract efficiency (now allocated to services)	173,000	-	173,000		173,000
JHA	Efficient Organisational Structures	JHA Directorate - Business support review (now allocated to services)	133,000	-	133,000		133,000
JHA	Efficient Commercial Operations	JHA Directorate - Cost recovery (now allocated to services)	20,000	-	20,000		20,000
JHA	Modern and Efficient Workforce	Ambulance - Reduction in the use of agency staff	10,000	5,100	4,900		4,900
JHA	Modern and Efficient Workforce	Ambulance Service - Reduction in avoidable overtime pay	10,000	5,100	4,900		4,900
JHA	Modern and Efficient Workforce	Ambulance Service - Reduction in avoidable overtime pay	10,000	5,100	4,900		4,900
JHA	Modern and Efficient Workforce	Customs and Immigration - Voluntary redundancy and early retirement	10,000	4,000	6,000		6,000
JHA	Modern and Efficient Workforce	Ambulance Service - More effective management of sickness	6,000	3,100	2,900		2,900
JHA	Modern and Efficient Workforce	Customs and Immigration - Reduction in avoidable overtime pay	3,000	-	3,000		3,000
JHA	Modern and Efficient Workforce	Ambulance Service - Voluntary redundancy and early retirement	1,000	600	400		400
OCE	Efficient Organisational Structures	OCE operating model savings (from GHE)	200,000	-	200,000		200,000
OCE	Efficient Commercial Operations	Unspecified - TBC	200,000	-	200,000	191,000	9,000
OCE	Efficient Commercial Operations	Contract efficiency	80,000	-	80,000		80,000
OCE	Efficient Organisational Structures	Business Support review	25,000	-	25,000		25,000
OCE	Modern and Efficient Workforce	Voluntary redundancy and early retirement	3,500	-	3,500		3,500
SPPP	Efficient Commercial Operations	Recovery of policy costs	113,000	-	113,000		113,000
T&E	Modern and Efficient Processes and Systems	Reduction in costs arising from system transformation	230,000	-	230,000	116,000	114,000
T&E	Modern and Efficient Workforce	Modern and efficient workforce	190,000	-	190,000	190,000	-
T&E	Efficient Commercial Operations	Contract efficiency	100,000	-	100,000		100,000
T&E - RJ	Modern and Efficient Processes and Systems	Additional tax revenue	7,350,000	6,350,000	1,000,000	1,000,000
Unallocated	Efficient Commercial Operations	Car parking charges	700,000		700,000	700,000
	TOTAL		23,617,640	8,322,500	15,295,140	12,065,300	3,229,840