Ministry of External Relations
EPGDP funding allocation ER01 - Brexit
Purpose of Report
To enable the Minister for External Relations to accept non-recurring budget transfers of up to £604,000 in 2017 and up to £534,000 in 2018 to the Ministry of External Relations revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies.
Background
The United Kingdom’s (UK) unexpected vote to leave the European Union (“Brexit”) has potential consequences for Jersey. It will require a range of responses across government if the Island is to seize upon the opportunities and challenges that may develop.
A business case detailing how government may need to respond to Brexit has been reviewed by the EPGDP Officer Group and was supported politically by the Economic Policy Political Oversight Group. It is not possible to precisely determine how Jersey will be affected by Brexit until more is known about the UK’s future relationship with Europe. Therefore the decision has been taken to ring-fence resources within the EPGDP, a provision that sits within central contingencies, to enable the full range of responses that may be necessary and these funds will be released when there is greater clarity over the UK’s future direction.
In the meantime, some funds are required immediately to ensure that the Island is able to respond to developments as the UK’s relationship with Europe evolves. Therefore funding will be allocated to the Ministry of External Relations, the Financial Services Team within the Chief Minister’s Department and the Law Officer’s Department. EPGDP funding will enable an expansion in diplomatic engagement with the UK, our European neighbours and any potential new trading partners. Work will also be undertaken to scope the impact that Brexit will have on the Island’s legislation and develop any necessary legislative changes. Funding will be allocated as follows:
| 2016 | 2017 | 2018 | 2019 | Total |
External Relations | 121,000 | 604,000 | 534,000 | - | 1,259,000 |
Financial Services (CMD) | 14,000 | 120,000 | 120,000 | - | 254,000 |
Law Officers’ Dept. | 13,000 | 110,000 | 110,000 | - | 233,000 |
Total | 148,000 | 834,000 | 764,000 | - | 1,746,000 |
Any underspends will be assumed to return to the EPGDP unless the Minister for Treasury and Resources identifies a more effective use for the funding.
Recommendation
The Minister for External Relations is recommended to accept a non-recurring budget transfer of up to £604,000 in 2017 and up to £534,000 in 2018 to the Ministry of External Relations revenue head of expenditure from the EPGDP within Central Contingencies.
Reasons 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.
Resource Implications
The Ministry of External Relations revenue head of expenditure will increase by 5.0 FTE and up to £604,000 in 2017 and up to £534,000 in 2018 and the EPGDP within Central Contingences will decrease by the same amounts.
FTE increases are solely for the life of this project and will expire at the end of 2018 or whenever the project comes to an end.
This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.