09 November 2012
The Medium Term Financial Plan was approved in the States Assembly by 36 votes to 7 with one abstention. This means that from 2013 Jersey will implement three-year financial planning to manage the Island’s resources and meet the objectives set out in the States Strategic Plan.
As part of the most comprehensive plan ever produced for Jersey, Members voted to agree targets for States income, States net expenditure limits, spending limits for States Funded Bodies, net capital expenditure allocations, allocations for central contingencies and allocations for States Trading Operations.
Key activities now approved as part of the plan include:
- plans to invest a further £26 million annual funding in Health and Social Services
- delivery of the next phase of CSR savings
- £56 million for capital projects in 2013
- additional £14 million for Social Security by 2015
- £5 million to the Innovation Fund to boost business and create jobs through the 'Back to Work' programme
Long term approach
This longer-term approach to budgeting is intended to provide better value for money by allowing departments to plan ahead for service development and improvement, something that will be fundamental to the successful reform of the public sector.
In his speech on 6 November when he presented the proposed Medium Term Financial Plan, Treasury and Resources Minister, Senator Philip Ozouf said “This is a significant change in the way we do things. We are not simply making an administrative change to how we plan our finances, we are taking an important step towards securing our Island’s future. This plan delivers growth in essential services, balanced revenue budgets in all three years and support for the economy, while maintaining the current system of taxation.
“It does so by making careful use of existing resources, by seeing through the final stages of the CSR and by setting out a flexible capital programme that can provide both improved services and fiscal stimulus.
“We are in a unique position to be able to achieve this level of economic stimulus without drawing on strategic reserves or incurring debt. It means we will be able to spend our time doing what matters – serving the community efficiently and providing better value for money.”
Stratetic Plan
The Chief Minister, Senator Ian Gorst, said "The States Strategic Plan set seven bold priorities. The Treasury, and Ministers, have worked hard to apply the resources needed to meet those aims. I am very grateful to all those who worked so hard on this plan, including ministers, especially Treasury, and Scrutiny. This is the new States working for Jersey. I am delighted with the result, now the hard work starts on delivery.”
Senator Ozouf added “During my opening remarks to the Assembly on Tuesday I said I believed the best is yet to come. I repeated that in my closing speech. This plan has been improved by Scrutiny and by the last three days of debate. It is built on solid foundations; it is radical; it is designed to secure jobs and growth and it improves all Islanders’ lives, providing certainty to many community and charity groups.
“I am confident we can achieve these aims and I repeat - I believe the best is yet to come.”
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