Chief Minister’s Department
Ministerial Decision Report
EPGDP funding allocation CMD 04 – Financial services review
- Purpose of Report
To enable the Chief Minister to accept a non-recurring budget transfer of up to £900,000 in 2017 to the Chief Minister’s Department for revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies.
- Background
Overview
Following review and recommendation by the EPGDP Officer Group, the Economic Policy Political Oversight Group (EPPOG) recommended that the Treasury Minister should approve funding for proposal CMD 04 Financial Services Review from the EPGDP.
EPGDP funding will enable the Chief Minister’s Department to commission Jersey Finance to conduct a review of the Island’s financial services strategy to take account of changing macroeconomic conditions, in particular in relation to the UK’s decision to leave the European Union and the potential disruptive impact of developments in technology.
The Strategic Review will include a specific focus on the challenges facing the Jersey’s banking sector and will seek to:
- Define Jersey’s positioning towards the UK and the EU;
- Define Jersey’s value proposition as a potential “bridge” for London-based firms into Europe leveraging Jersey’s AIFMD equivalence and other advantages;
- Provide an updated plan on how to master the expected restructuring of the financial sector, including how to respond to the digital trends the sector is facing;
- Suggest means to accelerate efforts to attract flows from emerging markets to reduce the political EU and UK risks;
- Ensure that Jersey remains one of the few preferred centres to locate and operate international banking operations;
- Enable Jersey banks to excel in world-class digital retail and corporate customer services, business system automation, applied analytics and robust cyber-security;
- Support the diversification of Jersey’s banks, through a new business mix which captures a greater share of value added from their deposit base.
Financial Analysis
Description | 2017 |
Strategic Review | £700,000 |
Implementation resources | £200,000 |
Total | £900,000 |
Funding includes £200,000 for the implementation of the recommendations of the Review. However, until the recommendations are available it is not known precisely what level of resource will be required. As a result, this funding will be ring-fenced within the EPGDP and only released subject to EPGDP Officer Group agreement that additional resources are required and the implementation cannot be achieved within existing resources.
An extension to the Partnership Agreement with Jersey Finance will be prepared by the Chief Ministers Department. This will set out the terms and conditions attached to the funding in line with the recommendations of the EPGDP Officer Group, EPPOG and the project’s business case.
Any underspends will be assumed to return to the EPGDP unless the Treasury Minister identifies a more beneficial use for the funding.
3. Recommendation
The Chief Minister is recommended to accept a non-recurring budget transfer of up to £900,000 in 2017 to the Chief Minister’s Department revenue head of expenditure from the EPGDP within Central Contingencies.
4. Reason 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.
5. Resource Implications
The Chief Minister’s Department revenue head of expenditure will increase, on a non-recurring basis, by up to £900,000 in 2017.
The EPGDP within Central Contingences will decrease by the same amount.
This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.
Report author : Finance Manager - Corporate Group | Document date 28 March 2017 |
Quality Assurance / Review : Head of Decision Support | File name and path: |
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