Budget transfer from Economic and Productivity Growth Drawdown Provision within Central Contingencies to Department for External Relations

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A decision made 23 March 2018:

Decision Reference: MD-TR-2018-0033
Decision Summary Title:	EPGDP Funding ER01- Brexit 2019		Date of Decision Summary:	13th March 2018
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	EPGDP Funding ER01- Brexit 2019		Date of Written Report:	13th March 2018
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: A non-recurring transfer of up to £1,073,000 in 2019 from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies to the Department for External Relations revenue head of expenditure.
Decision(s): The Minister approved a non-recurring transfer of up to £1,073,000 in 2019 from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies to the Department for External Relations revenue head of expenditure. In addition, the Minister approved the extension of the following temporary FTEs until 31 December 2019: - 5.0 FTE in the Department for External Relations - 1.0 FTE in the Chief Minister’s Department - 1.0 FTE in the Law Officers’ Department - 3.0 FTE in the Department for Community and Constitutional Affairs
Reason(s) 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. The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from the Economic and Productivity Growth Drawdown Provision (EPGDP) to be considered by the EPGDP Officer Group and the Economic Policy Political Oversight Group (EPPOG). The EPGDP Officer Group recommended this funding on 4 August 2016. The EPPOG recommended the funding on 26 August 2016. The EPGDP Officer Group further recommended that all funding be transferred to the Department for External Relations revenue head of expenditure at its meeting on 9th March 2018. To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States.
Resource Implications: The Department for External Relations revenue head of expenditure will increase by up to £1,073,000 in 2019. 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 for 2017-2019 in the Medium Term Financial Plan. Department FTE budgets in 2019 to increase on a temporary basis until 31 December 2019 as follows: - Department for External Relations by 5.0 FTE - Chief Minister’s Department by 1.0 FTE - Law Officers’ Department by 1.0 FTE - Department for Community and Constitutional Affairs by 3.0 FTE This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Policy and Research Officer – Chief Minister’s Department once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Economic and Productivity Growth Drawdown Provision within Central Contingencies to Department for External Relations

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Treasury and Resources

Ministerial Decision Report

EPGDP funding ER 01 – Brexit 2019

Purpose of Report

To enable the Minister for Treasury and Resources to approve a non-recurring budget transfer to the Department for External Relations revenue head of expenditure of up to £1,073,000 in 2019 from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies.

Background

Overview

In 2016, following a review by the EPGDP Officer Group, the Economic Policy Political Oversight Group (EPPOG) recommended that the Minister for Treasury and Resources should approve funding for business case ER01 – Brexit from the EPGDP. This sought to provide funding for the following departments between September 2016 and December 2019:

- Chief Minister’s Department

- Department for External Relations

- Law Officers’ Department

- Department for Community and Constitutional Affairs

- Department for Economic Development, Tourism, Sport and Culture

At that time, there was significant uncertainty surrounding Brexit and the implications it would have for Jersey. Accordingly, the Minister for Treasury and Resources determined that all the funding identified in the business case ER01 – Brexit would be ring-fenced and ministerial decisions enabling funding to be drawn down would be approved when the need for additional resources arose. At the same time, it was agreed that funding would only be made available up to and including 2018 until it was clear that the Brexit process would continue into 2019.

In light of the UK Government’s position to pursue transitional arrangements before fully withdrawing from the European Union, it is now known that the Brexit process will continue into 2019 and likely beyond. Accordingly, the resources identified in business case ER01 – Brexit for 2019 will be required.

In order to strengthen financial oversight and allow for greater flexibility in the allocation of funding between departments, the 2019 budget will be transferred to the Department for External Relations and subsequently assigned to departments.

FTE Analysis

Some of the funding made available will support an extension of fixed term appointments into 2019. The following temporary FTEs will continue until 31 December 2019:

Department	FTE
External Relations	4.0
Chief Minister's	1.0
Law Officers’.	1.0
Community and Constitutional Affairs	3.0
Total	9.0

3. Recommendation

The Minister is recommended to approve a non-recurring transfer of up to £1,073,000 in 2019 from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies to the Department for External Relations revenue head of expenditure.

The Minister is recommended to approve the extension of the following temporary FTEs until 31 December 2019:

- 5.0 FTE in the Department for External Relations

- 1.0 FTE in the Chief Minister’s Department

- 1.0 FTE in the Law Officers’ Department

- 3.0 FTE in the Department for Community and Constitutional Affairs

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.

The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from the Economic and Productivity Growth Drawdown Provision (EPGDP) to be considered by the EPGDP Officer Group and the Economic Policy Political Oversight Group (EPPOG).

The EPGDP Officer Group recommended this funding on 4 August 2016. The EPPOG recommended the funding on 26 August 2016.

The EPGDP Officer Group further recommended that all funding be transferred to the Department for External Relations revenue head of expenditure at its meeting on 9th March 2018.

To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States.

5. Resource Implications

The Department for External Relations revenue head of expenditure will increase by up to £1,073,000 in 2019. The EPGDP within Central Contingences will decrease by the same amounts.

Department FTE budgets in 2019 to increase on a temporary basis until 31 December in 2019 as follows:

- Department for External Relations by 5.0 FTE

- Chief Minister’s Department by 1.0 FTE

- Law Officers’ Department by 1.0 FTE

- Department for Community and Constitutional Affairs by 3.0 FTE

This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 13 March 2018
Quality Assurance / Review : Director of Financial Planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2018-0033 - C27 EPDGP Funding Allocation to Depts £1,073k - BREXIT
MD sponsor : Treasurer of the States