Co-Funded Payroll Scheme (CFPS) Phase 3: Approval of the variations to the Detriment and Subsidy amounts

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A decision made on 16 November 2020

Decision Reference: MD-TR-2020-0143
Decision Summary Title:	Variations to the CFPS - Phase 3		Date of Decision Summary:	11th November 2020
Decision Summary Author:	Specialist – Business Cases		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Variations to the CFPS - Phase 3		Date of Written Report:	11th November 2020
Written Report Author:	Specialist – Business Cases		Written Report: Public or Exempt?	Public
Subject: Approval of the variations to the Detriment and Subsidy amounts in the Co-Funded Payroll Scheme (CFPS) Phase 3.
Decision(s): The Minister approved an extension to the CFPS to establish Phase 3+ from 1st November 2020 until 31st December 2020. A further extension from 1st January 2021 to 31st March 2021 will be agreed subject to approval of the Lodged Government Plan 2021-2024 by the States Assembly.
Reason(s) for Decision: Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a Government Plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan. The current Policy for Allocations from the Reserve agreed by the Minister for Treasury and Resources on Friday 17th July 2020 sets the requirement for all allocations from the General Reserve (Covid-19) to be referred for review to either the Council of Ministers or the relevant Competent Authorities Ministers and to seek comments from the Principal Accountable Officer (PAO) prior to submission to the Minister for approval. The Minister for Treasury and Resources approved MD-TR-2020-0049, to establish the Co-Funded Payroll Scheme Phase 2 (with £46 million allocated to Customer and Local Services by this decision, a maximum cost of £138 million and further drawdowns to be approved by the Treasurer), and MD-TR-2020-0063 and MD-TR-2020-0100 to extend the scheme until 31st August and 31st December 2020 respectively. The Minister subsequently limited the cost to a drawdown of £125 million in 2020. This variation was approved by the Council of Ministers on the 11th November 2020. The PAO was consulted on the 14th November 2020. Following approval of the variation by the Council of Ministers, the Minister is satisfied that there is an urgent need to provide funding in the public interest and that threats posed to the economy warrant the higher than normally acceptable risks inherent in the extension of the CFPS, including the inevitable dilution of the Scheme’s efficiency. A business case has been appraised by the Investment Appraisal Team and recommended to the Treasurer. Based upon the above, the economic advice, the business case, and having weighed the potential economic benefits against the relative risks, the Treasurer recommends that the Minister agrees the variation of the CFPS to establish Phase 3+. Costs intended to be incurred between January and March 2021 is dependent on the approval of Government Plan 2021-2024.
Resource Implications: The additional costs arising from this decision are forecast to be £7.7m and can be met from the £125m available for the CFPS in 2020. The maximum available funding of £138 million allocated by MD-TR-2020-0049 was reduced by £13 million to a revised maximum funding of £125 million in 2020 by MD-TR-2020-0100.
Action required: Head of Financial Governance to ensure this decision is published on www.gov.je and notify the Head of Finance Business Partnering for Customer and Local Services.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: