Co-Funded Payroll Scheme Phase 3: Approval of the extension

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 31 July 2020

Decision Reference: MD-TR-2020-0100
Decision Summary Title:	Extension of the CFPS - Phase 3		Date of Decision Summary:	31st July 2020
Decision Summary Author:	Head of Investment Appraisal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Extension of the CFPS - Phase 3		Date of Written Report:	31st July 2020
Written Report Author:	Head of Investment Appraisal		Written Report : Public or Exempt?	Public
Subject: Approval of the extension of the Co-Funded Payroll Scheme (CFPS) to establish Phase 3
Decision(s): The Minister approved an extension to the CFPS to establish Phase 3 from 1st September 2020 until 31st December 2020. It is intended that a further extension from 1st January 2021 to 31st March 2021 will be proposed in the Government Plan 2021-2024. The Minister also approved changes to the Guidance for the CPFS Phase 2 as documented in the attached report. These changes will take effect from 1st August 2020 and apply to claims made in respect of August and future months. The Minister instructed the Treasurer of the States not to authorise drawdowns of funding that would exceed a total of £125 million in 2020.
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) once approved by the States Treasurer 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 to extend the scheme until 31st August 2020. This extension was approved by the Council of Ministers on the 30th July 2020. The PAO was consulted on the 29th July 2020. Following approval of the extension 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 after having weighed the relative economic benefits of the options and the respective, relative risks, the Treasurer recommends that the Minister agrees the extension of the CPFS to establish Phase 3, and the proposed changes to the guidance for CFPS Phase 2. Costs intended to be incurred between January and March 2021 will need to be agreed by the States Assembly through the Government Plan 2021-2024.
Resource Implications: This decision is forecast to increase costs for the CFPS by between £21 million and £38 million in 2020. It is expected that these costs can be met from within the £138 million that has already been allocated to deliver the CFPS, which the Minister is now limiting to £125 million in 2020. The effect of this decision is to limit spending on the CFPS. The maximum available funding of £138 million allocated by MD-TR-2020-0049 is reduced by £13 million to a revised maximum funding of £125 million in 2020.
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: 31st July 2020		Date of Decision: 31st July 2020