Co-Funded Payroll Scheme (CFPS) Phase 6: Extension: Reserve Funding

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A decision made on 29 October 2021

Decision Reference: MD-TR-2021-0123
Decision Summary Title:	Reserve Funding for CFPS Phase 6		Date of Decision Summary:	29th October 2021
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:	Reserve Funding for CFPS Phase 6		Date of Written Report:	29th October 2021
Written Report Author:	Head of Investment Appraisal		Written Report : Public or Exempt?	Public
Subject: Extension of the Co-Funded Payroll Scheme (CFPS) Phase 6
Decision(s): The Minister: approved an extension to the CFPS Phase 6 for October 2021 approved the changes to the Guidance for the CPFS Phase 6 as documented in the attached report. These changes will take effect from 1st October 2021 and apply to claims made November 2021 in respect of October 2021
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 1st April 2021 sets the requirement that all proposed allocations from the General Reserve (Covid-19), once recommended for approval by the Treasurer of the States, taking into account comments from the Principal Accountable Officer (PAO), are referred for information to either the Council of Ministers (CoM) or the relevant Competent Authorities Ministers (CAM) prior to submission to the Minister for approval. However, it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’ The Minister for Treasury and Resources approved MD-TR-2020-0049, to establish the Co-Funded Payroll Scheme Phase 2, MD-TR-2020-0063 and MD-TR-2020-0100 to extend the scheme until 31st August and 31st December 2020 respectively. In MD-TR-2020-0100 and MD-TR-2020-0168, the Minister indicated an intention for extend the Scheme into 2021 subject to approval by the States Assembly of the Government Plan 2021-24. The Government Plan 2021-24 makes available £11.3 million in the Covid-19 Response Head of Expenditure for the CFPS in 2021. Through MD-TR-2021-0011, the Minister allocated a further £27.6 million to meet the costs of the Scheme in 2021 bring the total balance available in 2021 to £38.9 million. Under MD-TR-2021-0037 the Minister extended the CFPS until 30th June 2021. Through MD-TR-2021-0092 the Minister extended the CFPS until 30th September 2021 and increased the total budget available in 2021 to £42.5 million. Following approval of the extension by the Ministers responsible for the CFPS, the Minister agreed to extend the CFPS Phase 6 on 29th September 2021, this decision documents that agreement and approves the associated Guidance to implement the Scheme. 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 this enhancement of the CFPS, including the inevitable dilution of the Scheme’s efficiency. On the basis of the above, and having considered the available options, taken economic advice, and weighed the relative economic benefits and risks, the Treasurer recommends that the Minister agrees the extension of the CFPS Phase 6 for October 2021 and approves the revised guidance.
Resource Implications: This decision is forecast to increase costs for the CFPS by c.£0.7 million in 2021 under the central scenario. It is expected that these costs can be met from within the £38.9 million that is available for the Scheme in 2021. Given that expenditure on the CFPS is subject to significant uncertainty owing to its link to the underlying performance of the economy, actual costs may be substantially higher or lower.
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: