Co-Funded Payroll Scheme (CFPS) for December 2021 and January 2022: Reserve Funding

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A decision made on 22 December 2021

Decision Reference: MD-TR-2021-0155
Decision Summary Title:	Reserve Funding for CFPS Phase 7		Date of Decision Summary:	22nd December 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 7		Date of Written Report:	22nd December 2021
Written Report Author:	Head of Investment Appraisal		Written Report: Public or Exempt?	Public
Subject: Approval of the reintroduction of the Co-Funded Payroll Scheme (CFPS) for December 2021 and January 2022
Decision(s): The Minister approved the reintroduction of the CFPS for claims made in respect of December 2021 and January 2022.
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 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, through MD-TR-2021-0092. The current Policy for Allocations from the Reserve, presented to the States Assembly as R.60/2021, sets the requirement that all allocations from the General Reserve are recommended for approval by the Treasurer of the States, taking into account comments from the Principal Accountable Officer (PAO), prior to submission to the Minister for approval. Due to the urgent need to provide additional support, it has not been possible to prepare a suitable business case for this variation to the CFPS. Given the approval of the amendment by the Competent Authorities Ministers and Ministers responsible for the CFPS, 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 reintroducing the CFPS, including risks surrounding the Scheme’s efficiency and effectiveness. Accordingly, the Minister has instructed officers to implement the changes approved by Ministers on 21st December 2021. On the basis of the above and the likely estimated costs, the Treasurer recommends existing allocations made to the Covid-19 Response Head of Expenditure for the purposes of the CFPS are the most appropriate source of funding.
Resource Implications: The additional costs arising from this decision are forecast to be £500,000 in 2021 under the central scenario and can be met from the remaining balance of £7.9 million available from allocations made under MD-TR-2021-0011 and MD-TR-2021-092. Costs in January 2022 are also estimated at £500,000 under the central scenario and will be met from the Covid-19 Response Head of Expenditure. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-24 or the Government Plan 2022-25.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering for FSDEE that this decision is approved.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed: 22 December 2021		Date of Decision: 22 December 2021