Budget transfer from Economic and Productivity Growth Drawdown Provision within Central Contingencies to Chief Minister's Department: Brexit Funding

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A decision made 13 September 2016:

Ministerial decision reference MD-C-2016-0101
Decision summary title EPGDP funding allocation ER01 - Brexit
Decision summary author	Carol Nicholas, Finance Manager - Corporate Group	Is the decision summary public or exempt?		Public
Report title EPGDP funding allocation ER01 - Brexit
Report author or name of person giving report	Carol Nicholas, Finance Manager - Corporate Group	Is the report public or exempt?		Public
Decision and reason for the decision The Chief Minister accepted a budget transfer of up to £135,000 in 2016, up to £724,000 in 2017 and up to £654,000 in 2018 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision within Central Contingencies. 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.
Resource implications The Chief Minister’s Department revenue head of expenditure to increase by 5.0 FTE and up to £135,000 in 2016, up to £724,000 in 2017 and up to £654,000 in 2018 and the Economic and Productivity Growth Drawdown Provision within Central Contingencies to decrease by the same amount. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.
Action required Research and Policy Officer to advise Finance Manager – Corporate Group that this decision has been approved.
Signature			Position Senator I J Gorst Chief Minister

Date signed			Effective date of the decision

Budget transfer from Economic and Productivity Growth Drawdown Provision within Central Contingencies to Chief Minister's Department: Brexit Funding

Chief Minister’s Office

Ministerial Decision Report

EPGDP funding allocation ER01 - Brexit

Purpose of Report

To enable the Chief Minister to accept non-recurring budget transfers of up to £135,000 in 2016, up to £724,000 in 2017 and up to £654,000 in 2018 to the Chief Minister’s Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies.

Background

The United Kingdom’s (UK) unexpected vote to leave the European Union (“Brexit”) has potential consequences for Jersey. It will require a range of responses across government if the Island is to seize upon the opportunities and challenges that may develop.

A business case detailing how government may need to respond to Brexit has been reviewed by the EPGDP Officer Group and was supported politically by the Economic Policy Political Oversight Group. It is not possible to precisely determine how Jersey will be affected by Brexit until more is known about the UK’s future relationship with Europe. Therefore the decision has been taken to ring-fence resources within the EPGDP, a provision that sits within central contingencies, to enable the full range of responses that may be necessary and these funds will be released when there is greater clarity over the UK’s future direction.

In the meantime, some funds are required immediately to ensure that the Island is able to respond to developments as the UK’s relationship with Europe evolves. Therefore funding will be allocated to the External Relations and Financial Services Teams within the Chief Minister’s Department and the Law Officer’s Department. EPGDP funding will enable an expansion in diplomatic engagement with the UK, our European neighbours and any potential new trading partners. Work will also be undertaken to scope the impact that Brexit will have on the Island’s legislation and develop any necessary legislative changes. Funding will be allocated as follows:

	2016	2017	2018	2019	Total
External Relations (CMD)	121,000	604,000	534,000	-	1,259,000
Financial Services (CMD)	14,000	120,000	120,000	-	254,000
Law Officers’ Dept.	13,000	110,000	110,000	-	233,000
Total	148,000	834,000	764,000	-	1,746,000

Any underspends will be assumed to return to the EPGDP unless the Minister for Treasury and Resources identifies a more effective use for the funding.

Recommendation

The Chief Minister is recommended to accept a non-recurring budget transfer of up to £135,000 in 2016, up to £724,000 in 2017 and up to £654,000 in 2018 to the Chief Minister’s Department revenue head of expenditure from the EPGDP within Central Contingencies.

Reasons 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.

Resource Implications

The Chief Minister’s Department revenue head of expenditure will increase by 5.0 FTE and up to £135,000 in 2016, up to £724,000 in 2017 and up to £654,000 in 2018 and the EPGDP within Central Contingences will decrease by the same amounts.

FTE increases are solely for the life of this project and will expire at the end of 2018 or whenever the project comes to an end.

This decision does not change the total amount of expenditure approved by the States for 2016 in the Medium Term Financial Plan.