Fiscal Stimulus Package direct payments and vouchers: Reserve funding

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A decision made on 21 July 2020

Decision Reference: MD-TR-2020-0090
Decision Summary Title:	Reserve funding for Fiscal Stimulus Package: Direct Payments and Vouchers		Date of Decision Summary:	20th 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:	Reserve funding for Fiscal Stimulus Package: Direct Payments and Vouchers		Date of Written Report:	20th July 2020
Written Report Author:	Head of Investment Appraisal		Written Report : Public or Exempt?	Public
Subject: Reserve funding for Customer and Local Services as part of the Fiscal Stimulus Package
Decision(s): The Minister approved an allocation from the General Reserve in 2020 of £12.3 million to Customer and Local Services for Direct Payments and Voucher / pre-paid card scheme as part of the Government of Jersey’s Fiscal Stimulus Package.
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 Procedures on Allocations from the Reserve (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer 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 Fiscal Stimulus Package was proposed to the Council of Ministers and approved on the 8th July 2020. Following approval of the Fiscal Stimulus Package by the Council of Ministers, the Minister is satisfied that there is an urgent need to provide funding in the public interest and that the threat of prolonged economic downturn and its impacts warrant the higher than normally acceptable risks inherent in the proposed measures being taken and accordingly accepts those risks A business case has been developed and appraised by the Investment Appraisal Team. On the basis of the above regarding risk, the Treasurer recommends to the Minister, the allocation of £12.3 million for the direct payments to low income families and the voucher/pre-paid card schemes proposed. subject to reviews of the scheme before any future extension and an expiry date of 30 November for the voucher/card scheme. The Treasurer concurs with advice that a strong and effective communications strategy would reduce the risks associated with these schemes. The case for the Fiscal Stimulus Fund and reduced Social Security will be made in propositions to the States Assembly.
Resource Implications: The head of expenditure for Customer and Local Services will increase by £12.3 million in 2020. The balance of the General Reserve will decrease by the same amount.
Action required: Head of Financial Governance to ensure this decision is published on www.gov.je and notify the Heads of Finance Business Partnering for Customer and Local Services.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed: 21st July 2020		Date of Decision: 21st July 2020