Fiscal Stimulus Plan: Reversal of previous fiscal stimulus budget allocation to Social Security for extension of transitional relief

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A decision made 27 September 2010 regarding: Fiscal Stimulus Plan: Reversal of previous fiscal stimulus budget allocation to Social Security for extension of transitional relief.

Decision Reference: MD-TR-2010-0138
Decision Summary Title:	Fiscal Stimulus – reversal of budget allocation to Social Security department - transitional relief		Date of Decision Summary:	21st September 2010
Decision Summary Author:	Interim Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Reversal of fiscal stimulus funding for extension of transitional relief		Date of Written Report:	21st September 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: reversal of previous fiscal stimulus budget allocation to the Social Security department for the extension of transitional relief.
Decision(s): The Minister reversed the previous allocation of £1,440,000, awarded to Social Security in MD-TR-2009-0132 and instructed that the funds to remain in the fiscal stimulus allocation for award to another scheme or return to the stabilisation fund on completion of the fiscal stimulus programme overall.
Reason(s) for Decision: The bid to extend transitional relief for 12 months at a cost of £1,440,000 was approved by the Minister on 27th August 2009 following an evaluation to confirm its compliance with the key criteria for fiscal stimulus being timely, targeted and temporary and benefiting local individuals. However, as set out in the accompanying report, the actual cost of transitional relief between October 2009 and July 2010 was significantly lower than Social Security had previously forecast (and on which the original funding decision was made). As a result the department has sufficient existing budget, without contribution from the fiscal stimulus allocation, to fund transitional relief in 2010 and beyond to its cessation in 2015. Now that the department has confirmed the fiscal stimulus funding will not be needed it is necessary to formally reverse the allocation and ensure that the funds remain in the fiscal stimulus allocation for award to another scheme or return to the Stabilisation Fund following completion of the fiscal stimulus programme overall.
Resource Implications: No financial resource implications other than those explained above and in the accompanying report. No manpower resource implications.
Action required: Treasury to be informed of decision to reverse previous authority to transfer £1,440,000 to the Social Security department budget; the funds instead to be retained within the fiscal stimulus funding allocation currently managed as a specific vote in the Consolidated Fund.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: