Treasury and Resources
Ministerial Decision Report
EPGDP funding allocation ER01 - Brexit
- Purpose of Report
To enable the Minister for Treasury and Resources to approve 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 and up to £13,000 in 2016, up to £110,000 in 2017 and up to £110,000 in 2018 to the Law Officers’ 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 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 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 bids in respect of these funds will be considered for release by the Minister when there is greater clarity over the UK’s future direction. All future funding remains subject to the approval of the MTFP.
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 Officers’ 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.
At their meeting of 7th September 2016, the Council of Ministers recommended to the Minister for Treasury and Resources to agree to allocate 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 and up to £13,000 in 2016, up to £110,000 in 2017 and up to £110,000 in 2018 to the Law Officers’ Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies. The Minister for Treasury and Resources was requested to effect these transfers.
3. Recommendation
Further to the decision of the Council of Ministers on the 7th September 2016, the Minister is recommended to approve 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 and up to £13,000 in 2016, up to £110,000 in 2017 and up to £110,000 in 2018 to the Law Officers’ Department revenue head of expenditure from the EPGDP within Central Contingencies.
4. Reason 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.
The Council of Ministers agreed at their meeting of 7th September 2016 to allocate 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 and up to £13,000 in 2016, up to £110,000 in 2017 and up to £110,000 in 2018 to the Law Officers’ Department revenue head of expenditure from the Economic and Productivity Growth Drawdown Provision (EPGDP) within Central Contingencies. The Minister for Treasury and Resources was requested to effect these transfers.
A decision, MD-C-2016- 0101 was signed by the Chief Minister on 9th September 2016.
5. Resource Implications
The Chief Minister’s Department revenue head of expenditure will increase by non-recurring budget transfer of up to £135,000 in 2016, up to £724,000 in 2017 and up to £654,000 in 2018 and 5.0 FTE.
The Law Officers’ Department revenue head of expenditure to increase by up to £13,000 in 2016, up to £110,000 in 2017 and up to £110,000 in 2018 and 1.0 FTE.
The EPGDP within Central Contingences will decrease by the same amounts.
This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.
Report author : Finance Manager - Corporate Group | Document date 13th September 2016 |
Quality Assurance / Review : Head of Decision Support | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2016-0074 - EDGDP Funding allocation ER |
MD sponsor : |