Co-Funded Payroll Scheme (CFPS) Phase 5: Reserve Funding

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A decision made on 1 April 2021

Decision Reference: MD-TR-2021-0037
Decision Summary Title:	Reserve Funding for CFPS Phase 5		Date of Decision Summary:	1st April 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 5		Date of Written Report:	1st April 2021
Written Report Author:	Head of Investment Appraisal		Written Report : Public or Exempt?	Public
Subject: Approval of the Co-Funded Payroll Scheme (CFPS) Phase 5
Decision(s): The Minister: approved an extension to the CFPS to establish Phase 5 from 1st May 2021 until 30th June 2021; approved changes to the Guidance for the CPFS Phase 4 as documented in the attached report. These changes will take effect from 1st April 2021 and apply to claims made in respect of March and future months; and agreed that these changes will be funded from unspent allocations previously approved for the CFPS in 2021.
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 Policy for Allocations from the Reserve agreed by the Minister for Treasury and Resources on Friday 17th July 2020 sets the requirement for all allocations from the General Reserve (Covid-19) once approved by the States Treasurer to be referred for review to either the Council of Ministers or the relevant Competent Authorities Ministers and to seek comments from the Principal Accountable Officer (PAO) prior to submission to the Minister for approval. A business case has been recommended by the Investment Appraisal Team (IAT). The revisions to the CFPS Phase 4 as set out in the attached guidance, and extension of the Scheme to establish Phase 4 was agreed by the Competent Authorities Ministers and the Ministers responsible for the CFPS on 31st March 2021. Based upon the above, the economic advice, the business case, and after having weighed the relative economic benefits and risks, the Treasurer recommends that the Minister agrees the extension of the CPFS to establish Phase 5, and approves the proposed changes to the guidance for CFPS Phase 4. 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. Following approval of the extension by the Competent Authorities Ministers and the Ministers responsible for the CFPS, the Minister is satisfied that there is a need to provide funding in the public interest and that threats posed to the economy warrant the higher than normally acceptable risks inherent in the extension of the CFPS, including the inevitable dilution of the Scheme’s efficiency. Under delegation from the Principal Accountable Officer the Treasurer appoints the Director General of customer and Local Services as the Accountable Officer for this expenditure allocation and that made by MD-TR-2021-0011.
Resource Implications: This decision is forecast to increase costs for the CFPS by £4.8 million in 2021 under the central scenario. It is expected that these costs can be met from within the £38.9 million that is available for the Scheme in 2021. Given that expenditure on the CFPS is subject to significant uncertainty owing to its link to the underlying performance of the economy, actual costs may be substantially higher or lower.
Action required: Head of Financial Governance to ensure this decision is published on www.gov.je and notify the Head of Finance Business Partnering for Customer and Local Services.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: