27 July 2023
The Treasury Minister, Deputy Ian Gorst, has made a decision regarding unspent amounts at the
end of 2022, resulting in the transfer of unspent amounts to the Reserve in 2023 and subsequent
allocation of funds.
This includes formally confirming the planned release of unused amounts
identified in the Government Plan 2023-2026.
As part of the reprofiling of the capital programme, £54 million from the existing capital
programme was reallocated through the Government Plan across the years 2023 to 2026.
An
additional £11.4 million will be carried forward to reflect updated timings of spend on capital
projects, with a further £5.1 million held in reserve due to the uncertainty of cash-flows.
The Government Plan also identified that £23 million of the allocation should be released to meet
the costs of Covid-19, supporting the repayment of all borrowing relating to Covid 19, including
Fiscal Stimulus.
Repayment of this debt was prioritised over transfers to the Stabilisation Fund, and
the improved income position at the end of the year means that transfers may now be possible, in
line with the advice of the Fiscal Policy Panel.
The Minister is considering bringing a proposition to
the States to action this.
Acknowledging anticipated funding pressures for 2023, Deputy Gorst has approved the transfer of
net departmental underspends and unspent sums from 2022 to the Reserve in 2023:
- £15.7 million will be made available to support the estimated costs in 2023 relating to the
tragedies at the end of 2022.
- £6.3 million will be carried forward for departments – primarily the continuation of Covid Recovery Schemes, and the rephasing of spending on specific projects started in 2022.
The General Reserve will also be increased by a further £15.4 million, to compensate for the
reduction in available amount agreed by the States to fund the Jersey Care Model, rather than HIF
transfers.
This allows the reserve to be used for the purposes set out in the Government Plan.
Specific ring-fenced amounts (such as the provision for Assisted Home Ownership) will also be
rolled forward for those same purposes.
This decision confirms the importance of maintaining control over the Reserve to navigate challenging situations and address unforeseen expenditure, including the cost of major incidents.
Treasury Minister Deputy Ian Gorst said: "We have managed a difficult situation, prioritising control
and reserves, while also generating additional income. By being cautious and prudent, we can face
the challenges ahead.
“The Reserve is a key tool in managing the unknown. As we emerge from the pandemic, we have
been able to begin to reduce the level we need to hold in contingency, and we will have an
ongoing focus on strong and prudent financial management by departments to manage
expenditure within their cash-limits."
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