Proposed Government Plan 2024-2027 (P.72/2023): twelfth amendment (P.72/2023 Amd.(12)) – amendment.

STATES OF JERSEY

PROPOSED GOVERNMENT PLAN 2024- 2027 (P.72/2023): TWELFTH AMENDMENT (P.72/2023 AMD.(12)) – AMENDMENT

VALUE FOR MONEY SAVINGS

Lodged au Greffe on 5th December 2023 by the Council of Ministers

STATES GREFFE

2023  P.72 Amd.(12).Amd.

PROPOSED GOVERNMENT PLAN 2024-2027 (P.72/2023): TWELFTH

AMENDMENT (P.72/2023 AMD.(12)) – AMENDMENT

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1  PAGE 2, PARAGRAPH (l) –

After the words "as set out in S.R.20/2022", insert the words " a report published alongside the annual report and accounts will –", and delete the words "all subsequent Government Plans will – "; and

Delete  sub-paragraph  (i)  and  redesignate  the  subsequent  sub-paragraphs accordingly.

COUNCIL OF MINISTERS

Note:  After this amendment, the twelfth amendment would read as follows – 1  PAGE 2, PARAGRAPH (l) –

After the words "Appendix 3 to the Report" insert the words -

", except that, on page 57 after Table 16, there should be inserted the following new paragraph –

In accordance with the recommendations of the Corporate Services Scrutiny Panel, as set out in S.R.20/2022, a report published alongside the annual report and accounts will –

1. include a report on all Value for Money savings which were made during the duration of the previous Government Plan; and
2. identify and provide full details of the monitoring process that has been undertaken on the Value for Money programme during the duration of the previous Government Plan."

Note:  After this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

to receive the Government Plan 2024 – 2027 specified in Article 9(1) of the Public Finances (Jersey) Law 2019 ("the Law") and specifically –

1. to approve the estimate of total States income to be paid into the Consolidated Fund in 2024 as set out in Appendix 2 – Summary Table 1 to the Report, which is inclusive of the proposed taxation and impôts duties changes outlined in the Government Plan, in line with Article 9(2)(a) of the Law;
2. to refer to their Act dated 30th September 2016 and to approve the application of existing resources for work on the development of user pays' charges in relation to all aspects of waste, including commercial and domestic liquid and solid waste;
3. to approve the proposed Changes to Approval for financing/borrowing for 2024, as shown in Appendix 2 – Summary Table 2 to the Report, which may be obtained by the Minister for Treasury and Resources, as and when required, in line with Article 9 (2)(c) of the Law, of up to those revised approvals;
4. to approve the extension of the use of the existing Revolving Credit Facility to include the provision of funds that would otherwise be implemented through bank overdraft or bank overdraft facilities under Article 26 (1)(a) of the Law, should  they  be  needed,  subject  to  the  limits  outlined  in  that  article;
5. to approve the transfers from one States fund to another for 2024 of up to and including the amounts set in Appendix 2 – Summary Table 3 in line with Article 9(2)(b) of the Law;
6. to approve a transfer from the Consolidated Fund to the Stabilisation Fund in 2024 of up to £25 million, subject to a decision of the Minister for Treasury and Resources based on the availability of funds in the Consolidated Fund as at 31 December 2023 in excess of the estimates provided in this plan, or from budgeted underspends identified before 31 December 2024;
7. to approve each major project that is to be started or continued in 2024 and the total cost of each such project and any amendments to the proposed total cost of a major project under a previously approved Government Plan, in line with Article 9(2)(d), (e) and (f) of the Law and as set out in Appendix 2 - Summary Table 4 to the Report;
8. to approve the proposed amount to be appropriated from the Consolidated Fund for 2024, for each Head of Expenditure, being gross expenditure less estimated income (if any), in line with Articles 9(2)(g), 10(1) and 10(2) of the Law, and set out in Appendix 2 – Summary Tables 5(i) and (ii) of the Report;

9. to  approve  the  estimated  income,  being  estimated  gross  income  less expenditure, that each States trading operation will pay into its trading fund in 2024 in line with Article 9(2)(h) of the Law and set out in Appendix 2 – Summary Table 6 to the Report;
10. to approve the proposed amount to be appropriated from each States trading operation's trading fund for 2024 for each head of expenditure in line with Article 9(2)(i) of the Law and set out in Appendix 2 – Summary Table 7 to the Report;
11. to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2024 as set out in Appendix 2 – Summary Table 8 to the Report; and
12. to approve, in accordance with Article 9(1) of the Law, the Government Plan 2024-2027, as set out at Appendix 3 to the Report, ", except that, on page 57 after Table 16, there should be inserted the following new paragraph –

In accordance with the recommendations of the Corporate Services Scrutiny Panel, as set out in S.R.20/2022, a report published alongside the annual report and accounts will –

1. include a report on all Value for Money savings which were madeduring the duration of the previous Government Plan; and
2. identify and provide full details of the monitoring process that has been undertaken on the Value for Money programme during the duration of the previous Government Plan."

REPORT

The Council of Ministers is proposing to accept part of this amendment to ensure that the performance of the Value for Money is reported on in a transparent manner. However, this is far better suited to reporting in the Annual Report and Accounts rather than a Government Plan.

The Government Plan is drafted during the summer and lodged in September. The year for which reporting is requested would therefore not have finished, and therefore any reporting on VFM would be consequently incomplete. Reporting in the ARA allows for a full year of savings to be reported and will avoid the confusion partial reporting is likely to cause.

It is proposed to remove the part of the amendment that requires each Government Plan to "clearly distinguish the specific areas and projects to which Value for Money savings are attached".

Value for Money savings have been included at a low level (~1%) where departments will be able to deliver them through delivery of efficiencies that can be developed in year. Accountable Officers should be held accountable for this delivery, but must also be empowered to deliver. The exact manner in which these savings are manifested may need to be determined in the year (for example options may be explored and the best selected).

The level of detail requested in a Government Plan is likely to cause a substantial administrative burden, actually reducing the likelihood of savings being delivered as resources are diverted into a bureaucratic process.

Financial and staffing implications

There are no additional financial or staffing implications, but this amendment will reduce the impact of the original amendment on government resources.