Proposed Budget (Government Plan) 2025-2028 (P.51/2024): Eighteenth Amendment (P.51/2024 Amd.(18) – second amendment

STATES OF JERSEY

PROPOSED BUDGET (GOVERNMENT PLAN) 2025-2028 (P.51/2024): EIGHTEENTH AMENDMENT (P.51/2024 AMD.(18)) – SECOND AMENDMENT

Lodged au Greffe on 19th November 2024 by the Council of Ministers

Earliest date for debate: 26th November 2024

STATES GREFFE

2024  P.51 Amd.(18) Amd.(2)

PROPOSED BUDGET (GOVERNMENT PLAN) 2025-2028  (P.51/2024):

EIGHTEENTH AMENDMENT (P.51/2024 AMD.(18)) – SECOND AMENDMENT

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1  PART 1 –

Substitute the words "An allocation of £66,000 will be made within the Funding for Public Realm budgets" with "Existing resources will be utilised"

2  PART 1 –

After the words "Bridging Island Plan 2022-2025" insert the words ", with the work of the Jersey Youth Parliament Right to Play' Group and of the previous Play Strategy Steering Group to be incorporated into the final Strategy".

 COUNCIL OF MINISTERS

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

1  PAGE 4, PARAGRAPH (o) –

After the words "as set out in the Appendix to the accompanying Report" insert the words –

", except that, on Page 59, after the words "in subsequent Budgets subject to affordability." there should be inserted the following new paragraph –

"Existing resources will be utilised to take forward the work to deliver a Play Strategy for Jersey, in conjunction with the Minister for Children and Families, the  Minister  for  Education  and  Lifelong  Learning,  and  the  Minister  for Sustainable  Economic  Development,  as  detailed  within  Proposal  29  of  the Bridging Island Plan 2022-2025, with the work of the Jersey Youth Parliament Right to Play' Group and of the previous Play Strategy Steering Group to be incorporated into the final Strategy."

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 2025 – 2028 (entitled "Budget 2025-2028") 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 2025 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 approve the proposed Changes to Approval for financing/borrowing for 2025, 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 approval amounts.
3. to approve the transfers from one States fund to another for 2025 of up to and including the amounts set in Appendix 2 – Summary Table 3 in line with Article 9(2)(b) of the Law.
4. to approve a transfer from the Consolidated Fund to the Stabilisation Fund in 2025 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 31st December 2024 in excess of the estimates provided in this plan, or from budgeted underspends identified before 31st December 2025.
5. to approve a transfer from the Consolidated Fund to the Agricultural Loans Fund in 2025 of up to £2 million, subject to a decision of the Minister for Treasury and Resources based on availability of funds in the Consolidated Fund as at 31st December 2024 in excess of estimates provided in this plan, or from budgeted underspends identified before 31st December 2025;
6. to approve each major project that is to be started or continued in 2025 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.
7. to approve the proposed amount to be appropriated from the Consolidated Fund for 2025, 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.
8. to  approve  the  estimated  income,  being  estimated  gross  income  less expenditure, that each States trading operation will pay into its trading fund in 2025 in line with Article 9(2)(h) of the Law and set out in Appendix 2 – Summary Table 6 to the Report.
9. to approve the proposed amount to be appropriated from each States trading operation's trading fund for 2025 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.
10. to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2025 as set out in Appendix 2 – Summary Table 8 to the Report.
11. to approve an updated and consolidated policy of the Strategic Reserve Fund as follows:

"The Strategic Reserve Fund, established in accordance with the provisions of Article 4 of the Public Finances (Jersey) Law 2005, is a permanent reserve only to be used:

1. in exceptional circumstances  to  insulate  the  Island's  economy  from severe structural decline such as the sudden collapse of a major Island industry or from major natural disaster.
2. if necessary, for the purposes of providing funding (up to £100 million) for the Bank Depositors Compensation Scheme established under the Banking  Business  (Depositors  Compensation)  (Jersey)  Regulations 2009, including to meet the States contribution to the Scheme and/or to meet any temporary cash flow funding requirements of the Scheme.
3. to  support  the  development  of  future  healthcare  facilities  and  the borrowing costs for such work, in line with a financing strategy agreed by the Assembly;
4. as a holding fund for any or all monies raised through external financing until required, and for any monies related to the repayment of debt raised through external financing used to offset the repayment of debt, as and when required; and
5. in accordance with Article 24 of the Public Finances (Jersey) Law 2019, where the Minister for Treasury and Resources is satisfied that there exists an immediate threat to the health or safety of any of the inhabitants of Jersey, to the stability of the economy in Jersey or to the environment, for which no other suitable funding is available."

12. to approve the transfer to the Strategic Reserve of the amounts due as a result of the move from prior-year basis taxation after 31st December 2025, as and when these payments are received (estimated at £280 million).
13. in relation to the new Government Headquarters (office), to approve;

1. the exercising of the option to acquire the new Government Headquarters (estimated at £91 million), by the Public of the Island, in line with the pre-agreed terms; and
2. the acquisition of the new Government Headquarters as an investment of the Social Security (Reserve) Fund (including authorising the meeting of expenses incurred in connection with the acquisition); and
3. the subsequent leasing of the new Government Headquarters by the Public of the Island from the Social Security (Reserve) Fund, with commercial terms to be agreed between the Minister for Infrastructure (on behalf of the Public) and Minister for Social Security and the Minister for Treasury and Resources (both on behalf of the Fund); and

14. in relation to the new Government Headquarters, to authorise H.M. Attorney General, the Greffier of the States, the Ministers for Infrastructure, Social Security and Treasury and Resources, and the Public of the Island, to enter into such arrangements, including financing, and pass any contracts as are necessary to put into effect paragraph (m).
15. to approve, in accordance with Article 9(1) of the Law, the Government Plan 2025-2028, as set out in the Appendix to the accompanying Report, except that, on Page 59, after the words "in subsequent Budgets subject to affordability." there should be inserted the following new paragraph –

REPORT

The Council of Ministers recognise the importance of the Play Strategy, as set out by the Deputy Gardiner 's amendment.

However, rather than specifically allocate £66k for one FTE Officer, the Council of Ministers instead consider it best to commit to ensuring that existing resources are made available to deliver a Play Strategy for Jersey. The first part of the Council of Ministers' amendment seeks to address this point.

The second part of this amendment seeks to implement P.51 Amd.(18) Amd., as lodged by Deputy L.M.C. Doublet of St. Saviour . The Council of Ministers agree with the Deputy 's amendment and would want to see Amendment 18 adopted as amended by both by Deputy Doublet 's amendment and their own.

If Deputy Gardiner agrees with this amendment, the Council of Ministers intends to debate the Budget as amended by both Amd. 18 and this amendment.

Financial and staffing implications

As identified by this amendment, any financial and staffing implications will be borne from existing budgets.

Children's Rights Impact Assessment

A Children's Rights Impact Assessment (CRIA) has been prepared in relation to this proposition and is available to read on the States Assembly website.