Mid-year Review: Government Plan 2021-2024

Mid-Year Review 2021

Government Plan 2021-24

R.138-2021 (re-issue)

1

Contents

Chief Minister s foreword  5 Minister for Treasury and Resources foreword 8

Introduction 10 1 Progress of Government Plan  13

Progress report 12 2 RIPfnoretrorwobgadraerudlsacsftn riuoocpnmidna2gt0e 2p f0oror 2g0 ra21 mme 111594

Departmental rebalancing measures 23

Progress update for measures carried  35

3 GIInntcoroovmdeuercnatimnodne enx tp efin nd ait nur ce e - s highlights 445807

General revenue income full year forecast 51 Net revenue Expenditure 54 Covid-19 response 71 Reserves 73 Fiscal stimulus 75 Trading operations 76 Projects - highlights 77 Social Security funds 79 Investment performance 80

Appendices 82

Appendix 1: Fiscal stimulus projects identified 83 Appendix 2: Detail of forecast spend against cumulative  84

Government Plan growth allocations by department

Appendix 3: Covid-19 pressures 87 Appendix 4: Reconcilliations of Government Plan budget as at  88

30 June

Appendix 5: Key to abbreviations 89

Chief Minister foreword

Senator John Le FondrØ Chief Minister

The six months covered by this report mark

the progress of the Government and the Island through our Reconnection Roadmap, to a position where we are living with Covid-19 and managing it safely as part of our daily lives.

In financial terms, we began 2021 in a very good position, with a £70 million increase on income expected over forecasts made in Autumn 2020 and the Social Security (Reserve) Fund and Strategic Reserve Fund having grown by £275.9 million in the past 6 months.

While Coronavirus has dominated the work of Government departments through early 2021, and is reflected in the contents of this report, I am very pleased to confirm that we have continued to make strong progress against our Common Strategic Priorities, and in ensuring that we meet the challenges of implementing long-term capital projects and the need for financial rebalancing.

This Government remains committed to putting children first, and this is especially important given the detrimental impact of Covid-19 on our youngest citizens.

The Covid-19 Wellbeing and Recovery programme is on track to be delivered by the end of 2021 and has provided funding to manage the immediate effects of Covid-19 on children and young people s mental health, including providing temporary staff to manage the backlog of cases in CAMHS. We also have invested in supporting teachers in schools through targeted training and coaching as part of the Schools Catch-Up programme.

The project established to strengthen Early Help in Jersey has completed, and recruitment is underway to build the Family and Community Support Service to deliver early help to children, young people and families; addressing the Jersey Care Commission s 2019 recommendations for the development of early help services.

Health and Community Services were at the core of our response to Covid-19, and the programme to vaccinate eligible Islanders against Covid-19 is on track with 82% of all adult Islanders aged over 18 already fully vaccinated. Financially the project is also forecast to be delivered below the cost approved in the Government Plan 2021-2024.

The Nightingale Wing has now been decommissioned and all medical equipment and furniture from the site has been reallocated to areas within Health and Community Services (HCS) who can either utilise it or store it

safely.

Work has begun on the development of the Jersey Care Model and the HCS Change Team has been restructured and extended to support its delivery, alongside the co-design and implementation of new governance structures.

Early 2021 has also seen significant work in a number of areas in preparation for Our Hospital. Acquiring the land to deliver a hospital at Overdale is well underway, the States Assembly has approved the Westmount Road as the preferred primary access route, and design solutions are currently being developed.

The staff within Justice and Home Affairs (JHA) have also been integral to our Covid-19 response through the provision of PCR testing and contact tracing. On-Island Testing Capacity is fully operational, and the service is accommodating the demand and managing the fluctuations in capacity required.

With the ongoing impacts of Covid-19, the practical implications of Brexit on our Island can sometimes be overlooked. Nonetheless, good progress has be made by JHA in appointing customs staff to support legislative changes to the new UK immigration plan for 2021, and on developing a new passport system, including an online portal and self-service, which will replace the current system.

Work has also continued on the creation of a Combined Control Room for all three emergency services, enabling them to better report, monitor and respond to all emergencies in Jersey, with a new telephony and team structure on track to deliver in 2021.

Customer and Local Services have continued to manage the impact

of Covid-19 on our most vulnerable Islanders. Additional funding was allocated to support the anticipated increase in Income Support costs due to the pandemic, with Islanders either losing their jobs or having their working hours reduced. And 10,800 monthly claims have been accepted during phases 3 to 5 of the Payroll Co-Funding Scheme, paying out a total of £30.6 million up to the end of June 2021.

Work has also continued on the critical development of a new Migration Policy to deliver more responsive controls over who can live, work and access public services in Jersey. Alongside this, work has begun to scope necessary IT support for the new migration controls and provide improved management information on the migrant workforce and the permissions held by businesses.

Infrastructure, Housing and Environment have continued to support major capital projects alongside the decommissioning of the Nightingale Wing, including work throughout the Island s waste, roads and sewage networks.

With renewed focus on the future of Fort Regent, good progress has been made so far in 2021, with the Inspiring Active Places website launching in March, the consultation having taken place with the clubs at Fort Regent,

and a decant plan for them is in the process of being developed.

Within the Office of the Chief Executive, the Economy Department have implemented a range of business support packages, including the Visitor Attraction and Events Support, Fixed Costs Support Scheme, Visitor Accommodation Support Scheme, and additional support to individual small and medium businesses impacted by Covid-19.

Cornerstone objectives have been established for the new Economic Framework, around supporting businesses that are resilient and productive, where households are resilient and share in growth, with an economy working within environmental limits, understanding and delivering the right skills for the future, whilst promoting the Islands international reputation.

External Relations have established new cross-government structures to ensure we can input effectively into the UK Government s new programme of trade negotiations, and that the Trade and Cooperation Agreement (TCA) is implemented in line with Jersey s interests.

And the Minister for International Development, Deputy Carolyn Labey , has launched her important consultation on Island Identity, which will form the basis of measures that foster a shared understanding of Island citizenship and belonging, including the production of accessible resources for

teaching and demonstrating our unique identity.

Outside the management of the immediate impacts of Covid-19, the central work of Government on generating efficiencies and ensuring

the most effective delivery of quality public services has continued apace. A key milestone, achieved during the first half of 2021, was the contractual agreement on the development of a consolidated office HQ for Government a project which has finally been unlocked after 10 years of delay.

Within Treasury and Exchequer, the Finance Transformation Programme is making good progress and a new Head of Zero Based Budgeting has been recruited to oversee this project. A portfolio management office function (PMO) has been set up which will improve delivery of projects of capital spending and programmes and to provide Senior Leadership with better oversight

The Building Revenue Jersey Programme has also continued to consolidate the new back-office computer system which will allow us to take advantage of the efficiencies gained from our second year of online personal income tax returning.

Within the Chief Operating Office, the restructuring of Commercial

Services has continued, as has the development of the Integrated Technology Solution (ITS). ITS is the largest business change programme the Government has undertaken and will allow us to deliver and sustain our vision of transforming public services for the benefit of colleagues, suppliers and Islanders. In May 2021 the programme entered the Design stage of the first release which will provide new finance and commercial systems.

And within Strategic Policy, Planning and Performance, officials have continued to providing policy development support and direction for all Departments, including on the creation of the Adult Safeguarding Improvement Plan and Island Plan Review.

I welcome the solid progress made by all Departments demonstrated within this Mid-Year Report, and thank the officials working across Government for their continued commitment, dedication and persistence in meeting the Common Strategic Priorities, alongside the effective management of Covid-19.

We have faced a challenging six months as we manage the continued impacts of the pandemic. But the Council of Ministers are committed to taking long-term decisions, which include capital investment and structural financial changes that benefit the Island, its community and future generations. These will be reflected in the forthcoming Government Plan 2022-2025, which I look forward to bringing to the States Assembly this Autumn.

Minister for Treasury and Resources foreword

Deputy Susie Pinel Minister for Treasury  and Resources

The first six months of 2021 have once again been dominated by Covid-19, and we have continued to support Islanders and our economy through a wide range of measures, such as the Co-Funded Payroll Scheme, maintaining air connectivity and the test and trace programme.

In total, for the year up to June, we ve spent £63m on these measures, helping many businesses and their employees through these particularly challenging times. A number of the schemes have been extended several times as we have responded to the demands of the pandemic and where health restrictions remain, we ll continue to provide funding for as long as is necessary.

We have also been focused on how we can start to help the economy to recover from the effects of Covid-19, with our Fiscal Stimulus Fund financing a wide range of schemes that had to meet the criteria of being targeted, temporary and timely. We have announced funding totalling £29.6 million for 47 projects across the Island. Over the coming months we will start to see them being delivered.

Looking specifically at our finances, the Income Forecasting Group s (IFG) Spring income forecast was £74m higher than for Autumn 2020, but it is still £38m lower than the Autumn 2019 forecast. The improvement in our income forecasts is helping to reduce our overall deficits and reduce the amount we need to rely upon debt.

I am pleased that there has been a limited draw down on the £500 million Revolving Credit Facility agreed in 2020. So far this year we have drawn down £25 million to address the impact on public finances arising from the pandemic and to support businesses and we will draw up to £29.6 million for the approved Fiscal Stimulus Fund allocations.

The year-end forecast for Covid-19 costs is currently estimated at up to £126 million, considerably less than the £190 million spent last year. However, there are still significant pressures on our budgets. From our experience of the pandemic, we will continue to face challenges in containing the costs associated with responding to Covid-19 and its longer-term consequences, while also delivering the investment set out in the Government Plan and the rebalancing measures that are needed to help fund this spending.

Following on from a good performance last year, our investment returns in the first half of this year have remained strong, which is also helping to maintain the strength of our reserves. The return on the Common

Investment Fund was 8.7% up to the end of June and 8.3% annualised over three years to June, which exceeds the benchmark of 7.4%.

As happened in 2020, net expenditure across departments is being managed in part by cancelling the Grant to the Social Security Fund, known as supplementation and £95 million has been transferred from the Social Security Reserve Fund to the Social Security Fund. This again shows how our strong asset position is being used to help address the pressures

on our finances arising from the pandemic.

While there is still some uncertainty around the impact of Covid-19 on the local and global economy, there are positive signs that earnings and economic activity have not been impacted as severely by the pandemic as was initially projected.

The Personal Income Tax forecast in the current IFG update was £42 million higher than their Autumn 2020 forecast. Last year s move to put all taxpayers onto Current Year Basis was a significant step in modernising our tax system and although taxpayers will be able to pay their 2019 prior year debt over 20 years, we have already seen nearly £7 million of this debt being paid.

There are also higher forecasts for both Imp ts and Stamp Duty; to the end of June, Imp ts were £3 million higher than for the same period in 2020 (£32.6 million vs £29.6 million), with most of this increase coming from the sale of tobacco and fuel, while the number of property transactions

so far this year is at its highest since 2017. Up to the end of June, Stamp Duty income was up £14.7 million compared to the first six months of 2020 (£28.6 million vs £13.9 million) and there was a significant increase in the number of higher value transactions.

It is worth remembering that we came into the pandemic in a strong financial position, with significant reserves and a healthy balance sheet, which has been maintained as a result of improved markets, despite spending whatever was necessary to protect lives, livelihoods and businesses through these extraordinary times. This was highlighted again recently when Standard and Poor reaffirmed our credit rating as AA-/A-1+.

Finally, while there may still be challenging times ahead, we are determined to meet them with the adaptability and professionalism highlighted over the last 18 months by those within Government and the admirable responsibility taken by our Island community.

Introduction

Scope of the report

The Government Plan 2020-2023 and the Government Plan 2021 2024 bring to life the priorities set out in the Common Strategic Policy 2018

to 2022. The Plans set out the activities to be delivered and associated income and expenditure to support the achievement of the Government of Jersey s priorities over the next four years.

Last year we published the first mid-year report, the 6 Month Progress Review 2020. This report looks back at the first six months of 2021 and covers progress in relation to additional funding approved, progress against agreed rebalancing initiatives, and the financial position as of 30 June 2021.

The Annual Report and Accounts and Departmental Annual Reports, which will be published in early 2022, will outline activities to the end of December 2021.

The Mid-Year Review 2021 contains three sections as outlined below:

Section 1 Progress report

It provides a link to high-level narrative on progress to date of all

initiatives which were funded (revenue and capital) following the approval of the Government Plan 2020 2023, and the Government Plan 2021-2024.

To support accountability and transparency each initiative includes

a Common Strategic Priority (CSP) reference number (which allows updates to be tracked across all corporate reports, and year on year), current status, target delivery date, Lead Department, Lead Minister and type.

Section 2 Rebalancing Programme

Updates are provided against the approved rebalancing initiatives as set

out in the Government Plan 2021-24.

They include a general update on the delivery of the initiative, how this

is being delivered, and whether this is being delivered through recurring and/or one-off means.

The impact of the rebalancing initiative over the last six months, and

anticipated impact over the next six months, are also described.

Section 3 Financial report

This report includes a mid-year financial position and forecast position to

year end 2021

Given the significant impact of the pandemic on public finances in 2020

and 2021, this report also sets out the cost of Covid-19 emergency response expenditure and the impact of financial re-balancing to address the effects of the pandemic.

Quarterly Performance Report

The Mid-Year Report 2021 has been timed to align with the release of new and detailed service performance data for each government department. This marks an important step forward in the ongoing development of the Jersey Performance Framework.

The Government of Jersey introduced service performance measures

for the first time in the 2020 Departmental Operational Business Plans; performance against these measures was reported on in the 2020 Annual Report and Accounts. From 2021 onwards, the Government of Jersey has acted to increase transparency and public accountability, by reporting regularly on the service performance measures.

The service performance measures are chosen by each department and report on the key measures of performance for that department. Some cross-cutting government measures (e.g. on customer satisfaction) are also included and others will evolve over time. The 2021 service performance measures are defined in the 2021 Departmental Operational Business Plans (2021 Business Plans).

The service performance measures in the 2021 Business Plans consist of: Performance measure description

Data availability (i.e. the period that data points have been collected) Reporting frequency

A baseline (defined by the department)

A target ( what we want to achieve )

Whether international benchmarks are available

In line with modern data reporting standards, the Government of Jersey s service performance data is reported online and can be downloaded in a range of formats. This supports Islander s and local organisations that may wish to further analyse this data in line with their own priorities.

Section one Progress report

Section 1 - Progress report

1. PoftrhoeGgovrerenmsenst P loanf2 0G20-o202v3 e anrd n Gomvernem nentt P l Pan  l2 a02 n1-2024. The Mid-Year Review describes the high-level narrative of progress to

date on all initiatives funded (revenue and capital) following approval The initiatives can be filtered by Common Strategic Policy priority, by

Department or by Minister.

Section two Rebalancing programme

2. Rebalancing programme Introduction

In 2019 the States Assembly agreed that the Council of Ministers bring forward detailed proposals each year, to be included as a separate paragraph within the Government Plan proposition, seeking the Assembly s specific endorsement of each of the efficiencies contained in the Government Plan .

The Government Plan 2020-2023 set out the ambition to achieve £100 million of efficiencies, with the first £40 million to be achieved in 2020. Within the Government Plan 2021-2024, the Council of Ministers added a further £20 million objective in 2024, increasing the total value to £120 million of efficiencies and other rebalancing measures to be delivered across 2020 to 2024.

140

120

20 100

20

80

20

60

20 1.7

40

15.5

Original target

20 40 Carried over from prior year

0

2020 2021 2022 2023 2024

Graph 1 - Profile of the rebalancing programme 2020-24

Delivery of the efficiency and rebalancing programme has enabled the Government of Jersey to include significant investment in the Government Plan 2020-23 and the Government Plan 2021-24.

250 Covid-19 growth GP20 growth GP21 growth Rebalancing

200

150 100 50 0

2020 2021 2022 2023 2024

Item 2020 £m 2021 £m 2022 £m 2023 £m 2024 £m 2025 £m GP20 growth 80.7 96.7 112.7 116.2 110.9

GP21 growth 24.7 31.8 29 32.6 32.6 Covid-19 growth 87.3 26.6 25.6 12.6 12.6 Rebalancing -40 -60 -80 -100 -120

Net growth 40.7 148.7 91.1 70.8 36.1 45.2 Net growth, excl. Covid 40.7 61.4 64.5 45.2 23.5 32.6

Graph 2 - Profile of Government Plan investment ( growth ) and the rebalancing programme 2020-25

The plan for £40 million in 2020 was published in October 2019 and a performance update was published as part of the Government Plan Six Monthly Report in August 2020. The plan to deliver £20m of efficiencies and other rebalancing measures in 2021 was published in October 2020 and this report provides a performance update on these measures.

At the time of publication of the Government Plan 2021-24, the impacts of the Covid-19 pandemic were apparent and multiple approaches have been required to balance Government finances, including a wide range of fiscal measures, borrowing strategies, economic stimulus, treatment of funds and the delivery of savings and efficiencies. This represented a shift to a broader set of financial rebalancing measures into which the efficiencies were subsumed.

The financial impact of these multiple approaches focuses on areas such as:

 A reduction in revenue spend, delivering better quality services for less

 More efficient collection of existing income and better debt

management

 Increasing the Government s revenue through further recovery of

existing costs, moving towards full cost recovery of services where appropriate

 The extension and increase of existing charges or the introduction of

new charges as revenue raising measures

Governance

As planned, the financial performance management of the 2021 plan

has transitioned into the enhanced monthly financial review process (Budget Monitor). This has provided the Executive Leadership Team (ELT) with monthly financial performance information for each efficiency and rebalancing measure, enabling appropriate management challenge and intervention. This is supplemented by monthly reporting on the Perform system which provides qualitative updates on delivery.

Impact

A critical aspect of assessing the delivery of each efficiency is understanding the impact of its delivery, particularly in the context of our customers, staff and services. This has been especially complex, and, in many cases, it has been difficult to isolate the relatively minor impact of the efficiency from the considerably more significant impact that the pandemic has had on customers, colleagues and services.

Summary of 2021 efficiencies and rebalancing measures

The budget impact of the 2021 plan to deliver £20 million of efficiencies and rebalancing measures is set out below and sub-totalled against each Department.

Department 2021 value

(£000)

CLS 610 COO 1,240 CYPES 860 HCS 5,227 IHE 5,556 JHA 575 SoJP 265 JOA 8 Non-Mins 72 OCE 27 SPPP 148 SA 5 T&E 77 Department sub total 14,672 General Revenue Income 1,250 Centrally held 4,091

Total 20,013

Table 1 - Efficiencies and rebalancing measures 2021 - allocation by department

As reported in the Annual Report and Accounts for 2020, the delivery of the £40m efficiency target for 2020 was achieved through £25 million

of recurring efficiencies and a further £15 million of one-off measures, typically, but not wholly through deferral of growth funds. These deferrals were, in large part, as a consequence of prioritising the Government s continued response to Covid-19 over some existing and new activities.

The value of one-off measures has been carried forward for delivery on a recurring basis in 2021. This ensures continued focus on building a more efficient public sector.

Therefore, the £20 million target for 2021 is increased by £15 million to a revised target of £35 million.

What have we achieved?

At the half year position, £29.9m of the £35.5m planned efficiencies are due to be delivered on a recurring basis with £19.0m achieved to date. As seen in the detailed updates on progress (below), some departments are revisiting how they will deliver some of their efficiencies and rebalancing measures in 2021 to better reflect the current environment and the impact of the pandemic.

It is assumed that all of the variance represents either one-off delivery or deferred Government Plan growth, which means that an additional £5.8 million of efficiencies and rebalancing measures will need to be added to the existing objective to deliver a recurring £20 million in 2022.

This aligns with the approach agreed by the Council of Ministers in the original Efficiencies Plan 2020-23:

 Ministers agreed that if any of the efficiencies are not subsequently approved [or delivered], they will seek alternative departmental efficiencies to the same value to replace them and/or reduce or reprofile some of

the planned spending by the equivalent amount, in order to ensure that income and spending remain in balance.

Rounding

Minor variations exist between totals by classification as a consequence of rounding.

Department Budget (£000) Forecast (£000) Actuals (£000) Variance (£000) CLS 1,554 1,554 952 0

COO 2,367 1,960 1,187 407 CYPES 3,246 1,774 1,145 1,472 HCS 12,634 10,291 5,629 2,343 IHE 6,531 6,294 4,569 237 JHA 1,424 1,424 563 0 SoJP 265 265 131 0 JOA 8 8 0 0 Non-Mins 72 72 0 0 OCE 537 530 327 7 SA 5 5 0 0 SPPP 262 142 135 120 T&E 597 420 0 177 Department sub total 29,502 24,739 14,638 4,763 T&E RJ 1,250 1,250 625 0 Central items 4,791 3,718 3,718 1,073

Total 35,543 29,707 18,981 5,836 Table 2 - Total rebalancing measures to be delivered in 2021

Progress update for 2021 £20m

Cross cutting rebalancing measures

Project: Increase income from new charges, and increased cost recovery of existing charged services, based on the initial implementation of a fees and charges framework.

Progress: Initially this budget was retained centrally and £577k has now been identified for allocation to departments. £373k will be retained centrally until further opportunities are identified within departments.

CYPES: This sum has been added to the savings target, with the entire programme under review and work underway to identify rebalancing opportunities, this will not be met from additional income opportunities.

CLS: Currently reviewing fees and charges with a view to ensuring that its additional income allocation of £52k is delivered in 2021.

IHE: The savings opportunities to achieve these targets will be reviewed and considered in the second half of 2021.

JHA: On track to deliver income through Jersey Customs and Immigration Service (JCIS), specifically Immigration fees.

SoJP: On track to deliver through absorption of the additional target in normal operations.

Non-Mins: Reviewed their budgets and expect to achieve the rebalancing measure.

OCE: Originally forecast to achieve this income through the introduction of foreign carrier permits by the Office of the Director of Civil Aviation, however they no longer expect to achieve this additional income.

SPPP: This budget is currently being treated as a cost pressure; however, it is anticipated that it can be accommodated within the overall income by the department and its Arm s Length Functions.

T&E: Revisiting how this will be achieved on a recurring basis given the limited opportunities to generate income outside of Revenue Jersey.

Impact: There has been no adverse impact on services.

Status: Some departments are on track for delivery.

CYPES: The sum has been added to the overall savings target.

CLS: Forecasting to deliver this in 2021.

IHE: Savings opportunities to be reviewed in the second half of 2021.

JHA: On track to deliver within JCIS following the impact of Brexit changes.

SoJP: On track to deliver through absorption of the additional target in normal operations.

Non-Mins: On track to deliver this measure in 2021.

OCE: As a result of Covid-19 and the impact of a reduction in air traffic and travel, OCE forecast an under-recovery of income from their initial savings target allocated, so this will not be achieved.

T&E: Not on course to meet this target recurrently, but in 2021 it will likely be offset by underspends elsewhere. Conversations are in progress about where this rebalancing target can be realised recurrently.

Value: £950k Forecast: £145k

Department Budget (£000) Forecast (£000) Actuals (£000) Variance (£000) CLS 52 52 - -

CYPES 172 - - 172 IHE 237 - - 237 JHA 33 33 - - SoJP 3 3 - - Non-Mins 57 57 - - OCE 7 - - 7 SPPP 7 - - 7 T&E 9 - - 9 Unallocated 373 - - 373

Total 950 145 0 805 Table 3 - Summary of fees and charges rebalancing measure by department

Project: Continue the best practice of reviewing and securing recurring reductions in non-staff budget including locking in some of the spend reductions evidenced during Covid-19.

Progress: Some departments are currently forecast to achieve this through one-off in-year savings so they are looking to identify where these savings could be made recurrently.

CLS: On track to deliver through reductions in non-staff spend.

COO: Travel costs have gone down dramatically across COO supporting the saving. This may increase post-covid, but more virtual meetings will mean we will cut this cost by the £40k permanently.

CYPES: This sum has been added to the savings target, with the entire programme under review and work underway to identify rebalancing opportunities.

HCS: On track to deliver a proportion of the target and further work is underway to identify how the remaining will be delivered recurrently.

IHE: Non-staff budget savings opportunity identified within Operations and Transport and the departments budget has been reduced accordingly. This saving is annually recurring.

JHA: Recognising that the original planned efficiencies are not going to be achieved, JHA have replaced them with a vacancy management factor equivalent to 2.7% of staff budget which is how this measure is to be delivered.

SoJP: On track to deliver through lower spend on equipment purchases.

JOA, NMD, SA: Following review, historic revenue budgets have been updated to take account of the more recent trend on receipts and as a result, the non-executive departments will achieve the allocation structurally.

SPPP: With a focus on pressing Public Health policy work, SPPP continues to reduce non-staff spend in the period under review.

T&E: Likely realise through underspends in 2021. Conversations are in progress about where this rebalancing target can be realised recurrently.

Impact: The impact of the efficiency on the delivery of public services over the last six months has not resulted in a cut to services nor is any expected over the next six months.

Status: Some departments are on track for delivery.

CLS, COO, IHE, SoJP, JOA, NMD, SA, SPPP: On track to deliver. CYPES and T&E: Savings have not yet been identified.

JHA: On track to deliver through an alternative measure.

HCS: On track for part delivery.

OCE: On track to deliver £18,000 of the £21,000 savings on a non- recurrent basis through reduced spend on non-pay as a result of the impact of Covid-19 (consultancy, travel and accommodation). More work is required in the latter part of 2021 to identify where these savings, and the remaining £3,000, will be achieved on a recurrent balance.

Value: £750k Forecast: £417k

Department Budget (£000) Forecast (£000) Actuals (£000) Variance (£000) CLS 97 97 49 -

COO 40 40 40 - CYPES 158 - - 158 HCS 227 86 33 141 IHE 69 103 -34 JHA 31 - - 31 SoJP 27 27 14 - JOA 8 8 - - Non-Mins 15 15 - - OCE 21 21 18 - SPPP 14 14 7 - SA 5 5 - - T&E 38 - - 38

Total 750 417 161 334 Table 4 - Summary of non-staff spend rebalancing measure by department

Project: Management of inflationary pressures.

Progress: Budget has been retained centrally as in previous years. Impact: There has been no adverse impact on services.

Status: Efficiency on track for delivery in 2021.

Value: £3.7m

Forecast: £3.7m

Departmental rebalancing measures

Customer and Local Services

Project: Care Needs at Home and Customer Service Improvements.

Progress: The Care Needs at Home project was delayed and is due to start later in 2021 and the planned saving is expected to be achieved. CLS continue to review, identify and implement improvements to their ways of working which are enabling savings to be made in respect of the staffing budget.

Impact: The impact of these measures on the delivery of public services over the last six months has resulted in delay to the Care Needs at Home benefit project. Plans are in place to ensure that this project will be delivered in late 2021. The department is continuing to deliver a customer focussed service, it is operating within budget through improved ways

of working, increased use of technology and improved efficiency. The department is not delivering these savings through reductions in services offered to the public.

Status: Measures on track to be delivered. Value: £461k

Forecast: £461k

Chief Operating Office

Project: Review and renegotiate the GoJ print contract securing some of the reductions in print volumes derived from an increase in home working and continued investment in technology.

Progress: Commercial Services successfully secured a set of revised costs in respect of Managed Print Services and these have been applied to billing to GoJ since Sept 2020. The saving impacts on all departments, not just COO. The new contract has removed minimum volume requirements and associated charges which has enabled behavioural change across departments through increased remote working and reduced print requirements.

Impact: There is no impact on the services provided.

Status: This rebalancing measure is delivered with a forecast of circa £30k saving per month.

Value: £100k Forecast: £270k

Project: Merge the support and re-plan commissioned research projects for the States Employment Board and Jersey Appointments Commission (JAC).

Progress: This measure will no longer be delivered but the value will be achieved through other means. The main reason for this is it has now been superseded by the draft States of Jersey Employees legislation to make the JAC independent and therefore merging the functions could not occur.

Impact: There is no impact on the services provided.

Status: Rebalancing measure to be delivered via alternative recurring means. In 2021 it will be achieved through underspends on staff. Efficiency savings in future years should be delivered by SPPP as part of the new JAC.

Value: £200k Forecast: £200k

Project: Transfer technology functions from CYPES and HCS into Modernisation and Digital (M&D) continuing the application of OneGov principles.

Progress: There are delays in the transfer of technology functions from CYPES and HCS into M&D so this is unlikely to meet the full spend reduction at this stage.

Impact: Consolidating the technology functions will impact on the staff within those teams and it is expected that less staff will be required

in the resulting team. However, the consolidated function will benefit from the pooling of skills, knowledge and experience and enable the standardisation of approach across departments.

Status: The rebalancing measure will not be achieved in full due to the delay of the transfer.

Value: £900k Forecast: £323k

Children, Young People, Education and Skills

Project: Redesign the therapeutic support model for children with complex needs (including neuro assessment).

Progress: The project relates to the review and realignment of service budgets with the demand for that service. The service includes the therapeutic support model.

Impact: There is no reduction in the service provided. Status: Rebalancing measure has already been delivered. Value: £200k

Forecast: £200k

Project: Budget realignment.

Progress: The project relates to the review and realignment of service budgets with the demand for that service. The services include antenatal services, care leavers and intensive fostering.

Impact: There is no reduction in the service provided. Status: Rebalancing measure has already been delivered. Value: £330k

Forecast: £330k

Health and Community Services

Project: Implement proposals from the HCS Zero Based Budget (ZBB) exercise.

Progress: The ZBB exercise within HCS completed in November 2020 and identified rebalancing opportunities totalling £5 million. Following a review of these opportunities, the following is forecast to be achieved:

 Closure of Samares: £1.8 million

 Off Island Placements: £1 million. Some recurrent efficiencies have been

delivered through the scrutiny and review of contracts for off island placement services

 Overtime and Agency: £1 million. A full review of staffing requirements,

agency spend, reconfiguration of wards and the delivery of services

has resulted in reductions in agency expenditure. This is forecast to achieve greater savings than the original target which was intended to be achieved through more efficient rostering of permanent staff

 A recruitment freeze has been in place resulting in a spend reduction of

£0.3 million

HCS continue to monitor and work with budget holders to establish an accurate forecast position and to identify further savings to deliver the 2021 rebalancing target.

Impact: The opportunities identified include income generation, cost reduction, contract savings and some staffing related opportunities,

for example, reducing the FTE of a budgeted post. As described in the Efficiencies Plan 2021-24 all efficiency schemes go through a Quality Impact Assessment (QIA) gateway to ensure no schemes adversely affect services or patients and risks are identified and managed throughout the entirety of the programme.

Status: This is forecast to be delivered. Value: £5 million

Forecast: £5 million

Infrastructure, Housing and Environment

Project: Revise and release a portion of the budget for the Health Estate in light of progress made with backlog maintenance and to reflect capital allocations within the HCS budget.

Progress: The budget for the Health Estate was released at the start of the year.

Impact: There is no reduction in the service provided. Status: Rebalancing measure has been delivered. Value: £4 million

Forecast: £4 million

Project: Development of an IHE TOM to include reviews of the overall structure, sports division, business administration and the transfer of customer facing services to CLS.

Progress: The Operations and Transport element has been partially delivered. Work has been completed to transfer customer service activities from Driver and Vehicle Standards (DVS) and Car Parks, from IHE to CLS, to provide a better customer experience, and lead to future efficiencies and enhancements once customer service teams are aligned within the centralised model. These functions characteristically have operated with minimal staffing, and there were no structural savings identified during this stage of transfer of duties, however, there should be future opportunities under the development of the centralised customer service model.

The sports division is undergoing a full review as part of the Inspiring Active Places programme and the Fort Regent decant programme. The revised operating model will be developed in the second half of 2021; however, it is uncertain whether any savings opportunities will arise due to the team requirements to expand its services across additional sporting venues.

Savings have been made within the IHE TOM with regards to capital recharging for roles, and a proportion saved against staff budgets, however these do not accomplish the overall target. A vacancy management factor has been built into the Sport division budget as a recurring saving to deliver the whole target.

Impact: There will be an improved customer servicing capability through the CLS centralised support. The Sport division impact is to be determined following the operating review in the second half of 2021.

Status: £325k of the rebalancing measure is on track to be achieved via the original measure, however the shortfall will be offset against recurring vacancy management savings.

Value: £750k Forecast: £325k

Project: Reduce a portion of the property maintenance budget to reflect a reprioritisation of assets requiring maintenance; informed by the Office Accommodation Project.

Progress: IHE has identified a saving with regards to the leaseback of the bus depot as part of facilities and asset management division. This leaseback provides recurring savings which deliver fully against this savings target. Over-delivery will be used to offset the under delivery of other measures in the department.

Impact: There is no operational impact brought about by this saving. Status: Rebalancing measure has been delivered.

Value: £300k

Forecast: £358k

Project: Re-structure Facilities Management across Government to create one centralised function with hub and spoke delivery aligned with the OneGov principles.

Progress: The facilities management structure continues to be developed through the Enterprise Asset Management project as part of the broader Integrated Technology Solution (ITS) programme. This work may only conclude in the latter part of 2021 and any savings opportunities that may be identified would only be realised in subsequent years. To achieve this savings target in 2021 however, IHE has identified a saving with regards to the leaseback of Maritime House as part of the facilities and asset management division. This leaseback provides recurring savings which deliver fully against this savings target.

Impact: There is no operational impact brought about by this saving. Status: Rebalancing measure has been delivered.

Value: £200k

Forecast: £200k

Justice and Home Affairs

Project: Commercial opportunities: Sell a domestic dwelling no longer required by the Fire and Rescue Service and generate income through the introduction of a fee for asbestos licences.

Progress: Valuation of the domestic dwelling is still outstanding. The asbestos licences fee is no longer a viable income stream and will be delivered via alternative recurring means.

Impact: No impact on the service provided.

Status: It is hoped that the sale can be made in 2021 but it is reliant on external factors such as finding a buyer and concluding the purchase through the Royal Court. Forecast is based on the sale going through in 2021.

Value: £453k Forecast: £453k

Project: Efficient Organisational Structures/ Modern and Efficient Workforce: Continue the digital transformation of GST and Customs services.

Progress: Recognising that the original planned efficiencies are not going to be achieved, JHA have replaced them with a vacancy management factor equivalent to 2.7% of staff budget.

Impact: Additional expenditure has been identified such as increased warehousing to store seized items as a result of the reduced de minimis.

Status: Rebalancing measure on track for delivery in 2021 through an alternative measure.

Value: £50k Forecast: £50k

Project: Modern and Efficient Processes and Systems: Continue the organisational implementation of electronic rostering to replace paper based rostering processes.

Progress: Recognising that the original planned efficiencies are not going to be achieved, JHA have replaced them with a vacancy management factor equivalent to 2.7% of staff budget.

Impact: No impact on the service.

Status: Rebalancing measure on track for delivery in 2021 through an alternative measure.

Value: £50k Forecast: £50k

States of Jersey Police

Project: Modern and Efficient Workforce: Through the application of enhanced workforce planning implement a vacancy factor equivalent to approximately 1% of staff costs.

Progress: Currently on track to deliver through holding a series of vacancies open for the duration of a staff review undertaken over recent months.

Impact:  Tasks that would have been delivered by vacant positions have been temporarily covered by other employees. There has been little impact on services in the short term. The new Police staff model is being finalised, costed and due to go live on 1 August 2021. Changes to the staff structure will be assessed in the second half of 2021 and beyond to ensure the new model delivers and maintains service delivery.

Status: On track for delivery on a recurring basis in 2021. Value: £215k

Forecast: £215k

Project: Modern and Efficient Workforce: Restructure the Intelligence Administration function to reflect known leavers and vacancies.

Progress: Currently on track to deliver through holding a series of vacancies open for the duration of a staff review undertaken over recent months.

Impact:  Positions have been held vacant and the respective tasks have been temporarily covered by other employees. There has been little impact on service in the short term. Changes to the Staff structure will be assessed in the second half of 2021 and beyond to ensure the new model delivers and maintains service delivery.

Status: On track for delivery on a recurring basis in 2021. Value: £20k

Forecast: £20k

Strategic Policy, Planning and Performance

Project: Project deferrals: Defer the development of the Financial Independence in Old Age policy, the development of the Long- Term Housing policy, and the implementation of the Public Services Ombudsman by one year.

Progress: These project deferrals remain in place for 2021 and are due to start in 2022.

Impact: There has been a delay in the development of policy and the implementation of the Public Services Ombudsmen, but these projects are still planned to occur, although at a later date than originally intended.

Status: Rebalancing measure delivered. Value: £128k

Forecast: £128k

Treasury and Exchequer

Project: Reduce cash handling fees by increasing non-cash payment options.

Progress: This measure has been reviewed and the saving is unlikely

to be realised within T&E but rather in other Government Departments. Conversations are currently ongoing with IHE to determine the potential for achieving this spend reduction.

Impact: The impact is not yet known however there may be a reduction in FTE.

Status: Discussions ongoing. Value: £30k

Forecast: £0k

Project: Additional tax revenue.

Progress: Revenue Jersey continue to work in a more compliance focussed manner, supported by the implementation of the target operating model. This has been further enhanced by the publication of the Code of practice setting out clear guidelines for compliance interventions. Revenue Jersey are into the second year of the publication of its annual programme of compliance activities to be undertaken during 2021.

Impact: The impact of the efficiency on the delivery of public services over the last six months has not resulted in a cut to services and overall service is expected gradually to improve over the next six months as measures introduced begin to take effect.

Status: Rebalancing measure on track to deliver in 2021. Value: £1,250k

Forecast: £1,250k

Progress update for measures carried forward from 2020

Customer and Local Services

Project: Reduction in the benefits forecast.

Progress: Covid-19 resulted in a spike in income support costs during 2020 and as a result this was achieved through one off means. In 2020 it was decided that there would be no inflation uplift applied to income support, this has resulted in benefits spend being lower than it otherwise would have been in each year from 2021 onwards. This saving is estimated at £1.0m. In the interim, additional spend on benefits is being funded through the Covid-19 Head of Expenditure.

Impact: Throughout 2020, Income Support costs increased as a result

of Covid-19. Total spend on Income Support is now reducing due to an improving economy and additional interventions by the department encouraging business to recruit new staff, employ apprentices and train existing staff. The situation in respect of the spike in income support spend was outside of the control of CLS and could not have been anticipated at the time the efficiency was budgeted for.

Status: The reduction in the benefits forecast has been achieved through some alternative savings and, in the longer term, through the freezing of benefit rates in 2020.

Value: £944k Forecast: £944k

Chief Operating Office

Project: Cost recovery recharging to capital schemes.

Progress: This efficiency recharges corporate overheads across all Government capital projects. The impact of changes to the capital programme has reduced the scope of the charges which are currently being reviewed. However, it is believed most of the efficiency can still be delivered.

Impact: The impact of the efficiency on the delivery of public services over the last six months has been minimal, with an internal recharge to reflect corporate costs. This is expected to be increased over the next six months as further recharges are made to continuing capital projects. While additional recharging reduces the budget available for capital spend, the amounts involved are relatively small on a project by project basis.

Status: Rebalancing measure on track for delivery in 2021. Value: £500k

Forecast: £500k

Project: Contract Efficiencies.

Progress: Contract efficiencies involve the realisation of savings through the review of Government contracts, leading to savings through a range of interventions, such as: achieving economies of scale through aggregation of spend; standardising products; negotiating on commercial terms; and tendering for goods and services, where appropriate.

Impact: There is no reduction in the service provided. Status: Rebalancing measure on track for delivery in 2021. Value: £400k

Forecast: £400k

Project: Modern and Efficient Workforce.

Progress: The budget has been removed from base budgets which has allowed for tighter management of staffing budgets and the use of agency staff.

Impact: There is no reduction in the service provided. Status: Rebalancing measure delivered in 2021. Value: £226k

Forecast: £226k

Children, Young People, Education and Skills

Project: Efficient Commercial Operations: Contract efficiencies and cost recovery.

Progress: Contract efficiencies and £100k of cost recovery has been delivered to date. CYPES are in the process of identifying additional opportunities to meet the remaining £571k which was previously related to cost recovery of Highlands College courses.

Impact: There is no reduction in the service provided as budgets have been reorganised to accommodate the rebalancing measures.

Status: This is partially complete and work is ongoing to identify further rebalancing measures.

Value: £1,066k Forecast: £495k

Project: Efficient Organisational Structures: Accommodation rationalisation and Business Support review.

Progress: This has been partially achieved through a reorganisation of budgets within the department.

Impact: There is no reduction in the service provided as budgets have been reorganised to accommodate the rebalancing measures.

Status: This is on track to be partially achieved and work is ongoing to identify further rebalancing measures.

Value: £1,135k Forecast: £564k

Project: Modern and Efficient Workforce.

Progress: This has been achieved through a reorganisation of budgets within the department.

Impact: There is no reduction in the service provided as budgets have been reorganised to accommodate the rebalancing measures.

Status: Rebalancing measure on track for delivery in 2021. Value: £185k

Forecast: £185k

Health and Community Services

Project: Operational Excellence

Progress: Productive theatres: The productive theatre programme

sought to improve efficiencies across the theatre suite by improving utilisation (including start-times, turnaround times, patient throughput, pre-op process, Patient Tracking Lists, reduction in over-runs etc.) and modifications to the staffing model. It has not been possible to deliver these in year due to the impact Covid-19. The opportunity for recurrent efficiencies is being reviewed as part of the revised operating model that is now essential in response to enhanced infection control standards and this will be completed by the end of 2022.

Mental Health: Delivery of efficiencies through contract reviews with off-island providers has been significantly impacted through Covid-19. Schemes and placements are being reviewed again and incorporated into the Mental Health operational recovery plan post-Covid-19 and the benefits from this revised approach should be realised in 2022 Support Services.

Impact: As described previously all efficiency and rebalancing schemes go through a Quality Impact Assessment (QIA) gateway to ensure no schemes adversely affect services or patients and risks are identified and managed throughout the entirety of the programme.

Any consumable or medicines changes used directly in patient care also go through a rigorous clinical review process before being changed over. Consequently, there are no adverse effects on patients or services.

Status: Rebalancing measure is on track to part deliver in 2021. Conversations are in progress about where the remaining rebalancing target can be realised recurrently.

Value: £2,874k Forecast: £425k

Project: Modern Workforce and Organisational Structures.

Progress: The Nurse establishment, Medical workforce, Acute Services workforce schemes and the Operating Model for HCS were significantly impacted by Covid-19. These have all been restarted in 2021 and with the increased utilisation of E-Roster, the reconfiguration of the bed state and the invigorated medical model HCS are on track to deliver.

Impact: All efficiency and rebalancing schemes go through a Quality Impact Assessment (QIA) gateway to ensure no schemes adversely affect services or patients and risks are identified and managed throughout the programme.

Any consumable or medicines changes used directly in patient care also go through a rigorous clinical review process before being changed over. Consequently, there are no adverse effects on patients or services.

Status: Rebalancing measure is on track to part deliver in 2021. Value: £2,722k

Forecast: £1,636k

Project: Commercial and Customer.

Progress: The forecast position reflects the additional rebalancing opportunities of £1.3 million which have been identified from overstated budgets prior to 2020 for agency staffing. These have now been removed and reflected within the overall rebalancing outturn.

Impact: All efficiency and rebalancing schemes go through a Quality Impact Assessment (QIA) gateway to ensure no schemes adversely affect services or patients and risks are identified and managed throughout the programme.

Any consumable or medicines changes used directly in patient care also go through a rigorous clinical review process before being changed over. Consequently, there are no adverse effects on patients or services.

Status: Rebalancing measure on track for delivery in 2021 with a full review of the Commercial and Customer opportunities in HCS to be undertaken in the second half of 2021.

Value: £1,811k Forecast: £1,785k

Infrastructure, Housing and Environment

Project: Efficient Commercial Operations Recharging to capital schemes (Recharging to capital schemes relates to recharging corporate overheads across all Government capital projects and the capital programmes).

Progress: Appropriate recharges to capital schemes have been identified for IHE to the value of the required savings target. The recharges have been proposed to the receiving departments and IHE await confirmation and approval of these recharges prior to finalising and processing them.

Impact: While additional recharging reduces the budget available for capital spend, the amounts involved are relatively small on a project by project basis and it is unlikely that any external impacts will be noticed.

Status: Rebalancing measure on track for delivery in 2021 if recharges are approved.

Value: £500k Forecast: £500k

Project: Modern and Efficient Workforce Vacancy management.

Progress: Departmental budgets have historically been funded assuming all roles are always filled throughout the year. However, there will generally be a natural level of vacancies in departments. These arise from a multitude of factors, including natural turnover as employees retire or leave for other jobs, implementation of Target Operating Models and challenges in recruiting to specialist roles. IHE have applied a vacancy factor to

their workforce costs to achieve these financial savings. This has been apportioned to department budgets and is tracked monthly to ensure department underspend validates the savings.

Impact: There will be no impact on the workforce.

Status: Rebalancing measure on track for delivery in 2021 and additional savings in this area are being used to achieve other rebalancing measures in IHE.

Value: £475k Forecast: £808k

Justice and Home Affairs

Projects: Efficient Commercial Operations: Customs and Immigration Increased passport fees.

Progress: As a result of the Covid-19, 2020 Passport income was not achieved, however the service will start to overachieve from Q3 2021 as travel restrictions ease and demand increases.

Impact: There may be an impact through the use of temporary contracts to cover increased workload.

Status: Rebalancing measure on track for delivery in 2021. Value: £193k

Forecast: £193k

Projects: Efficient Commercial Operations: cost recovery and contract efficiencies.

Efficient Organisational Structures: Business Support review and operating model phase 2.

Progress: As a result of Covid-19, JHA reviewed their 2020 efficiencies that needed to be found recurrently in 2021. Recognising that the original planned efficiencies are not going to be achieved, JHA have replaced them with a vacancy management factor equivalent to 2.7% of their staff budget.

Impact: There is no reduction in the services provided.

Status: On track for delivery on a recurring basis in 2021 through the alternative vacancy management measure.

Value: £626k Forecast: £626k

Project: Modern and Efficient Workforce Ambulance Service and Customs and Immigration.

Progress: JHA have reviewed and evaluated overtime pay in year and over prior years and identified where reductions can be made in year.

Impact: There is no reduction in the services provided.

Status: Rebalancing measure on track for delivery on a recurring basis in 2021.

Value: £27k Forecast: £27k

Office of the Chief Executive

Project: OCE Operating Costs, Business Support Review and Modern & Efficient Workforce.

Progress: Savings have been achieved non-recurrently through staff vacancies and reduced spend on non-pay as a result of the impact of Covid-19 (consultancy, travel and accommodation). More work is required in the latter part of 2021 to identify where these savings will be achieved on a recurrent basis.

Impact: There is no impact on the delivery of public services.

Status: OCE is on track to deliver a portion of the savings on a recurrent basis with the remaining currently due to be achieved via alternative one- off measures.

Until the economy fully opens it is too early to see how recurrent efficiency savings will be delivered in 2022. However, more work will be undertaken in the latter part of 2021 and the forecast is based on the assumption recurrent savings will be identified.

Value: £228,500 Forecast: £228,500

Project: Efficient Commercial Operations and Contract Efficiencies.

Progress: Savings have been achieved non-recurrently through staff vacancies and reduced spend on non-pay as a result of the impact of Covid-19 (consultancy, travel and accommodation). More work is required in the latter part of 2021 to identify where these savings will be achieved on a recurrent basis.

Impact: There is no impact on the delivery of public services..

Status: OCE is on track for the delivery of savings through alternative one-off means. Until the economy fully opens it is too early to see how recurrent efficiency savings will be delivered in 2022. However, more work will be undertaken in the latter part of 2021 and the forecast is based on the assumption recurrent savings will be identified.

Value: £280,000 Forecast: £280,000

Strategic Policy, Planning and Performance

Project: Recovery of policy costs.

Progress: Efficiency relates to recovery of some SPPP policy costs relating to fees administered by CLS under the Control of Housing and Work Law (CHWL). Due to the negative impact of the Covid-19 pandemic on CHWL fee income during 2020 and 2021, it is envisaged that the amount will

be absorbed from other one-off savings within SPPP for the current year, before planned cost recovery begins in 2022.

Impact: There is no impact on the delivery of public services. Status: Rebalancing measure to be delivered via other one-off means. Value: £113k

Forecast: £Nil

Treasury and Exchequer

Project: Reduction in costs arising from system transformation of finance function.

Progress: Work is ongoing to deliver reductions in costs. It is not anticipated that this rebalancing target will be met through the automation of bank reconciliations ahead of the implementation of ITS and T&E will review and evaluate how to achieve this going forward with other process and systems changes. The saving will be delivered on a one-off basis through other means.

Impact: The impact of the efficiency on the delivery of public services over the last six months has not resulted in a cut to services and the same is expected over the next six months.

Status: Review of efficiencies plan to be conducted to determine whether this measure can be delivered recurrently in 2021 or ongoing. The forecast assumes recurring measures are identified.

Value: £230k Forecast: £230k

Project: Modern and Efficient Workforce.

Progress: The Department has continued to operate with a number of vacancies across the majority of the team. Recruitment continues to be

a focus in order to reduce costs of interims and temporary staff where they are used in the department. Recruitment of suitably qualified and/ or experienced staff continues to be a challenge and risk to service delivery. A future workforce plan will be developed in the second half of the year, which will also consider how workforce costs could be further reduced.

Impact: This may result in a reduction in FTEs within the Department.

Status: Discussions ongoing to determine whether this measure will be delivered in 2021, currently anticipated that the target will be delivery through vacancies and other underspends.

Value: £190k Forecast: £190k

Project: Contract Efficiencies.

Progress: Conversations are in progress with COO to better understand T&E s non-staff spend and identify where potential budget reductions can be realised.

Impact: This may result in a reduction in service(s) provided to other departments, but this is not yet known.

Status: The Department is forecasting an overall underspend (excluding grants) for 2021, so the efficiencies target will be met on a non-recurring basis in this financial year. Discussions ongoing to determine whether this measure can be delivered recurrently in 2021.

Value: £100k Forecast: £Nil

Unallocated

Project: Commercial operations: extension to car parking charging hours.

Progress: This was rejected by the States Assembly in the 2020

efficiencies programme. Since then, SPPP have been in the process of developing a Sustainable Transport Policy (STP) which will look holistically at transport across the island, including the matter of parking. Once the

STP is developed, the environmental taxes sub-group of the Revenue

Policy Development Board can then appropriately consider any changes to car park charging and the associated impact.

Impact: The STP is in development so no changes to car parking charges have been proposed.

Status: Rebalancing measure expected to be achieved via alternative means in 2021 but these are not yet identified so forecast is Nil.

Value: £700k Forecast: £Nil

Section three Government finances

3. Government finances

Introduction

This section provides a summary of the forecast financial position for 2021, including income and expenditure forecasts against prior year and the budget included in the Government Plan 2021 - 2024.

The projected year-end financial position is a snapshot and will continue to develop as the year progresses and departments work on managing the continuing impacts of Covid-19 with the key priorities within available resources to provide the best value for money for the Island.

The final position as at the end of 2021 will be reported in the Annual Report and Accounts 2021.

The financial summaries in this section focus on general revenue income, departmental net revenue expenditure and project expenditure as approved in the Government Plan 2021-24, as supplemented by decisions of the Minister for Treasury & Resources and also includes Trading Operations, Social Security Funds and investment performance, including that of the Strategic Reserve and the Social Reserve Fund.

As new structures and reporting capabilities progress the content of future reports will evolve.

Overview

Based on forecasts, there will be a deficit of £38m excluding depreciation and £92m including depreciation.

This compares with a deficit of £67m before depreciation and £113m after depreciation in 2020.

£92m 2021 Forecast £181m 2021 GP £113m 2020

Graph 3: States Assembly approved deficit

The forecast position is £88m better than the Government Plan 2021 -24 projected. The most significant factor is an improvement in the General Revenue Income forecast which is £74m better than the Government Plan forecast.

The considerable impact Covid-19 had on government finances through reduced income and additional expenditure has continued in to 2021. While the General Revenue Income forecast is higher than the forecast used in the Government Plan 2021 -24, it is still £38m lower than the pre- Covid-19 forecast for 2021.

Departments are forecasting the attributable costs of Covid-19 in 2021 to be £126m compared to £190m in 2020.

The forecast used in this report will continue to be reviewed through the year - it is likely that there will be changes to existing Covid-19 related forecasts as circumstances evolve in the government s continuing efforts to manage the health and economic impacts of Covid-19.

Further to the above position, other areas of the Government finances include:

Trading Operations income still impacted by Covid-19. Jersey Car

Parking income budget reduced by £2m in 2021.

Social Security Funds - planned transfer of £95.1m from the Social

Security (Reserve) Fund to manage cancelled supplementation grant and the impact of deferrals.

Investment returns on the Common Investment Fund of 8.7% year

to June, 8.3% annualised over the 3 years to June which exceeds the market benchmark of 7.4%.

Borrowing Rolling Credit Facility of £500m was entered into with 5

banks in May 2020. £25m was drawn down in Q2 of 2021 and there is Ministerial approval to draw down up to an additional £85m in Q3 as required.

Fiscal Stimulus £29.6m of projects identified and agreed to by the

Minister, £8.9m approved and £0.3m spent to the end of June.

Projects (including Capital Expenditure) - Available Funds of £190.4m,

£53.0m spent to the end of June and a full year forecast of £171m.

Income and Expenditure Highlights

Based on latest available forecasts and the assumed impacts of Covid-19 on income and expenditure, there is forecast to be a deficit of £92.4m in 2021 after depreciation.

2020 2021 2021 2021 2020 Actual Government Plan Forecast GP Variance Variance £m £m £m £m £m (851.9) General Revenue Income (806.4) (880.7) 74.3 28.8

918.6 Total Net Revenue Expenditure 932.4 918.5 13.9 0.1

66.7 Operating Deficit 126.0 37.8 88.2 28.9

46.7 Depreciation 54.6 54.6 0.0 (7.9) 113.4 Deficit of General Revenue Expenditure over Income 180.6 92.4 88.2 21.0

Table 5 - Breakdown of forecast deficit

General Revenue Income

The Income Forecasting Group (IFG) have produced a Spring income forecast which will form the basis of the General Revenue Income estimates in the Government Plan 2022-25.

£881m 2021 Forecast £806m GP 2021-24 £919m GP 2020-23 £852m 2020

Graph 4 - 2021 IFG Spring Forecast against budget and prior year

The Spring forecast is £74m higher than the Autumn 2020 forecast used to develop the Government Plan 2021 2024 but it is still £38m lower than the Autumn 2019 forecast from the Government Plan 2020 2023.

The central forecast reflects the better than projected 2020 outturn

and the latest information available on economic conditions. There is a still a greater level of uncertainty than in pre-Covid-19 years around the impact on the local and global economy but there are positive signs that earnings and economic activity have not been impacted as severely by the pandemic as initially projected during 2020.

The IFG report will include an illustrative range around this forecast, when published.

General Revenue Income Full Year Forecast

GP Budget 2021 Forecast

£560.1m £601.6m Net Income Tax £88.1m £97.7m Goods and Services Tax (GST)

£68.0m £73.7m Impots Duties £31.3m £43.2m Stamp Duty £13.5m £13.6m Island Rate

£8.1m £11.1m Other Income (Dividends) £5.5m £9.2m Other Income (Non Dividends) £31.8m £30.6m Other Income (Return from

Housing Associations)

Graph 5- Breakdown of Net General Revenue Income

Note: Bad debt provision of £6m applied against Net Income Tax

Movement from 2020

£19.4m £3.8m

(£0.6m)

£6.1m

£0.3m

£0.1m

(£0.2m)

(£0.2m)

Net Income Tax

The Personal Income Tax forecast in the IFG Spring update is £42m higher than the Autumn 2020 forecast due to stronger outturn figures for 2019 Year Of Assessment and stronger than expected earnings growth captured through ITIS in 2020.

Based on the 2020 outturn and data from Revenue Jersey in addition to their assessment of the wider economic conditions, the IFG have also reduced their adjustment for the impact of Covid-19.

The Company Income Tax forecast has reduced by £1m in the Spring IFG update compared to the Autumn 2020 position. As Company Tax is assessed in arrears and returns for 2020 are not due until the end

of 2021, the impact of Covid-19 on business profits remains somewhat uncertain. However, other indicators such as employment levels, Social Security Contributions and GST payments suggests the impact of Covid-19 on overall business profits and tax payable has not been as severe as previously projected, over the economy when viewed as a whole.

Prior Year Basis (PYB) Tax Debtor

The decision to move all Personal Income Tax payers on to a Current Year Basis has crystallised approximately £345m of taxpayer debt. Out of that, approximately £6.7m has already been paid. Work continues

to confirm the arrangements for the monitoring and collecting of this debtor balance over the long term.

GST

The GST forecast in the IFG Spring update is £13.1m higher than the Autumn 2020 IFG forecast. Again, this reflects the level of GST recorded in 2020 with a number of sectors outperforming earlier expectations.

To date, GST returns and payments are equivalent to 2020. Analysis of sectoral performance will continue as more returns are submitted through the year.

GST Deferrals

The level of formal deferrals is still uncertain but Revenue Jersey are assuming that any outstanding payments in respect of returns due is deferred. Latest estimates are that £12m of GST owed is being deferred. This GST revenue has still been recognised and expected bad debts will continue to be monitored based on business intelligence.

Imp ts Duties

Income from Imp ts was significantly higher than initially expected in 2020. This was largely attributed to the lack of opportunities for duty free imports with restricted travel and consumption habits shifting from hospitality venues to home settings.

While travel has been less restricted in 2021, it has still been well below historic levels which is expected to continue to have an impact on duty free sales.

To the end of June, Imp ts recognised was £3m higher than the same period in 2020 (£32.6m vs £29.6m). Most of this increase is in tobacco and fuel.

The increased level of duties received in 2020 and to date has been factored in to the 2021 forecast and will continue to be monitored through the year

Stamp Duty

Despite challenging circumstances, income from Stamp Duty was higher than forecast in 2020. This trend has continued in 2021 with the volume of transactions for the year to June being the highest since 2017.

House prices have also seen a significant increase in the last few years

as illustrated by the below chart from the Statistics Jersey House Price Index Quarterly Summary for Q1 2021.

To the end of June, Stamp Duty income recognised was £14.7m higher than the same period in 2020 (£28.6m vs £13.9m) with a significant increase in the number of higher value transactions.

To the end of June, there were 211 court transactions with a consideration value of £1m or higher yielding £16.8m in Stamp Duty.

This compares to 254 transactions with a consideration of £1m or higher for the whole of 2020 which yielded Stamp Duty of £16.6m (93 to the end of June 2020 with associated Stamp Duty of £7.0m).

210 Jersey House Price Index

Rolling four-quarter average 190

170

150

130

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Graph 6 - Statistics Jersey House Price Index Quarterly Summary, Q1 2008 to Q1 2021

Other Income

The Spring IFG forecast is £5.6m higher than the Autumn 2020 forecast mainly due to higher expectations on investment returns, including dividends.

JT Group Special Dividend

The IFG Spring forecast does not include any additional dividend from JT Group following the sale of its Internet of Things division. While not all of the sale proceeds will translate into a return to Government of Jersey as shareholder, a special dividend is expected to be received

in 2021. This will be confirmed later in the year.

Net Revenue Expenditure

Departmental net revenue expenditure (before depreciation) is forecast to be the same as 2020 and £14m lower than budgeted in the Government Plan 2021 2024.  

2021 Forecast £793m £126m £55m GP 2021 £805m £127m £55m

2020 £729m £190m £47m

Net revenue expenditure (excl. Covid-19) Covid-19

Depreciation

Graph 7 - Net revenue expenditure, Covid-19 costs and depreciation

Departments reported additional Covid-19 related costs and lost operational income of £190m in 2020. The equivalent forecast in 2021 is £126m with £65m recorded to the end of June.

The Government Plan also included rebalancing measures of £20m in addition to the £40m removed from department budgets in 2020 and additional non-Covid-19 growth of £41m in 2021 (£123m in total including 2020 growth). Of that:

 Rebalancing Total target of £35.5m including the £15.5m brought

forward from 2020 to be delivered on a recurring basis. Forecast to deliver £29.7m. (See Section 2)

 Growth Forecast to spend £118m out of the £123m non-Covid-19

growth allocated (£52m spent to 30 June)

Covid-19 continues to impact on the ability of departments to deliver the rebalancing targets in the 2021 plan with a number of larger initiatives deferred or paused as a result of resources being re-focussed on to the health and economic impacts of the pandemic. However, for the same reasons, departments have been unable to progress all growth initiatives to the extent forecast in the Government Plan.

Overall, total spend before depreciation is forecast to be the same as 2020 with the additional growth allocated offset by lower costs of Covid-19 and additional rebalancing in 2021.

A full analysis of forecast growth spend is provided in Appendix 2 and details on the delivery of rebalancing is provided in Section 2 of this report.

As Covid-19 costs are predominantly being captured against the specific Covid-19 Response Head of Expenditure in 2021, the chart below restates 2020 to move the amounts for each department attributed to Covid-19 to the Covid-19 Response line for comparability. There will still be Covid-19 costs included against department lines that will contribute to the movement between years in some cases.

2021 Expenditure

£231.5m Health and Community Services

£26.8m States of Jersey Police Service2 £22.1m Non Ministerial States Funded Bodies

Movement from 2020

£15.4m £11.3m £3.4m £2.9m £3.9m £13.7m £7.6m £0.3m £1.2m £1.3m £0.4m £0.0m £1.2m

£0.6m (£89.0m) £25.8m

Graph 8 - Department net revenue expenditure with 2020 Covid-19 costs restated

1 Financial Services and Digital Economy was established as a separate Head of Expenditure in the Government Plan 2021-24 for 2021. It was part of the Office of the Chief Executive Head of Expenditure in 2020. Both lines have been restated in the table above for comparability.

2 States of Jersey Police Service was established as a separate Head of Expenditure in the Government Plan 2021-24 for 2021. It was part of the Justice and Home Affairs Head of Expenditure in 2020. Both lines have been restated in the table above for comparability.

3 Covid-19 Response was established as a separate Head of Expenditure in the Government Plan 2021-24 for 2021 to isolate the known specific costs associated with the Covid-19 response and maintain greater comparability of department base net expenditure. In 2020, the cost of Covid-19 incurred by departments was reported within their department position.

4 Expenditure will not be incurred directly against Reserves - funding is allocated to departments once approved. This forecast represents spend anticipated in 2021 for identified pressures not yet drawn down into departments.

Net Revenue Expenditures By Department

All 2020 figures for departments have been restated to remove the

costs directly attributed to Covid-19 as they are being reported against a separate Covid-19 Response Head of Expenditure in 2021. Some Covid-19 costs will still be included against departments but this restatement improves the ability to compare between years.

Health and Community Services (HCS)

£232m £16m

2021 Forecast Movement from 2020

2021 Growth £14.9m 2021 Rebalancing target (£5.2m)

The department is responsible for health matters extending throughout a person s life, and coordinates a wide range of frontline health services, whether in the community or in hospital.

It ensures that not only are our medical services of the highest standard, but that the services provided in the community to vulnerable groups, the elderly, the disabled and those suffering from mental ill health, also meet the high standards of care that they deserve.

The department has most of the functions of the previous Health and Social Services Department, but places greater emphasis on community care for vulnerable groups and stronger preventative services.

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £15m/7%):

 £6.6m funding to support the implementation of the Jersey Care Model,

delivering a preventative focused and community-based Health Service through the development of care pathways.

 £5.8m growth investment to support maintaining healthcare standards

and provision of services. This includes ongoing investment for service redesign for a safe, sustainable, and affordable health and social care system.

 £3m in respect of pay awards across the health sector.

 £1.6m of Mental Health additional investment to continue to drive

improvements in mental health services with new facilities and new services such as crisis prevention and intervention teams.

 £1.2m for the Reducing Preventable Disease (RPD) portfolio to reduce

the burden of preventable disease and avoidable, early death in the Jersey population and, in doing so, achieve the Government of Jersey s Common Strategic Policy (CSP) priority to Improve Islanders wellbeing and mental and physical health .

 £0.7m funding to ensure the Island Digital Health ambition is delivered.

£0.4m Air Ambulance funding to ensure the ongoing provision of an air

ambulance service after the previous operator ceased providing the service.

£1.3m in respect of recurrent inflationary pressures for drugs and health

supplies.

(£5.2m) reduction in respect of 2021 rebalancing measures.

Children, Young People, Education and Skills (CYPES)

£161m £11m

2021 Forecast Movement from 2020

2021 Growth £10.8m 2021 Rebalancing target (£1.2m)

The department puts the care, welfare, education and whole life chances of children and young people absolutely at its heart. The pace of reform, and the scale of cultural and service change the department needs to ensure that children and young people are protected and enabled to flourish is developing.

The department is responsible for putting children first, completing the urgent Care Inquiry reforms and adopting worldwide best practice in the care of children and young people. It will also modernise and improve the standards of academic education and vocational skills in Jersey.

In addition, it will strengthen the links between Jersey s businesses and schools and colleges, so that young people have better opportunities to build careers on the island, reducing reliance on skilled migrants, and improved whole life chances.

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £11m/7%):

 £7.9m in growth investment for the Education Reform Programme.

The Independent School Funding Review, published in October 2020, was commissioned by the Education Minister to examine Jersey s 4-18 years education funding model. The review concluded that there was a funding shortfall in the education system and additional funding of £7.9m was identified in the Government Plan for 2021 rising to £11.6m over four years.

 £1.6m of additional operational costs incurred in the department

associated with Covid-19. This includes additional cleaning, PPE and signage as well as lost income through reduced Highlands courses and canteen sales.

 £1.5m of pay awards and additional employer pension costs across the

department on a staff budget of £128m.

Customer and Local Services (CLS)

£91m £3m

2021 Forecast Movement from 2020

2021 Growth £0.4m 2021 Rebalancing target (£0.6m)

Customer and Local Services brings together a wide range of front line government services to make it easy for customers to access government and is responsible for delivering more local services in the community and establishing a stronger relationship with Parishes and the voluntary sector. In 2021, the department has a budget of £92.0m, of which £78.1m is for benefit payments and financial support provided to low income households and other areas of the community.

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £3m/3%):

 £2m of budgeted inflation on benefits spend. Despite this increase,

benefits spend is forecast to be under budget in 2021 due to lower than projected unemployment numbers and some savings on accommodation benefits associated with the Andium rent freeze.

 £0.6m on pay awards and additional employer pension costs across the

department.

 £0.4m on a grant to Beresford Street Kitchen - a charity who support

people with disabilities by providing work experience and training. The charity depends heavily upon trading income from the cafØ and, as a result of Covid-19 restrictions and its closure, they were not financially viable at the end of 2020 and in to early 2021. An additional grant is being provided to support the charity in the short-term whilst they consider sustainable funding options.

Treasury and Exchequer (T&E)

£3m

Movement from 2020

Treasury and Exchequer looks after the Island s finances and financial assets, ensuring the protection and good use of public funds with the aim of ensuring long-term financial sustainability for the island by making sure every pound of Jersey taxpayers money is spent wisely and all financial implications of decisions are understood. The department includes Revenue Jersey, which administers Jersey s tax system, enforces, and collects a range of taxes.

The department is also responsible for the grants to the Social Security, the Long Term Care Fund and the Fuel Duty transfer to the Climate Emergency Fund.

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £3m/5%):

 £1.8m increase in Revenue Jersey expenditure due to a temporary

increase in personnel to deal with the backlog in casework and the associated additional office accommodation costs. The backlog has arisen due to existing personnel being diverted to manage changes in the taxation regime, upgrade systems to meet modern standards and to transform the Department to improve efficiency in the collection of revenues. Work undertaken to date has greatly improved the collection of revenues, the additional amount collected to date being significantly greater than increased expenditure.

 £3.6m increase in grants, primarily to the transfer of Fuel Duty to the

Climate Emergency Fund now sitting in this division along with the £1.0m increase in the Long Term Care Fund to supplement the contributions made by taxpayers.

 £0.3m increase in Revenue Jersey on preparatory work to meet the

OECD s Pillar 2 requirements and some short-term cover for a large cohort of senior managers retiring this year.

 £0.7m reduction in spend on Finance Transformation due to the phasing

of the spend with the greatest investment in early years, phasing out as the transformation is embedded across the department eg. Zero Based Budgeting

 £2.1m reduction due to vacancies across the department, including a

number of senior and management roles, and insurance costs which are currently forecast against Reserves pending the allocation of budget.

Infrastructure, Housing and Environment (IHE)

£49m £4m

2021 Forecast Movement from 2020

2021 Growth £2.0m 2021 Rebalancing target (£5.6m)

The Department ensures that the Government continues to maintain and develop a sustainable island, with urban planning that enhances, rather than undermines, our natural and cultural heritage. It enforces the many regulations from consumer protection to biodiversity that protect our quality of life in our unique island environment.

It ensures that the environment and economy are not competing forces, but are complementary partners in developing our island s future infrastructure, and it also includes a stronger focus on special large-scale infrastructure projects and partnerships with the Government s arms- length organisations.

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £4m/9%):

 £2.2m of projected income shortfall in Sport due to restricted use of

sports facilities. This will be funded from the Covid-19 Response Head of Expenditure subject to approval.

 £1.1m of additional Brexit related expenditure including biosecurity

border controls and fisheries and marine resources management.

 £0.8m of additional growth funding including water management,

marine resources and housing.

 £0.7m of projected shortfall in Planning and Building due to reduced

activity. This will be funded from the Covid-19 Response Head of Expenditure subject to approval.

 £0.4m on pay awards and additional employer pension costs across the

department.

 £1.3m reduction due to rebalancing measures in 2021.

Chief Operating Officer (COO)

£41m £14m

2021 Forecast Movement from 2020

2021 Growth £6.9m 2021 Rebalancing target (£1.2m)

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £14m/52%):

 £4.0m increase in Commercial Services to fund the creation and

development of the team and accelerate the transformation in 2021.

 £3.4m increase in Modernisation and Digital (M&D) due to the transfer

of the satellite IT support functions within States of Jersey Police and CYPES to the centralised M&D function.

 £2.9m increase in M&D due to the introduction of the Target Operating

Model and an investment in digital infrastructure.

 £1.1m increase in People and Corporate Services (HR) to fund the

additional staff associated with the Target Operating Model.

Justice and Home Affairs (JHA)

£30m £0m

2021 Forecast Movement from 2020

2021 Growth £0.02m 2021 Rebalancing target (£0.6m)

Note: The States of Jersey Police Service was included within Justice and Home Affairs in 2020. As it now has a separate Head of Expenditure, 2020 has been restated.

The Justice and Home Affairs department integrates public protection, law enforcement, emergency services (except for Police) and emergency planning, to keep Jersey safe and secure.

It brings key blue light and emergency services (including Fire and

Rescue and the Ambulance Service but excluding the States of Jersey Police Service), together with Customs and Immigration, the Prison Service, and the Health and Safety Inspectorate.

There is no material movement in Net Revenue Expenditure from 2020 forecasted.

States of Jersey Police (SoJP) Service

£27m £1m

2021 Forecast Movement from 2020

2021 Growth £1.0m 2021 Rebalancing target (£0.3m)

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £1m/4%):

 £0.6m increase due to net investment to support Modernising

Government, Vibrant Economy and Put Children First common strategic policies. This included investing in staff to enhance community policing, public protection, anti-money laundering and the counter-fraud team.

 £0.3m increase due to pay awards in 2021 and backpay associated with

2020 pay awards.

 £0.1m increase to fund the running of the Sexual Assault Referral Centre

(SARC) which provides emotional support, medical care, and long term practical support to anyone impacted by any type of sexual offenses.

Non-Ministerial Departments

£22m £1m

2021 Forecast Movement from 2020

2021 Growth £0.2m 2021 Rebalancing target (£0.1m)

The Non-Ministerial Departments are those that are necessarily independent of executive government and consist of:

  Bailiff s Chambers

 Law Officers Department

 Judicial Greffe

 Viscount s Department

 Office of the Dean of Jersey

 Office of the Lieutenant Governor

 Office of the Data Protection Commissioner  Probation and After Care Service

 Comptroller and Auditor General

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £1m/5%)

  Bailiff s Chambers - £1.0m less income in Bailiff s chambers in 2021

associated with the Covid-19 Fund.

 Law Officers - £0.5m of additional grant budget received in 2021 from

the Criminal Offences Confiscation Fund for the International Centre for Asset Recovery membership and an increase in Court and Case Cost legal fees. Staff costs have also increased in 2021 as vacancies have been filled.

 Judicial Greffe - £0.6m less spend in 2021 primarily on Court and Case

Costs legal fees.

 Viscounts - £0.3m less income in 2021 due to two larges court fines

received in 2020.

 Probation - £0.1m reduction in income as Building a Safer Society (BASS)

is no longer received into the department.

Jersey Overseas Aid (JOA)

£12m £0m

2021 Forecast Movement from 2020

2021 Growth (£0.05m)

The Jersey Overseas Aid Commission (JOAC) is an independent aided body. The objectives of JOAC are to manage and administer the monies voted annually by the States Assembly for overseas aid.

There is no material movement in Net Revenue Expenditure from 2020 forecasted.

Strategic Policy, Planning and Performance (SPPP)

£11m £0m

2021 Forecast Movement from 2020

2021 Growth (£2.0m) 2021 Rebalancing target (£0.1m)

Strategic Policy, Planning and Performance leads strategic policy, planning and performance to achieve the ambitions of islanders for the future. The department also supports a number of arms-length functions, including Statistics Jersey, Jersey Care Commission, Safeguarding Partnership Board, Office of the Children s Commissioner, Charities Commission, Jersey Law Commission, Jersey Architecture Commission, the Employment Forum and the Jersey Advisory Conciliation Service (JACS).

Summary of key movements in Net Revenue Expenditure from 2020 (net nil movement)

£1.6m decrease in the funding for the Redress Scheme, which closed for applications in 2020.

£0.1m decrease in the funding for the Island Plan.

£0.6m increase in the new Public Health Directorate, predominantly due to budget transferring from HCS for Reducing Preventable Diseases programme.

£0.4m increase in the costs of the 2021 Census, which spans two years.

£0.2m increase in the Safeguarding Partnership Board due to filling of vacancies held in 2020.

£0.1m increase in relation to the Citizen s Panel Legacy Project.

£0.1m increase in the costs of the Household Expenditure Survey, which spans two years.

£0.1m increase due to pay awards in 2021 and backpay associated with 2020 pay awards.

£0.2m other minor variances across the department.

Office of the Chief Executive (OCE)

£8m £1m

2021 Forecast Movement from 2020

2021 Growth £2m 2021 Rebalancing target (£0.5m)

Note: The Financial Services and Digital functions were within the Office of the Chief Executive Department in 2020. 2020 has been restated accordingly.

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £1m/17%):

 £1.0m increase within the Chief of Staff division on pilot schemes

including the town bus service, cadet grants and specific projects including Island Identity, Children and Digital World and Ask the Minister.

Financial Services and Digital Economy (FSDE)

£34m £8m

2021 Forecast Movement from 2020

2021 Growth (£2.4m)

Summary of key movements in Net Revenue Expenditure from 2020 (Increase of £8m/29%):

 £3.6m increase in Financial Services including, Jersey Finance grant

and Finance Crime Strategy. This includes consolidating the New York Office to facilitate Jersey Finance gaining access and influence in US and overseas markets. It also includes funding to further accelerate

the development of the digital sector through Digital Jersey and strengthening the regulatory environment with Anti-Money Laundering investment.

 £1m increase in Visit Jersey including sustaining and growing air route

connectivity and supporting business to lengthen the season to support the local infrastructure and economy.

 £0.8m for Elizabeth Castle to maintain and enhance the facility including

the renovation of the Victorian Military Hospital for use as a visitor attraction and venue hire and the renovation of a coal store as a multi- purpose function facility.

 £0.6m increase in Jersey Sport to support the Inspiring an Active Jersey

programme.

 £0.4m increase in the financial support to farmers

 £0.3m in support for the Fisheries Fixed Cost Support Scheme

States Assembly

£7m £0m

2021 Forecast Movement from 2020

2021 Growth (£0.07m)

The States Assembly is the highest decision-making authority of the Island and makes decisions about new laws or major policy changes. The States Greffe provides an independent administrative support service to the States Assembly and its members, whether they are serving in scrutiny, the executive or in their capacity as private members.

Summary of key movements in Net Revenue Expenditure from 2020 (No Change):

 £0.2m increase in support staff costs for Committees and Panels.

 £0.2m increase due to the introduction of States Members pension

contributions in January 2021 and additional property rental costs from holding assembly in alternative sites to manage Covid-19 restrictions.

Covid-19 Response

The Government Plan allocated £87.3 million of funding against a Covid-19 Response Head of Expenditure across a specific programme. Further allocations can be made during the year from Reserves subject to business cases being supported and the Minister for Treasury and Resources approving.

GP Budget Additional funding

Budget £87.3m £24.4m Forecast £100.5m

Actual £63.2m

Graph 9 - Government Plan Covid-19 funding budget, forecast, and actual to June

The table below provides a reconciliation of the Government Plan budget allocation to the total available budget as at June.

Budget £m

Government Plan allocation 87.3 CLS - Andium Return (0.8) CLS - Payroll Co-Funding Scheme - March 4.8 CLS - Payroll Co-Funding Scheme - April 5.5 CLS - Payroll Co-Funding Scheme - May 5.3 CLS - Payroll Co-Funding Scheme - June 3.7 CLS - COVID-19 Helpline 0.7 CYPES - Online Home Learning 0.2 CYPES CAMHS Wellbeing 1.0 HCS - Covid-19 Operational Costs 4.0

Total Budget Available 111.7

Table 8 - Movement in Covid-19 Response budget from Government Plan 2021-24

In total, £126m of Covid-19 costs, lost income and forecast pressures have been identified by departments with £101m forecast against the specific Covid-19 Head of Expenditure, £20m forecast in Reserves pending the allocation of budget to departments and the balance within department forecasts.

The £126m forecast includes:

 £39m for the co-funding of payroll across businesses (£98m in 2020)  £39m on the Test and Trace programme (£16m in 2020)

 £16m on Economic Recovery to support businesses

 £8m on the Covid-19 vaccine

 £5m on additional costs within Health and Community Services

including service recovery

£5m on the running and dismantling of the Nightingale Wing (£10m on

the Nightingale construction and fit out in 2020)

£2m on additional income support costs (£6m in 2020)

As at the end of June, £63m of attributable Covid-19 costs had already been recorded (£69m to the same point in 2020).

Reserves

The Reserves are made up of four elements and within them there are various components as follows:

General Reserve - For all urgent and unforeseen, short-term funding needs that cannot be met from existing Heads of Expenditure.

Covid-19 - For Covid-19 related expenditure

Centrally Held Items for specific purposes e.g. Pay awards, pension and social security increases, smoothing reserves for the markets and Court & Case Costs, Historic Abuse Redress Scheme

Capital Reserves - Provides funding to undertake assessment of proposals for projects and develop robust and comprehensive business cases. Risk & Inflation - to meet inflation related to capital projects and provides central budget capacity to compensate for risks inherent in the delivery of capital projects.

General  Centrally  Capital To 30 June 2021 Reserve COVID-19 Held Items The Reserves  Reserves

TOTALS

£m £m £m £m £m

2021 Gov. Plan Allocation 14.3 40.0 10.8 65.1 3.4 Carry forward from 2020 60.1 26.8 4.2 91.1 0.0 Opening Budget 2021 74.4 66.8 15.0 156.2 3.4

Transfers in to Reserves in 2021 (0.1) 0.0 0.1 0.0 0.0 Drawdowns to departments  (16.0) (25.0) (6.9) (47.9) (0.9)

Total Unallocated Budget 58.3 41.8 8.2 108.3 2.5

Department Forecast (6.0) (19.8) 0.0 (25.8) 0.0 Projects Forecast (0.6) 0.0 0.0 (0.6) 0.0 Forecast Available Balance 51.7 22.0 8.2 81.9 2.5

Ring fenced and potential calls (not forecast) (37.2) (17.8) (4.2) (59.2)

Available Balance 14.5 4.2 4.0 22.7 1.5

Table 9 - Summary balances of centrally held reserves

Notes:

The Capital Reserves have been excluded from the surplus/deficit position reported in the summary of this section.

The Projects forecast is not included when determining the forecast deficit.

Where funding has not been allocated to departments, a forecast is held against Reserves to recognise the anticipated spend in the year.

From the £108.3m (£110.8m including capital reserves) Reserves budget unallocated as at 30 June, an additional £25.8m is forecast to be spent from department Heads of Expenditure in 2021 with a further £0.6m allocated and spent in projects per the table below.

Total Forecast Spend from Unallocated Reserves 26.4

Table 10 - Forecast 2021 Spend from Unallocated Reserves

Further to the amounts forecast to be spent in 2021 against the budget still held in Reserves, there are also amounts ringfenced as shown in the table on the previous page. Ringfencing these existing approvals is a way of identifying funding for known or possible costs without increasing future approval requirements to alleviate pressure on the Consolidated Fund.

A reconciliation from the budgets approved in the Government Plan for Reserves to the total budget as at June is provided in Appendix 4.

Fiscal Stimulus

The Fiscal Stimulus Fund was established in the Government Plan 2021 24 with a balance of up to £50m to be funded from the borrowing facility as required as part of the measures put in place to provide timely, targeted and temporary measures to support economic recovery after the Covid-19 pandemic.

Only the amounts required to meet the expenditure needs to date have been drawn down through the Fund to limit any borrowing required.

Funding available £50.0m Identified projects £29.6m Approved £8.9m

Spent £0.3m

Graph 10 - Summary Position of the Fiscal Stimulus Fund

Most approvals were made at the end of quarter two following a period of establishing appropriate projects and the associated governance.

Trading Operations

The Trading Operations comprise:

 Jersey Car Parking to provide public parking facilities funded through

the collection of parking revenue and fines.

 Jersey Fleet Management to procure and maintain the vehicle fleet for

the Government and supporting departments.

As with most other areas of the organisation, Covid-19 has had an impact on the Trading Operations. The main impact has been through disrupted income generation for Jersey Car Parking due to reduced travel and the removal of parking charges during lockdown.

Jersey Car Parking (JCP)

£1.7m

Movement from 2020

Summary of key movements from 2020 (Decrease in net income of £1.7m/77%):

For 2021 JCP is forecasting to achieve a net surplus of £0.5m before depreciation which is in line with the original budget.

However, it is to be noted that the budgeted income for 2021 is £2.0m

less than in 2020 due to the impact of Covid-19 on the public s parking behaviour e.g. increased working from home, and it is unclear how this will be impacted over the course of the rest of 2021. Income received to the

end of June 2021 is £1.1m more than in the same period in 2020. It is hoped that with a continued return to work income levels will increase further.

The budgeted £1.7m financial return to the Infrastructure, Housing and Environment department was not made in 2020 due to the reduction in income but it is planned and included in the 2021 forecast above.

Jersey Fleet Management

£2.0 m £0.2m

2021 Net income  Movement from 2020

Projects - Highlights

Departments started 2021 with £114m allocated to the capital programme (excluding central reserves) as part of the Government Plan 2021-2024 plus £55m of existing allocations from previous years and in year allocations of

2020 C/fwd 2021 Transfers

GP Budget £114.0m £55.3m £21.2m

Forecast £171m

Actuals £53m

Graph 11 - 2021 spend on projects

£21m. This gives departments a total budget of £190m for 2021 to the end of June.

Just under £53m has been spent across departments on projects to the end of June, with departments forecasting to spend £171m across all projects in 2021, including:

 £22.4m on the Integrated Technology Solution (£2.7m of budget is

currently held against Central Reserves to be accessed as required and subject to approval), with spend at the end of June of £5.4m. The discovery phase has been completed, with ongoing rescheduling of Fit to Standard workshops due to key personnel availability constraints. The integrated plan is delayed due to the lack of capacity in some workstreams.

 £31.2m on second phase of the Our Hospital project, with spend at the

end of June of £24m. £12.4m has been spent to June on site acquisitions and a further £9m with the Design Delivery Partner. Additional funding of £17.8m was presented to the States Assembly following approval of the Ministerial Decision from the Minister for Treasury and Resources. This was previously supported by the Council of Ministers and Political Oversight Group to fund the project for the period July to September in lieu of the main funding being raised in October.

Sufficient funding has been identified from existing resources to enable the Our Hospital project to progress in 2021 pending the States Assembly debate on next steps.

 £18.1m on the Liquid Waste Strategy, with spend at the end of June

of £4.1m. Construction of the new sewage treatment works has progressed well despite the challenges posed by the Covid-19 pandemic but with ongoing delays. However, a new staged completion

to deliver the project and secure additional benefits to IHE have been agreed with the main contractor and will be underpinned by a supplementary agreement with project completion by October 2023. The Contractor will be encouraged to advance the staged completion dates.

£13.0m on infrastructure projects on roads, drainage networks and sea

defences, with spend at the end of June of £4.1m. During Q2 Highways maintenance has been working on the design and preparation of contract documents for a very busy period of resurfacing and micro asphalt during July and August 2021. The resurfacing of part of Bagatelle Road, part of Princes Tower Road and part of Rouge Bouillon is planned for the school summer holidays due to their proximity to schools. Micro asphalt is planned for the remainder of Princes Tower Road, part of Grande Route de St Martin, La Route du Maufant, La Rue du Hucquet and La Rue du Villot. Micro asphalt will be carried out by

a specialist UK contractor during August 2021. Drainage maintenance works continue to progress well in Q2, the capital works to re-line the sewer at Ouaisne Marsh is complete. A new relief sewer in Vallee des Vaux is due to go to tender before Q2. Design works have commenced for the re-lining of sewers in Trinity . Projects are on schedule within the programme.

£8.5m on the prison phase 6, with spend at the end of June of £1.8m.

The project is progressing well but currently 8.5 weeks behind schedule. The delays are due to inclement weather and Covid-19 restrictions. These events will give rise to an extension to the contract period. A claim has now been received and is being reviewed. The programme will be amended and reset once the extension of time is agreed.

Social Security Funds

The charts below provide a summary of the forecast 2021 income and expenditure compared to the 2020 outturns for the three main operational funds.

The main challenge in 2021 and future years is anticipated to be the management of contributions debt and the cash impact of this.

£183.0m 2021 Income

£192.0m 2020

£269.4m 2021 Expenditure

£263.6m 2020

Deficit of £86.4m forecast (£71.6m deficit in 2020).

Transfer of £95.1m from the Social Security Reserve Fund planned to cover deficit and manage deferral cash impact and capital expenditure.

Transfers from Reserve will be minimised.

Graph 12 - Social Security Fund income and expenditure 2021 forecast and 2020 outturn

£34.4m 2021

Income

£40.4m 2020 Expenditure in 2021 includes £11.3m transfer

to HCS to support the Jersey Care Model.

Deficit of £16.0m forecast (£5.6m surplus in £50.4m 2021 2020)

Expenditure

£34.8m 2020

Graph 13 - Health Insurance Fund income and expenditure 2021 forecast and 2020 outturn

£63.2m 2021

Income

£65.8m 2020 Income in 2021 includes £31.0m

supplementation grant (£29.9m in 2020).

Surplus of £7.0m forecast (£10.5m surplus in £56.2m 2021 2020)

Expenditure

£55.3m 2020

Graph 14 - Long Term Care Fund income and expenditure 2021 forecast and 2020 outturn

Investment Performance

The Government operates a Common Investment Fund (CIF) which has been set up as an administrative arrangement to enable the pooling of funds to maximise investment returns and manage risk over a broader portfolio.

Headlines

CIF SSR SR

Latest

valuation £4,170m YTD

performance(vs market  8.7% (6.6%) benchmark)

£2,236m 9.5% (7.2%)

£1,052m 7.9% (6.0%)

Graph 15 - Investment Performance Headlines

2020 Performance

During 2020 the CIF generated a total return of 8.1%, exceeding its market weighted benchmark by 0.8%. Although good performance, the headline figure masks considerable in year volatility. The chart below shows a steady recovery from the February/March falls triggered by Covid-19 and continuing rises up to the most recent audited data in June 2021. (Chart shows cumulative returns since 01/01/20).

Each underlying invested Fund has a target return in addition to a market benchmark which is it tracked against.

20.00% CIF return Benchmark return

10.00%

0.00%

-10.0%

Graph 16 - 2020 performance - CIF returns vs benchmark

2021 YTD June Performance

Over the first 6 months of the year, the CIF in totality delivered a net return of 8.7%, exceeding the apportioned market benchmark by 2.1%. Returns to date have been driven by continuing positive performance in the equity class and alternative class. All classes generated a positive return except fixed income which generated a slightly negative return.

Investment performance for the first half of 2021 is summarised in the attached table:

Investment Assets Social Security (Reserve) Fund

Strategic Reserve Fund

Health Insurance Fund

Jersey Currency Fund

Jersey Reclaim Fund

Long Term Care Fund Stabilisation Fund

Ecology Fund

Dwelling Houses Loan Fund CI Lottery Fund

Consolidated Fund

Housing Development Fund

Value 31/12/2020

£m

2,096.7 975.2 95.5

59.1 17.1 16.6

0.7 0.5 0.3

0.1 0.1

0.0

Value 30/06/2021

£m

2,235.5 1,052.3 100.3 61.9 18.1 16.6

0.7 0.5 0.3

0.1 0.1

0.0

YTD Gain/(Loss) £m %

198.8 9.5%

77.1 7.9%

8. 5.0%
   9. 4.8%

0.9 5.5% 0 0.1% 0 -0.7% 0 3.5% 0 -0.5% 0 0.0% 0 0.0% 0 0.0%

YTD Drawings

£m

-60 0 0 0 0 0 0 0 0 0 0 0

Table 11 - Investment performance for the first half of 2021

As seen in the table above, the largest Funds have seen strong gains in the first half of the year, building on the gains made at the end of 2020. The portfolio continues to be closely monitored by the Treasury Advisory Panel.

Investment performance is best measured over the long-term reflecting our investment horizon. The annualised three-year net performance of the CIF is 8.3%, exceeding the market benchmark of 7.4% indicating, over the long term, the CIF (after fees) has performed better than the market.

Appendices

Appendix 1 - Fiscal Stimulus Projects Identified

Appendix 1: Fiscal Stimulus Projects Identified

Total Project Sponsoring Dept Reference Organisation Project Title Amount £000

Tranche One

CLS FS 20-008 Jersey Citizens Advice Bureau Website/Digital Channels 50

FS 20-029 CLS Howard Davis Hall Redevelopment 750

FS 20-071 Jersey Employment Trust Acorn collections and processing facility 808

FS 20-099 CLS Unemployment Support 1,250 CLS Total 2,858 CYPES FS 20-001 Jersey Scouts Refurbishment of Kenneth Faucon Hall 51

FS 20-002 Local Church - Ebenezer Kitchen/Refreshment Area 11

FS 20-038 Jersey Youth Service First Tower Youth Project Development 1,500

FS 20-039 Jersey Youth Service Queens Silver Jubilee Activity Centre Crabbe 32

FS 20-041 Trinity Youth Centre Alterations to Trinity Youth Centre 828

FS 20-051 CYPES RETRAIN Skills  1,700

FS 20-102 Jersey Scouts Jersey Scouts Refurbishment of St Lukes Hall 50 CYPES Total 4,172 HCS FS 20-069 Brook Jersey Brook Jersey Premises 189 HCS Total 189 IHE FS 20-009 Jersey Cheshire Home Solar PV Panels 67

FS 20-020 IHE Coronation Park Paddling Pool 750

FS 20-021 Jersey Cricket Ltd  Grainville Cricket Facility Refurbishment 300

FS 20-027 Jersey Baptist Church Ltd Facility Modernisations 165

FS 20-034 The Jersey Race Club Racecourse improvements 38

FS 20-057 IHE Springfield (Fort Regent Alternative Facilities) 1,965

FS 20-060 7 Overseas (Jersey) Squadron, Air CadetsAir Cadets Building Maintenance  204

FS 20-061 Enable Jersey Changing Places - St Brelades Bay 87

FS 20-068 IHE Oakfield - Fort Regent Alternative Facilities 3,148

FS 20-077 Jersey Spartans Athletics Club JSAC Clubhouse Upgrade 580

FS 20-084 Jersey Padel Jersey Padel Community 425

FS 20-104 IHE FB Fields Sports Pavilion Rebuild 569 IHE Total 8,298 OCE FS 20-016 Jersey Opera House Jersey Opera House Refurbishment 2,237

FS 20-024 Jersey Heritage Hamptonne - Agricultural Museum  1,308

FS 20-025 Jersey Heritage La Hougue Bie - Gallery & Workshop 271

FS 20-037 Jersey Consumer Council Consumer Confidence & Data Security 37

FS 20-049 RJA&HS RJA&HS Grounds Refurbishment 495

FS 20-074 Jersey Art Centre Jersey Art Centre Renovation 2,960 OCE Total 7,308

Tranche Two

CLS FS 20-163 The Shelter Trust Women Only Accommodation 190 CLS Total 190 CYPES FS 20-171 Beaulieu Convent School Beaulieu Convent School - Sports Centre  1,500

FS 20-125 Every Child Our Future  Every Child Our Future Summer School  60

FS 20-160 Jersey Scouts Association Refurbishment of Les Creux Scout Hall  93

FS 20-161 Jersey Scouts Association Refurbishment of Jersey Scout Centre, St Ouen 244 CYPES Total 1,897 HCS FS 20-026 Brighter Futures Springboard - Digital Strategy 135

FS 20-136 Health and Community Services Domiciliary Care Market Stimulation 622

FS 20-107 Jersey Action Against Rape Refurbishment of JAAR premises 12

FS 20-116 Jersey Action Against Rape Counselling Hours  10

FS 20-135 Jersey Action Against Rape Develop and Ecommerce and Event Ticket Site 5

FS 20-131 Jersey Hospice Care Recruitment & Training of 5 Health Care

Assistants 76 HCS Total 860

IHE FS 20-150 Durrell Wildlife Conservation Trust WGorilla house project)arty Pig enclosure and other works (part of  980

FS 20-153 Healing Waves Healing Waves - Adaptive Surf Centre 411 FS 20-106 Jersey Association of Youth and FriendshipEssential maintenance grant for JAYF hostels 30

FS 20-148 Jersey Biodiversity Centre Engage Jersey with Nature 2021  56 IHE Total 1,477 OCE FS 20-091 Jersey Heritage Jersey Heritage - membershipporting system upgrades , website, sup- 227

FS 20-174 National Trust Morel Farm 2,166 OCE Total 2,393

Grand Total 29,642

Appendix 2: Detail of forecast spend against cumulative Government Plan growth allocations by Department

Forecast spend against growth allocations by department, excluding Covid-19 related growth

Budget  Forecast  Actuals  Variance Department CSP ref Programme (£000) (£000) (£000) (£000)

CLS GP20-CSP3-4-02 Migration Policy 108  108  38  - CLS GP20-CSP4-1-01 Compensation for Mesothelioma 100  30  -  70 CLS GP20-CSP4-1-04 Food costs bonus 340  340  -  - CLS GP20-CSP4-1-05 Single Parent Component P.113/2017 2,539  2,539  1,270  - CLS GP20-CSP4-2-01 Housing PDB and long term plan 300  300  150  - CLS GP20-CSP4-2-02 Tenants rights 170  170  119  - CLS GP20-CSP4-3-01 Care Needs at Home 550  150  -  400 CLS GP20-CSP4-3-02 Disability social inclusion 311  311  53  - CLS GP20-OI3-06 GST de-minimis changes 92  92  - CLS GP20-OI-Non-04 Reduction in CLS contingency -1,000  -1,000  -1,000  - CLS GP21-CSP4-AMD11AMD: Beresford Street Kitchen 300  300  150  - CLS Total 3,810  3,340  780  470 COO GP20-OI3-01 Building Revenue Jersey Team 1,140  1,140  -  - COO GP20-OI3-02 Commercial Services - enhanced capabilities 1,450  1,450  308  - COO GP20-OI3-09 Modernisation and Digital - enhanced capabilities 5,000  5,000  2,500  -

People and Corporate Services - enhanced

COO GP20-OI3-10 capabilitiesSupply Jersey Maintenanceto Pay analysis  , Licencing and Procure  133  7, 133 700  3,850 133  - -

 7,700

COO GP20-OI3-12

COO GP20-OI3-13 Supporting One Gov - Tgic partner) eam Jersey (HR/OD strate- 252  252  126  - COO GP20-OI3-14 Technology Transformation Programme 4,567  4,567  3,100  -

COO GP21-OI3-15 Commercial Services Restructure 2,500  2,500  1,250  - COO Total 22,742  22,742  11,267  - CYPES GP20-CSP1-1-01 Children s Change Programme 864  864  432  - CYPES GP20-CSP1-1-02 Independent Jersey Care Inquiry P108 876  764  343  112 CYPES GP20-CSP1-1-03 Policy/legislation service delivery 2,150  1,550  522  600 CYPES GP20-CSP1-1-04 P82 Children s Services Early Intervention 3,866  3,134  755  732 CYPES GP20-CSP1-2-01 Higher education 6,199  6,199  2,890  - CYPES GP20-CSP1-2-02 Improving educational outcomes 3,031  2,939  1,399  92 CYPES GP20-CSP1-3-01 Involving and engaging children 330  266  132  64 CYPES GP20-CSP2-1-02 Preventable diseases 179  179  - CYPES GP20-CSP2-3-03 Maintaining health and community care standards 600  600  300  - CYPES GP20-CSP3-2-04 Digital Jersey Academy 366  366  183  - CYPES GP20-CSP3-4-01 Skills Jersey 675  675  338  - CYPES GP20-CSP3-5-03 Jerriais 386  386  128  - CYPES GP21-CSP1-1-07 States Decision - Youth Service Move On Cafe 53  21  -  32 CYPES GP21-CSP1-2-05 Jersey Education Model - Funding Review 7,946  7,946  2,886  - CYPES GP21-CSP1-3-03 States Decision - Youth Service English as Addition-

al Language 150  80  -  70 CYPES Total 27,671  25,969  10,308  1,702

FSDE GP20-CSP2-1-01 Inspiring an Active Jersey  779  779  843  - FSDE GP20-CSP3-1-03 Future Economic Partnership Goods and Borders  250  178  -  72

Cluster

FSDE GP20-CSP3-2-02 Competition policy and JCRA 250  250  38  - FSDE GP20-CSP3-2-03 Delivering the Digital Policy Framework 541  500  208  41 FSDE GP20-CSP3-2-05 Digital Jersey growth 1,200  1,200  1,200  - FSDE GP20-CSP3-2-06 Economic Framework and Productivity Support 1,000  1,000  118  - FSDE GP20-CSP3-2-08 Jersey Financial Stability Board 50  50  25  - FSDE GP20-CSP3-2-10 Promoting Jersey 1,000  1,000  1,000  - FSDE GP20-CSP3-2-11 Rural Economy Strategy 272  272  -  - FSDE GP20-CSP3-3-01 AML / CFT 550  529  242  21 FSDE GP20-CSP3-3-02 Jersey Finance Growth 750  750  375  - FSDE GP20-CSP3-5-01 Cyber Security growth 600  269  -5  331 FSDE GP20-CSP3-5-02 Heritage, Arts & Culture 963  963  457  - FSDE GP20-CSP5-2-03 Jersey National Park 150  150  75  - FSDE GP21-CSP3-2-12 JCRA Reconstitution 150  150  32  - FSDE GP21-OI3-19 Digital Jersey grant shortfall 303  303  -  - FSDE GP21-CSP3-AMD12AMD: Heritage, Arts & Culture 750  750  -  - FSDE Total 9,558  9,093  4,608  465 HCS GP20-CSP2-1-02 Preventable diseases 551  551  276  - HCS GP20-CSP2-2-02 Mental Health 4,800  4,800  2,400  - HCS GP20-CSP2-3-01 Digital Health and Care Strategy 700  700  350  - HCS GP20-CSP2-3-02 Health P82 reinstate 2019 new and recurring 3,597  3,597  1,799  - HCS GP20-CSP2-3-03 Maintaining health and community care standards 9,400  9,400  5,000  - HCS GP20-CSP4-3-01 Care Needs at Home 70  70  35  - HCS GP20-CSP4-3-02 Disability social inclusion 60  60  30  - HCS GP21-CSP2-1-05 Jersey Care Model 6,600  6,600  1,104  - HCS GP21-CSP2-3-06 Air Ambulance Services 395  395  198  0 HCS Total 26,173  26,173  11,192  0

IHE GP20-CSP3-5-04 Sport division - minor capital replacements 200  200  112  - IHE GP20-CSP4-2-01 Housing PDB and long term plan 250  250  -  - IHE GP20-CSP5-2-02 Countryside access 200  151  26  49 IHE GP21-CSP5-2-04 Natural Environment 300  220  34  80 IHE GP21-CSP5-2-05 Marine Resources Management 250  250  48  - IHE GP21-OI3-20 28-30 The Parade 1,141  1,141  744  - IHE Total 2,341  2,212  963  129 JHA GP20-OI3-06 GST de-minimis changes 108  108  75  - JHA GP20-OI-Non-04 Other growth reductions to find -61  -61  -  - JHA GP21-OI3-16 Re-organisation - JHA  314  314  157  - JHA Total 361  361  232  - SoJP GP20-CSP1-1-01 Children s Change Programme 127  127  64  - SoJP GP20-CSP1-1-03 Policy/legislation service delivery 594  594  297  - SoJP GP20-CSP3-2-07 Financial Crimes Unit 447  447  224  - SoJP GP20-CSP3-3-01 AML / CFT 400  400  200  - SoJP GP20-OI3-11 Policing 2020-23 1,630  1,630  815  - SoJP GP20-OI-Non-04 Other growth reductions to find -55  -55  -28  - SoJP GP21-CSP1-1-08 SARC - Dewberry House (SOJP) 150  150  75  - SoJP Total 3,293  3,293  1,647  - JOA GP20-CSP3-1-07 Reversing the decline in Jersey s Overseas Aid

contributions 2,040  2,040  -  - JOA Total 2,040  2,040  -  -

Non-Mins GP20-CSP1-1-01 Children s Change Programme 335  314  173  21 Non-Mins GP20-CSP1-1-03 Policy/legislation service delivery 100  100  -  - Non-Mins GP20-CSP2-2-03 Mental Health legislation 629  580  315  49 Non-Mins GP20-CSP3-1-02 Brexit and International Trade 110  110  61  - Non-Mins GP20-CSP3-2-07 Financial Crimes Unit 505  426  197  79 Non-Mins GP20-OI3-03 Domestic Compliance ( Spend to Raise ) 105  104  61  1 Non-Mins GP20-OI-Non-01 Comptroller and Auditor General additional

funding 25  25  13  - Non-Mins GP20-OI-Non-03 Judicial Greffe additional funding 158  131  40  27

Non-Mins GP20-OI-Non-05 Viscount s Department additional funding 325  190  58  135 Non-Mins GP20-OI-Non-06 Legal Aid Office 400  173  73  227 Non-Mins GP20-OI-Non-07 Probation Service additional funding 35  35  18  - Non-Mins GP21-OI-Non-07 Probation - BASS funding, regrading, trainee post 161  161  80  - Non-Mins GP21-OI-Non-08 C&AG Inflation 13  13  7  -

Bailiff s Office - additional for Crown appointment

Non-Mins GP21-OI-Non-10 pension increase awarded by SEB 80  80  40  - Non-Mins Total 2,981  2,442  1,136  539

OCE GP20-CSP2-3-04 Regulation of Care - income deferred 200  200  -0  - OCE GP20-CSP3-1-06 Continuation of External Relations funding 1,234  943  437  291 OCE GP20-OI3-07 Guernsey-Jersey Joint Working Programme 40  1  0  39 OCE GP21-OI3-17 Re-organsiation - Ministerial Support 1,390  1,390  636  - OCE GP21-OI3-18 Re-organisation - Communications 623  623  255  - OCE Total 3,487  3,157  1,328  330 SA GP20-OI2-01 States Greffe extended services 534  534  267  - SA GP20-OI5-01 Electoral registration 34  34  15  - SA GP20-OI-Non-04 States Assembly additional funding 994  994  497  - SA Total 1,562  1,562  779  - SPPP GP20-CSP1-1-01 Children s Change Programme 190  190  93  - SPPP GP20-CSP1-1-02 Independent Jersey Care Inquiry P108 679  446  141  233 SPPP GP20-CSP1-1-03 Policy/legislation service delivery 385  298  112  87 SPPP GP20-CSP1-2-02 Improving educational outcomes 75  75  41  - SPPP GP20-CSP1-3-01 Involving and engaging children 725  725  337  - SPPP GP20-CSP1-3-02 Public Services Ombudsman 378  378  378  - SPPP GP20-CSP2-1-02 Preventable diseases 470  270  37  200 SPPP GP20-CSP2-2-01 Adult Safeguarding Improvement Plan 100  76  24  24 SPPP GP20-CSP3-2-09 Migration Policy 75  75  41  - SPPP GP20-CSP4-1-02 Financial independence in old age 50  50  50  - SPPP GP20-CSP4-2-01 Housing PDB and long term plan 175  175  40  - SPPP GP20-CSP4-2-02 Tenants rights 130  130  -  - SPPP GP20-CSP4-3-02 Disability social inclusion 110  52  25  58 SPPP GP20-OI1-01 Census 2021 450  450  368  - SPPP GP20-OI3-04 Enabling policy excellence across the Government 20  20  15  - SPPP GP20-OI4-01 Delivering effective financial management 225  225  113  - SPPP GP21-CSP4-AMD17AMD: Research on a poverty strategy 150  150  -  - SPPP Total 4,387  3,785  1,815  602 T&E GP20-CSP3-1-08 Tax Policy and International Team investment 1,753  1,753  877  - T&E GP20-CSP3-2-05 Digital Jersey growth -303  -303  -  - T&E GP20-CSP5-1-01 Climate Emergency Fund 2,700  2,500  1,118  200 T&E GP20-OI3-01 Building Revenue Jersey Team 1,545  1,545  773  - T&E GP20-OI3-03 Domestic Compliance ( Spend to Raise ) 1,457  1,457  729  - T&E GP20-OI3-05 Government of Jersey Bank charges 300  470  276  -170 T&E GP20-OI3-08 Increased audit fees 75  75  -  - T&E GP20-OI4-01 Delivering effective financial management 2,500  2,500  1,250  - T&E GP21-OI4-2 Insurance premiums 2,194  2,194  1,097  -

AMD: Review of funding public services delivered

T&E GP21-OI3-AMD10 by parishes  50  50  -  - T&E Total 12,271  12,241  6,119  30 Grand Total 122,677 118,410 52,173 4,268

Covid-19 related growth

Budget  Forecast  Actuals  Variance Department CSP ref Programme (£000) (£000) (£000) (£000)

CLS GP21-CSP4-C-01 Payroll Co-Funding Ph III (COVID) 11,300  11,300  11,300  - CLS GP21-CSP4-C-02 Income Support Costs (COVID) 7,498  1,607  829  5,891 CLS Total 18,798  12,907  12,129  5,891 CYPES GP21-CSP1-C-01 Schools catch-up programme (COVID) 904  904  333  - CYPES Total 904  904  333  - FSDE GP21-CSP3-C-01 Economic Recovery (COVID) 15,500  15,500  8,418  - FSDE Total 15,500  15,500  8,418  - HCS GP21-CSP2-C-01 COVID Vaccine 5,474  5,474  1,942  - HCS GP21-CSP2-C-02 Nightingale Field Hospital (COVID) 4,313  582  373  3,731 HCS GP21-CSP2-C-05 Warehousing Staffing and logistics (COVID) 338  338  115  - HCS Total 10,125  6,394  2,430  3,731 IHE GP21-CSP2-C-03 Nightingale Field Hospital (COVID) 4,067  4,067  1,224  - IHE GP21-CSP2-C-06 Sport CV19 income shortfall (COVID) 2,137  804  -  1,333 IHE GP21-CSP5-C-01 CV19 Bus Contract (COVID) 2,000  2,000  -  - IHE Total 8,204  6,871  1,224  1,333 JHA GP21-CSP2-C-04 Test & Tracing Programme 2 - On Island Testing

Capacity (COVID) 30,000  30,000  15,432  - JHA Total 30,000  30,000  15,432  -

T&E GP21-OI4-C-1 Revolving Credit Facility (COVID) 3,746  2,826  1,464  920 T&E Total 3,746  2,826  1,464  920

Grand Total 87,277 75,402 41,430 11,875

Appendix 3: Covid-19 Pressures

2021  2021  2021  2021 Department Description Budget  Forecast  Actuals  Variance (£000) (£000) (£000) (£000)

CLS Agency staffing costs associated with the operation of the Covid Helpline 700  700  0  - CLS Income Support Costs (COVID) 7,498  3,007  855  4,491 CLS Payroll Co-Funding Ph 3 (COVID) 11,300  11,300  11,300  - CLS Income Support Costs (COVID) -814  -814  -  - CLS Payroll Co-Funding Ph 4 (COVID) 27,600  27,600  19,300  - CLS Enhanced Flu Vaccination -  91  91  -91 CLS Total 46,284  41,884  31,546  4,400 COO M&D Track and Trace related costs -  30  25  -30 COO M&D Coronavirus -  10  -0  -10 COO P&CS Coronavirus -  -  -  - COO Total -  40  24  -40 CYPES Additional incidental COVID19 operating costs -  897  693  -897 CYPES Hardship grants to parents struggling with school fees at GoJ and private fee paying schools -  73  64  -73

CYPES Jersey College for Girls and Prep - incidential COVID19 operating costs -  134  51  -134 CYPES Lateral Flow Device Tests -  30  30  -30 CYPES Loss of Income -  291  200  -291 CYPES Victoria College and Prep - incidential COVID19 operating costs -  165  73  -165 CYPES Schools Coronavirus Catch-up Package 904  904  333  - CYPES Devices for On-line Learning 190  190  24  - CYPES Children s Mental Health and Wellbeing (COVID wellbeing) 955  955  218  - CYPES Total 2,049  3,638  1,685  -1,589 FSDE Essential Air Activity 242  -  -  242 FSDE Total 242  -  -  242 HCS Service Recovery Costs due to Covid 1,716  3,600  -  -1,884

 Estimated additional staff non staff expenditure incurred as a result of

HCS COVID19 continuation from 2020 pressures Includes COVID LV Beds 3,967  3,967  1,820  0 HCS Nightingale Field Hospital 4,313  582  373  3,731

HCS Warehousing Staffing and logistics 338  338  115  - HCS COVID Vaccine 6,448  7,600  1,942  -1,152 HCS Total 16,783  16,087  4,250  696 IHE Additional staff expenditure incurred as a result of COVID19 -  25  23  -25 IHE Additional general expenditure incurred as a result of COVID19 -  373  294  -373

Additional funding to LibertyBus to maintain core bus network during period

IHE of significant income loss 2,000  2,000  -  - IHE Closure of facilities has resulted in lost income 2,137  804  -  1,333

IHE Continued hire of the Nightingale Wing of the General Hospital 4,067  4,067  1,224  - IHE Total 8,204  7,269  1,541  935 JHA Ambulance Service cost pressures -  105  105  -105 JHA Customs and Immigration cost pressures -  2  2  -2 JHA Field Squadron cost pressures -  -  -  - JHA Fire and Rescue cost pressures -  7  7  -7 JHA JHA Directorate cost pressures -  -  -  -

Passport and legalisation of documents fees underachievement of income

JHA due to travel restrictions currently in place -  -  -  - JHA Prison Service cost pressures -  10  8  -10

JHA Test & Tracing Programme 2 30,000  30,000  15,434  - JHA Total 30,000  30,124  15,556  -124 SoJP Additional staff expenditure incurred as a result of COVID19 -  13  13  -13 SoJP Total -  13  13  -13

Underachievement in Permit Fees: P49 Entertainment Licenses waived for

Non- Mins the year by Baillif (no entertainment allowed under Covid-19 restrictions) -  20  -  -20 Non- Mins Due to Covid restrictions all Jury trials to be held at the Trinity Showground  -  170  167  -170

until 28th May

Non- Mins Total -  190  167  -190 OCE Economic Recovery 15,500  15,500  8,418  - OCE Total 15,500  15,500  8,418  - States AssemblyStates Members Covid-19 related Reviews -  80  17  -80 States AssemblyAdditional Specialist Secretariat Support for critical Government Bodies  -  85  36  -85 States Assembly Total -  165  53  -165 T&E Revolving Credit Facility 3,746  2,996  1,464  750 T&E Total 3,746  2,996  1,464  750 Unallocated Test & Tracing Technology 1,220  1,220  -  - Unallocated Test & Tracing Programme additional 7,280  7,280  -  - Unallocated Total 8,500  8,500  -  -

Grand Total 131,307  126,406  64,717  5

Note: actual costs of the economic support schemes including the Co-funded Payroll Scheme are recognised in arrears as claims are submitted and processed in the following month.

Appendix 4- Reconciliation of Government Plan budget

Appendix 4: Reconciliation of Government Plan budget to budget as at 30 June

2021

Gov2e0r2n1-  ForCwaarrrdy  Additional  Alloca- Transfers  mental  Budget as  Gov2 P0 l2a0n  AIndYjuesatr- BAupdpgr2oev0t ea2ds1

Depart- Approved

Department PlamneAnst  from  Funding Restieornv eosf  Ptroo/jferocmts  Transfers at JNuenaer  Total NRE  ments at June Amended 2020 Cash Non Cash Non Cash

£ 000 £ 000 £ 000 £ 000 £ 000 £ 000 £ 000 £ 000 £ 000 £ 000

Ministerial Departments

Office of the Chief ExFinancial Services and Digital Economy ecutive 33,561 8,505  1,092  (152) 34,501

 91  152  8,748

Jersey Overseas Aid 12,374  -  12,374

Chief Operating Office 36,638  1,732  2,156  40,526 659  659 Children, Young People,

Education and SkillsCustomer and LInfrastructure Housing and Environment ocal Services 44,571 91,715  (684) 2,236 1,453 195  (1,436) (56) 125  16092,03546,067,303 47,000 204 10  47,00020410