Annual Business Plan 2009 [Proposition and full Report]

STATES OF JERSEY

DRAFT ANNUAL BUSINESS PLAN 2009

Council of Ministers

F.H. Walker T.A. Le Sueur P.F.C. Ozouf M.E. Vibert B.E. Shenton W. Kinnard T.J. Le Main F.E. Cohen P.F. Routier G.W.J. de Faye

Senator Chief Minister

Senator Treasury and Resources and Deputy Chief Minister Senator Economic Development

Senator Education, Sport and Culture

Senator Health and Social Services

Senator Home Affairs

Senator Housing

Senator Planning and Environment

Senator Social Security

Deputy Transport and Technical Services

W.D. Ogley Chief Executive

DRAFT ANNUAL BUSINESS PLAN 2009 PROPOSITION

The States are asked to decide whether they are of opinion: to receive the draft Annual Business Plan 2009 and –

1. to approve the summary key objectives and success criteria for 2009 of the following States funded bodies as shown in Part One of the draft Annual Business Plan –

i Chief Minister's Department, as detailed in Part One of the report pages 10 to 12

ii Economic Development Department, as detailed in Part One of the report pages 13 to 15

iii Education, Sport and Culture Department, as detailed in Part One of the report pages 16 to 18

iv Health and Social Services Department, as detailed in Part One of the report pages 19 to 21

v Home Affairs Department, as detailed in Part One of the report pages 22 to 23

vi Housing Department, as detailed in Part One of the report pages 24 to 25

vii Planning and Environment Department, as detailed in Part One of the report pages 26 to 28

viii Social Security Department, as detailed in Part One of the report pages 29 to 30

ix Transport and Technical Services Department, as detailed in Part One of the report pages 31 to 32 x Treasury and Resources Department, as detailed in Part One of the report pages 33 to 35

xi Jersey Airport, as detailed in Part One of the report pages 36 to 37

xii Jersey Harbours, as detailed in Part One of the report page 38

xiii States Assembly and its services, as detailed in Part One of the report pages 39 to 40

2. to approve the summary set out in Part Three of the report Summary Table A, page 94, being the gross revenue expenditure of each States funded body and, based on a provision for pay awards of 3.2% for June 2008 and 2.0% for June 2009, totalling £672,759,100, and having taken into account any income due to each of the States funded bodies, the net revenue expenditure of each States funded body totalling £574,501,300, to be withdrawn from the consolidated fund in 2009;
3. to approve the summary set out in Part Three of the report Summary Table B, page 95, being the estimated income and expenditure and estimated minimum contribution, if any, that each States trading operation is to make to the States consolidated fund in 2009;
4. to approve each of the capital projects in the recommended programme of capital projects for each States funded body for 2009, as set out in Part Three of the report Summary Table D, page 97 that requires £54,851,000 to be withdrawn from the consolidated fund;
5. to approve each of the capital projects in the recommended programme of capital for each States trading operation, as set out in Part Three of the report Summary Table E, page 98, that require funds to be drawn from the trading funds in 2009;
6. to approve in principle the total net revenue expenditure for the States funded bodies, as set out in Part Three of the report Summary Table C, page 96, for the period 2010 to 2013 and the proposed programme of capital projects for the States funded bodies for 2010 to 2013 as set out in Part Three of the report Summary Table F, pages 99; and to request the Chief Minister to present Annual Business Plans to the States within these amounts, with any additional growth in the net revenue expenditure of a States funded body being offset by compensatory savings elsewhere within the total amounts;
7. to approve the schedule of properties for disposal in 2009 in the property plan, as detailed in Part Three of the report Summary Table G, page 100 to 101 of the report;
8. to approve the Legislation Programme for 2009, as set out in Part Three of the report Summary Table H, pages 102 to 104 of the report.

CHIEF MINISTER

CONTENTS

Section  Page

Foreword from the Chief Minister   5 Financial Foreword from the Minister for Treasury and Resources   6

Part One – Department's Objectives (Blue)

Strategic Plan Review and Performance   8 Chief Minister  10 Economic Development  13 Education, Sport and Culture  16 Health and Social Services  19 Home Affairs  22 Housing  24 Planning and Environment  26 Social Security  29 Transport and Technical Services  31 Treasury and Resources (incl: Property Holdings)  33 Jersey Airport  36 Jersey Harbours  38 States Assembly and its services  39

Part Two – Finance and Resources

Financial Forecast 2008 to 2013  42 Revenue Expenditure Allocations 2009  47 Revenue Expenditure Targets 2010 to 2013  59 Capital Programme 2009 to 2013  62 Property Plan 2009  71 Legislation Programme 2009  91 Part Three - Summary Tables (Pink)

Table A  Revenue Expenditure Allocations 2009  94 Table B  Summary of States Trading Operations 2009  95 Table C  Total States Net Expenditure 2009 to 2013  96 Table D  Capital Expenditure Programme 2009  97 Table E  Capital Expenditure to be financed from Trading Funds in 2009  98 Table F  Capital Expenditure Programme 2010 to 2013  99 Table G  Schedule of Properties Proposed for Disposal in 2009  100 Table H  Legislation Programme for 2009  102

Index of Tables and Charts  Page

Table 1.1  Business and Financial Planning Cycle  9 Table 2.1  Revised Financial Forecast (July 2008)  42 Table 3.1  Net revenue expenditure movements from 2008 to 2009  47 Table 3.2  Additional funding for service pressures and initiatives  51

included in cash limits

Table 3.3  Service pressures and initiatives not included in cash limits  52 Table 3.4  Current profile of efficiency savings targets  56 Table 4.1  Build up of the revenue expenditure allocations through to 2013  59 Table 4.2  Increase in Net Revenue Expenditure 2009 to 2013  59 Table 5.1  Capital Expenditure Allocation Summary 2009 – 2013  63 Table 5.2  Reconciliation of movements from previous capital programme  65

2009 – 2013

Table 5.3  Housing Social Works Programme 2009-2013  67 Table 5.4  Total States' IT Spend 2009 to 2013  69 Table 5.5  ICT Capital Funding Allocation 2009 to 2013  70 Table 6.1   Anticipated Release of Residential Units from Previously Approved  77

  Disposals

Table 6.2  Proposed Disposals for 2009 and beyond  82 Table 6.3  Capital Projects Proposed for 2009 - 2013  83 Table 6.4  Update on Disposals approved in previous Property Plans  88 Table 6.5  Current Live Capital Projects  89

1a FOREWORD FROM THE CHIEF MINISTER

The States Annual Business Plan for 2009, published today, is a significant document, which continues the Council of Ministers' drive to improve the quality of life in Jersey.

It sets out the Council of Ministers' business proposals, confirming our determination to protect all aspects of Island life, maintain high quality public services and use the fruits of our economic success to provide proper support to the vulnerable members of our community.

It also outlines our ultimate level of spending. In the debate on the 2008 spending plans, the States gave a clear instruction to the Council of Ministers to produce a Business Plan for 2009 which was within the spending forecast agreed by the States. Accordingly, the spending plans set out in this Business Plan are within the limits agreed.

The Council has considered the Comptroller and Auditor General's report on States spending and has taken account of his conclusions. In relation to the major conclusion on pay levels the plan includes a provision for pay awards which excludes the effect of GST on the RPI. Thus a provision of 2% for pay in 2009 is expected to be 2% below the March 2009 RPI and will also reflect the Comptroller and Auditor General's conclusion. A general provision for efficiency savings in line with the review has been made and some much needed growth in the Law Officers' department has been provided. It has not been possible to provide increases in spending in relation to other areas of under funding in infrastructure maintenance and corporate departments.

In order to meet the cash limits, a rigorous prioritisation process was undertaken and inevitably a number of worthwhile areas of spending that the Council would have wished to include have had to be excluded due to a lack of available funding. These have been identified separately in the Business Plan so that States Members can take a view on whether they merit additional funding.

We have also made the process for producing the Business Plan more inclusive this year. States members have been presented with information at key points in the process. Scrutiny has been involved from the earliest meetings and has been encouraged to provide comments on the Council's proposals. The outcome of these deliberations was to reinforce the message that whilst scrutiny supported some of the proposals for increased spending the Council should propose a plan within the Cash Limit agreed last year.

The Council remains firm in its determination to deliver a sustainable long term future for our community and our finances. The programmes in this plan, if approved by the States, will achieve this balance.

The Business Plan draws on the latest financial forecast. The forecast is very positive based as it is on the new health and vitality of Jersey's economy. In 2007, a better than expected economic performance resulted in a £37 million surplus in States finances. However there is no room for complacency, if we are to secure a financially sustainable future we not only need to protect this surplus, but to continue with the agreed programme of fiscal reform to ensure that there is no underlying long term deficit.

The key elements in the Fiscal Framework are: economic growth, with an emphasis on local employment; combating inflation; the introduction of indirect taxation, in the form of a Goods and Services Tax; and increased efficiency in the delivery of public services.

Whilst we have enjoyed economic growth in recent years, we must not be complacent as Jersey will not be immune to external economic pressures. We are still on track with the efficiency programme and will achieve real savings of £20 million each year. There is an air in government of discipline, responsibility and confidence, as we continue to deliver the States Strategic Plan. It is for the States to decide whether any of the spending not included should be supported.

I am proud to present this Business Plan and I warmly commend it to the States.

Senator F H Walker  July 2008

1b. FINANCIAL FOREWORD FROM THE MINISTER FOR TREASURY AND RESOURCES

The 2009 Spending proposals are in accordance with the spending target agreed by the States in last year's Business Plan. These cash limits are extremely tight. The 3.1% overall increase in spending is less than the rate of inflation. Yet despite this reduction in States spending in real terms additional funds have been found for:

• 2% real growth in Health and Social Services;

• a 5% increase in Overseas Aid;

• a further £1 million for the Prison Improvement Plan;

• £0.4 million for new GST allowances for those low income families falling between the Income Support and Income Tax systems;

• an extra £0.25 million to maintain adequate border controls; and

• an additional £0.4 million for pupils with special needs at Mont a L'Abbe.

In addition, in line with the commitment given last year and of particular relevance at this time, benefits for the less well off will be fully index linked to insulate them from inflation, including food and fuel increases.

Enhancing services and benefits, whilst reducing total spending in real terms, has only been made possible by yet further improvements to States efficiency and through providing for pay awards at the projected rate of inflation excluding GST. If pay settlements are higher than this 2% provision then there would have to be very serious reductions in essential services including health and education. It is because maintaining tight control over the cost of the public sector pay bill is so critical to delivering vital services to the public, that for the first time ever the States are being specifically asked to approve the provision for a 2% pay award in 2009 in this Business Plan.

Although additional money has been found for the priorities listed above, this Business Plan is perhaps more interesting for what extra spending initiatives it doesn't include, rather than what it does. Pressures for enhancements to services are seemingly inexorable, yet it is just not possible to accommodate funding requests for nursery education, strategic fiscal policy/advice, international representation, increased waste recycling, and additional vocational training for people with special needs, to name but a few. The States cash limits for 2009, 2010 and 2011 assume no new taxes, but the consequence is that there is little or no money available for these, and other, new services. Indeed if inflation and pay awards are higher than projected the people of Jersey can expect to see cuts in the services they currently enjoy.

As we move forward with producing accounts and budgets in accordance with Generally Accepted Accounting Principles we are identifying the full costs of maintaining our property and essential infrastructure. The shortfall in funding is likely to be significant. Initial forecasts in this Business Plan suggest the required funding could add substantially to States spending. Managing these unavoidable demands as the figures are further substantiated will be one of the challenges of the next Strategic Plan and future business planning processes.

On a more positive note, the financial forecast shows we are on target to achieve our objective of balanced budgets over the medium term without any further tax increases. We must however, not return to the unsustainable increases in public spending of the past, as this would not only add to inflationary pressures, which would damage our economy, but also inevitably lead to additional taxation.

Senator T A Le Sueur  July 2008

PART ONE

DEPARTMENTS' KEY OBJECTIVES

AND SUCCESS CRITERIA

1. DEPARTMENTS KEY OBJECTIVES AND SUCCESS CRITERIA

Annual Business Plan

Part one sets out each Department's high-level key objectives for 2009. These objectives include the success criteria which will drive the Department's activity and resource allocation for the coming year and will be reported against in the 2009 Annual Performance Report, published in 2010.

Each of the departmental key objectives, which States members are asked to approve, are linked directly to the commitments, objectives, and where appropriate, initiatives already approved by the States in the Strategic Plan to ensure that activity and use of resource is always in accordance with the strategic direction that was approved by the States.

The early draft of the key objectives was made available to Scrutiny as soon as they became available at the end of May. The Council of Ministers has also undertaken to hold a briefing on the key objectives for all States members so that members can better understand the reasoning behind Minister's priorities and raise any questions prior to consideration of any possible amendments to the Annual Business Plan. This meeting will be held in July after the Annual Business Plan has been lodged.

A new Strategic Plan will be presented to the States for approval by the new Council of Ministers in May 2009. This will impact on departmental objectives and priorities going forward from 2010.

It is important that the detail of the Strategic Plan is kept under review to ensure that the overarching commitments and objectives are achieved. Accordingly, the Council of Ministers reviews the Strategic Plan as a matter of course during the annual business planning process, and in particular, reviews and continually updates the impact of changes in policy, or other unforeseen expenditure, on the financial framework. This is the framework within which the Executive develops policy, allocates resources and delivers services in accordance with the Strategic Plan.

A key element of the States decision on the Annual Business Plan is each department's key objectives/priorities and success criteria. States members therefore determine the priorities for Ministers and Departments.

Further information is provided in the Annex to the Annual Business Plan, where the detailed Service Analysis provides information about each of the service budget areas, their key performance indicators, changes in funding and manpower and a financial summary listing key investment areas – all linked back to one or more of the key objectives.

Departmental Business Planning

The Key Objectives and Success criteria approved by the States during the debate is used as a basis for the Departmental Business/Action Plans, with all activity set out in the departmental plans linked back to one or more of the Key Objectives. This ensures that the operational plans and individual tasks can be directly linked back, through the Key Objectives, to the Strategic Plan.

Performance Reporting

The Annual Performance Report will report on performance against the indicators set out in the Strategic Plan to show how well progress is being made against each of the Commitments. The Annex to the performance report reports back on the performance indicators set out in the Service Analysis in the Annual Business Plan Annex. Table 1.1 below shows the timetable and how the process fits together.

Table 1.1 - Business and Financial Planning Cycle

Nov  States Strategic  Scrutiny

Plan

States Business

Jan  Fiscal Strategy  Plan Phase 1

New Tax and  Agree 3-year  Financial spending  spending limits and  Framework

Feb  proposals  strategic priorities

Resource States Business  Department  Allocation

Plan Phase 2  Business Plans

Preparation

Apr  Agree resource  Annual Financial  Allocations

allocation and cash  v

limits  APcecrofournmtsa nacned  Objectives Department  Report

Business Plans  Department Spending and  Service Plans

Fiscal Strategy  States Business  Objectives Quarterly

Plan Lodged  Departmental

Jul  New Tax  Balanced Scorecard  Lodging and

proposals debates  Spending Proposals  Public Hearings

States Business

Plan Debate  Budget Sept  Budget Lodged  Spending Decisions  Proposals

Tax and Funding

Oct  Proposals

Lodging and Department  Public Hearings

Business Plans

Budget Debate  Published

Dec Tax and Funding

Decisions

CHIEF MINISTER

AIM:

The aim of the Chief Minister's Department is to:

support and advise the Chief Minister and Council of Ministers in establishing, co- ordinating, communicating and implementing States approved policies and objectives.

provide direction and leadership to the public service to ensure that policies and programmes are delivered in accordance with agreed priorities.

develop and promote international relations to further Jersey's international standing and reputation.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: The co-ordinated development and implementation of States policies.

Success criteria:

1. Strategic Plan delivered and monitored as per the agreed timetable;
2. Co-ordinated development and implementation of policies at ministerial and Corporate Management Board level;
3. The development of any new initiatives, policies or strategies prioritised and supported by all resource implications;
4. All policies are transparent, with clear accountability and reporting back on outcomes;
5. Improved public satisfaction with government;
6. More opportunities for public consultation and participation in decision-making;
7. Continued close co-operation with the Parishes;

(viii)  Closer co-operation with Scrutiny;

(ix)  Annual Business Plan to be delivered within the total amounts set in the 2008 Annual Business Plan for the years 2009 to 2013.

Strategic Plan Commitment(s): 5.1, 6.1, 6.2 and 6.4.

Objective 2: An efficient and effective public sector fit for the purpose of delivering the States Strategic Plan.

Success criteria:

1. An effective law drafting service;
2. In conjunction with the relevant departments, the continued implementation of the Social Policy framework;
3. In conjunction with the Treasury and States Departments, keep plans on track to deliver the programme of efficiency savings in the public sector year on year resulting in savings of £20 million per annum by 2009;
4. Progress against an agreed organisational development programme;
5. A business focussed Information Technology Department that underpins and supports the delivery of public services;
6. A streamlined Human Resources function which supports the welfare and development of the public sector workforce with a particular emphasis on maximising opportunities for local people;
7. Improved and more efficient access to public services and information through the customer services initiative;

(viii)  A pay settlement with all public sector pay groups which is consistent with the States

budgetary strategy in place by September 2009;

9. Public sector pension obligations properly monitored and accounted for;
10. A robust resilience/response mechanism in place to deal with strategic crises/emergencies.

Strategic Plan Commitment(s): 2.4, 6.1, 6.2 and 6.4.

Objective 3: Jersey's international responsibilities fulfilled and beneficial relations with other countries and regional organisations developed - including constitutional, political, economic, cultural and environmental links - which raise Jersey's positive international identity and promote Jersey's external influence.

Success criteria:

1. Initiatives, in collaboration with other States departments and NGOs, to promote awareness and conformance with international obligations;
2. Jersey's constitutional relationship with the UK maintained and developed;
3. An improvement in Jersey's relationship with the EU and other countries with Jersey's position increasingly recognised and acknowledged;
4. Positive reports in national and international media demonstrating a favourable international perception and image for Jersey;
5. Increased participation in international bodies and multi-lateral initiatives e.g. OECD, WTO, EU Financial Services Action Plan (where relevant);
6. A range of multi-lateral and bi-lateral links, in both financial services related and non-financial services related areas, consistent with enhanced status and increasing international recognition for Jersey developed;
7. Improved communication with the French Authorities in relation to nuclear activities on the Cotentin Peninsula.

Strategic Plan Commitment(s): 1.6, 3.4 and 5.2

Objective 4: Growing international recognition for Jersey's reputation and standing amongst various international audiences as a well-regulated, co-operative international finance centre meriting increasing market access to major economies and trading entities (e.g. the European Union); and further investment in financial services provision in Jersey.

Success criteria:

1. Increased number of international fiscal and regulatory agreements concluded with other countries;
2. Progressive dismantling of blacklists and other trade barriers erected against Jersey by other countries;
3. Plans on track to implement changes arising from new EU Money Laundering Directives; new primary and secondary legislation on financial crime; and ratification of key international conventions (e.g. Corruption, Financing Terrorism, Transnational Crime);
4. Successful outcome from the IMF review being undertaken during 2008, reporting 2009.

Strategic Plan Commitment(s): 1.6, 1.8 and 5.2,

Objective 5:  Decision-making improved and debate better informed through the provision of accurate and timely professional economic and statistical advice and information on major issues.

Success criteria:

1. Quality and availability of economic advice;
2. States assisted to meet its inflation target through the provision of timely advice on policy;
3. Statistical information available to all and all Statistics Unit releases produced independently to pre-announced release dates.

Strategic Plan Commitment(s): 1.1, 1.2, 1.3, 1.4, 1.5, 1.7, 6.1 and 6.3

Objective 6: A balance between economic growth and the supply and demand of labour, accommodation, infrastructure and resources, and the promotion of greater social inclusion.

Success criteria:

1. States approval of policies for job licensing and control over access to accommodation;
2. An Island population register implemented;
3. Plan to address the issues raised by the ageing population approved by the States

Strategic Plan Commitment(s):1.2, 1.4, 1.5, 1.7, 2.1, 2.5, 2.6 and 2.11

Objective 7:  Staff and resources managed so as to improve performance and provide value for money.

 Success criteria:

1. Financial balance achieved and total budget and spend profile consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions where appropriate;
3. Management costs minimised to ensure maximum resources are directed to front line services;
4. Explicit link between budget prioritisation process and Strategic Plan Objectives demonstrated;
5. Staff developed to help them achieve their full potential;
6. Need for an independent person or agency to receive approaches from persons raising serious concerns to be assessed.

 Strategic Plan Commitment(s): 6.1 and 6

ECONOMIC DEVELOPMENT DEPARTMENT

AIM:

The aim of the Economic Development Department is to:

encourage and facilitate sustainable economic growth with low levels of inflation coupled with economic diversification and the creation of job opportunities.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: Sustainable long term economic growth, at or above planned targets, delivering additional tax receipts and more diverse employment opportunities for local people whilst managing inflationary pressures within the economy.

Success criteria:

1. Controlled, sustainable real economic growth at or above 2% p.a with net inward migration within States policies over the plan period;
2. New strategies to support economic growth, including but not limited to retail strategy, tourism strategy and a Business Enterprise Development strategy fully implemented;
3. Full employment for local people with an increase in job opportunities in both existing and new sectors;
4. Higher efficiency and profitability in all sectors of the economy;
5. Less reliance on government subsidy within the rural economy;
6. Increased economic diversity across all sectors of the economy;
7. Broader skills base in the island meeting business needs;

(viii)  In conjunction with the Population Office, Regulation of Undertakings Law applied; (ix)  Inflation due to economic pressure kept within the Fiscal Strategy targets

Strategic Plan Commitment(s): 1.2, 1.3, 1.4, 1.5, 1.6, 1.7, 1.8, 2.5, 2.6, 5.1, 6.5

Objective 2:  New enterprises and companies with high value-added potential developed.

Success criteria:

1. Increased number of business start-ups with high value-added potential;
2. Increased business success defined by % of start ups still trading after three years;
3. Increased number of high value-added businesses and individuals migrating to the island.

Strategic Plan Commitment(s): 1.4, 1.5, 1.6, 1.7.

Objective 3: A co-ordinated approach to developing the skills required to support the economy. Success criteria:

(i)  EDD to play its full role in the success of the Skills Executive in particular the delivery of the demand capture function.

Strategic Plan Commitment(s): 1.2, 1.4, 1.5

Objective 4: A Financial Services Industry with an international reputation for integrity. Success criteria:

1. Growth in real terms in the financial sector;
2. Compliance with international financial standards to which Jersey is subscribed;
3. Increased profitability in the finance industry;
4. Stable or growing employment numbers in financial services.

Strategic Plan Commitment(s): 1.2, 1.4, 1.8

Objective 5: A vibrant visitor economy which adds value to Island life.

Success criteria:

1. Increased capital expenditure in the tourism sector to align the Jersey product to current market demand;
2. Increased number of visitors to the island and increased on-island visitor spend;

Strategic Plan Commitment(s): 1.2, 1.4, 1.5, 1.6, 1.7, 2.6,  

Objective 6: A diverse working countryside.

Success criteria:

1. GVA from the rural sector increased in real terms;
2. Greater diversity and enterprise in the rural economy;
3. Increased value of exports in rural sector;
4. Sustainable dairy and potato sector.

Strategic Plan Commitment(s): 1.2, 1.4, 1.5, 1.7, 2.5, 2.6, 4.1  

Objective 7: A regulatory environment in which business can prosper.

Success criteria:

1. A strong consumer voice;
2. Competition and consumer choice in all sectors;
3. Appropriate levels of consumer choice and protection;
4. Reduced processing time for the regulatory applications;
5. Fit for purpose regulatory regimes for postal services and telecommunications in Jersey.

Strategic Plan Commitment(s): 1.6, 1.7, 1.8, 2.4

Objective 8: A comprehensive external transport strategy which benefits both business and residents.

Success criteria:

1. Regular, reliable and sustainable air and sea services provided;
2. Development of new routes and extension of capacity where possible to existing routes;
3. Reduce passenger charges;
4. Reduce or maintain low freight charges;
5. Increased passenger traffic across a broader transport network;
6. Improve freight services.

Strategic Plan Commitment(s): 1.6, 6.5.

Objective 9: An Airport that meets the economic and social needs of the Island, the expectations of passengers and the expectations of airlines.

Success criteria:

1. Optimise revenue generation to address operating costs and future capital liabilities;
2. Growth in annual passenger numbers;
3. Existing routes retained and UK/European route network expanded;
4. Increased commercial revenues;
5. Improve freight services;
6. No significant pollution problems;
7. Positive and influential contribution to the development of a transport strategy.

Strategic Plan Commitment(s): 1.5, 1.6, 1.7, 3.4, 6.5  

Objective 10: A modern port that meets the economic and social needs of the Island, the expectations of passengers and the expectations of carriers.

Success criteria:

1. Optimise revenue generation to address operating costs and future capital liabilities;
2. Growth in annual passenger numbers;
3. Existing routes retained and expanded;
4. Improve freight services;
5. Effective Coastguard service;
6. Positive and influential contribution to the development of a transport strategy.

Strategic Plan Commitment(s): 1.5, 1.6, 1.7, 3.4, 6.5

Objective 11: Staff and resources managed so as to improve performance and provide value for money.

Success criteria:

1. Financial balance achieved and, total budget and spend profile consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions;
3. Management costs minimised to ensure maximum resources are directed to front line services;
4. Explicit link between budget prioritisation process and Strategic Plan Objectives demonstrated;
5. Staff developed to help them achieve their full potential.

Strategic Plan Commitment(s): 6.1 and 6.2

EDUCATION, SPORT AND CULTURE

AIM

The aim of the Department for Education Sport, and Culture is to:

strengthen our community by providing a first class education service, supporting the development of skills and promoting leisure and cultural activities that enrich our lives.

The aim is to:

• Ensure that our children enjoy the best start possible;

• Prepare our young people for the challenges of the future and encourage them to make a positive contribution to society;

• Encourage lifelong learning and active participation in sport and culture and help people develop their skills and potential throughout their lives;

• Promote social inclusion and equal opportunity.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: To improve key outcomes for children and young people

Success criteria:

1. Early years education and care strategy reviewed to take account of Scrutiny Report;
2. Revised literacy strategy developed and implemented in early years, primary and secondary schools;
3. GCSE results in English and Mathematics compare favourably with benchmark authorities;
4. ICT Curriculum Strategy objectives for 2009 delivered to schools and colleges;
5. Comprehensive Youth' strategy developed;
6. Action plan responding to recommendations in Williamson report developed and implemented;
7. Recommendations of the 2008 review of French teaching in Jersey Schools implemented.

Strategic Plan Commitments: 2.7, 2.7.1, 2.7.2, 2.7.7, 3.2.10

Objective 2: To implement plans for a Skills Executive that will steer the development of vocational education and training to meet the economic needs of the Island.

Success criteria:

1. Skills Jersey' formed and functioning effectively;
2. Vocational qualification introduced for 14-16 year olds;
3. New funding formula implemented for Highlands College;
4. New arrangements in place to support the employment of young people with learning difficulties post 19 years;
5. Sixth form collaboration evident from curriculum analysis;
6. Higher Education/University Centre for Jersey created and functioning in accordance with aspirations of the States following the 2005 Review of Higher Education (Goldstein Report);
7. Financial literacy integrated into schools' PSHE curriculum.

Strategic Plan Commitments: 1.4, 1.4.5, 1.5.1, 2.5.3, 2.6.2, 2.7, 2.7.4, 2.7.5, 2.7.6 Objective 3: To promote a culture of continuous improvement by ensuring that training and development is geared towards raising achievement and implemented through clear systems of performance management.

Success criteria:

1. Performance review and appraisal implemented for all eligible staff;
2. Quest accreditation undertaken at sports centres indicates improved performance;
3. Development plans prepared by sports governing bodies implemented and monitored;
4. Further training provided to enhance skills in First Aid, Health and Safety and Coaching;
5. Critical Skills' and Assessment for Learning' programmes progressed with schools;
6. A targeted professional development and graduate teacher training programme implemented;
7. A comprehensive leadership programme for aspiring and serving head teachers developed to support succession planning;

(viii) Sharing good practice sessions facilitated across all phases of education. Strategic Plan Commitments: 2.7, 2.7.2

Objective 4: To encourage widespread enjoyment of sport and culture and support talent and excellence in the community.

Success criteria:

1. Committee established and bid developed for hosting 2015 Island Games;
2. Support provided to enable individuals and teams to compete in national and international competitions;
3. Access for all', affordable rates maintained to activities and facilities;
4. Jersey Annual Social Survey indicates increased levels of cultural and sporting activity;
5. Cultural Strategy objectives for 2009 implemented;
6. Library Service Improvement Plan implemented.

Strategic Plan Commitments: 2.2, 2.8, 2.8.2, 2.8.3, 2.9, 3.2.9

Objective 5: To enhance arrangements for planning, governance, and accountability to ensure effective services and value for money.  

Success criteria:

1. Ten year ESC Strategic Plan developed;
2. Professional partnership arrangements in place for all schools and colleges;
3. New framework for school evaluation implemented Island wide;
4. School funding model reviewed to take account of changing demographics;
5. Training programme in place for school governors;
6. New planning and partnership agreements in place for cultural organisations.

Strategic Plan Commitments: 1.4.5, 2.6.3, 2.7.4, 2.7.6, 2.9.1, 2.9.2, 3.2.9, 6.1, 6.2 Objective 6: To review and develop initiatives and programmes designed to promote social inclusion and equal opportunity.

Success criteria:

1. More hard to reach groups engaged in sporting activities;
2. Youth Work Strategy implemented;
3. Number of partnerships with the Parishes extended;
4. Increased youth engagement in the community evident through the Youth Forum and Youth Council;
5. Participation in adult basic education increased;
6. Inclusive educational practice reviewed in primary schools, secondary schools and Highlands College;
7. Full-time places available on appropriate specialist courses (access and life skills) for 16-19 year olds with learning/social communication difficulties.

Strategic Plan Commitments: 2.7.9, 2.8.3, 3.2.9, 5.1.4, 5.1.5, 5.1.6

Objective 7: To manage staff and resources so as to improve performance and provide value for money.

Success criteria:

1. Financial balance achieved and total budget and spend profiles consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions;
3. Management costs minimised to ensure maximum resources are directed to front line services;
4. Explicit link between budget prioritisation process and Strategic Plan objectives demonstrated;
5. Staff developed to help them achieve their full potential.
6. Financial transparency and cross section prioritisation ensure that funds are used as effectively as possible to achieve Departmental objectives and meet financial challenges;
7. Review of internal control systems ensure adherence to financial directions;

(viii) Effective financial planning, monitoring and reporting evident across all service areas. Strategic Plan Commitment(s): 2.6.3, 2.7.4, 2.7.6, 2.9.1, 2.9.2, 3.2.9, 4.5, 6.1, 6.21

HEALTH AND SOCIAL SERVICES

AIM

The aim of the Health and Social Services department is to:

improve the health and social well being of the population of Jersey through the provision of high quality services.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: A redesigned health and social care system to deliver improved health and social well being for the Island community.

Success criteria:

1. New Directions' agreed by the States by March 2009 and implementation commenced;
2. The Primary Care Law adopted by the States by end of 2009;
3. In conjunction with the relevant departments, the continued implementation of the Social Policy framework:

• Advancement of the Population Data Base;

(v) Improved Occupational Health Service:

• An established action plan in place which will enable those with chronic ill- health or disability to return to work;

(v)  Secondary health care provided by HSS to HMP La Moye.

Strategic Plan Commitment(s): 2.1, 2.2 and 2.3

Objective 2: Improved health and social care outcomes by reducing the incidence of mortality, disease and injury in the population.

Success criteria:

(i) Increased life expectancy at birth in Jersey for men from 77.6 to 78.6 years and maintain that for women at above 82.8 years (2010 targets 78.6 for males and 82.5 for females);

(ii) Reduced mortality rates:

• Maintain rates from heart disease, stroke and related diseases for people under 75 to below 85 per 100,000 (2010 target);

• From cancer in people under 75 to below 113 per 100,000 (2010 target);

• From suicide and undetermined injury to below 9.8 per 100,000 (2010 target);

(iii) Further reduced adult and child smoking rates (currently recorded as 20% for adults and 21% for 14- 15 year olds) to 14 % for both adults and 14-15 year olds (2017 target);

(iv) Controlled overweight and obesity rates for adults and children:

• Reduced overweight and obesity rates for 5 year olds from 30% to below 10% (2017 target);

• Halt the rise of overweight and obese adults (currently 43% of men and 26% of women);

(v) Reduced alcohol consumption:

• Per capita from 15.4 litres (2005) to 9.1litres (2017 target);

• Continued reduction in numbers of young people (14-15 years) who drink heavily (10% in 2006);

• Access to detoxification services on an assessed clinical need promoted. 75% of clients to be seen within 2 weeks of making contact;

(vi) Improvement in Vaccination Uptake Rates for:

• Diptheria from 92% to 95%;

• MMR from 86% above 90%;

(HiB and Meningitis C vaccination uptake exceeded the 90% target for each, in 2007);

7. Human Papilloma Virus (HPV) vaccine for girls of 13 years of age introduced;

(viii) New performance criteria for Ambulance Services, based on the clinical outcomes of category

A calls, agreed and piloted.

Strategic Plan Commitment(s): 2.1, 2.2, 2.3, 2.2.2, 2.2.4, 3.2.4 and 6.2

Objective 3: Improved consumer experience of Health and Social Services. Success criteria:

1. Improved consumer experience of health and social services as measured by independently validated surveys; outcomes to match or exceed comparable UK data;
2. Minimised elective inpatient and outpatient waiting time to a maximum of 3 months.

Strategic Plan Commitment(s): 2.3 and 2.3.2

Objective 4:  Staff and resources managed so as to improve performance and provide value for money.

Success criteria:

1. Financial balance achieved and total budget and spend profile consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with UK and other jurisdictions where appropriate;
3. Management costs minimised to ensure maximum resources are directed to health and social care services by maintaining the proportion of staff in management roles at below 3%;
4. Explicit link between budget prioritisation process and Strategic Plan Objectives demonstrated;
5. Staff developed to help them achieve their full potential:

• Numbers of staff recorded as having received a formal annual appraisal to rise from 41% to 80%;

6. Implementation of the Integrated Care Record Strategy:

• Replacement of current legacy systems which will become defunct by mid 2009.

Strategic Plan Commitment(s): 6.1 and 6.2

Objective 5: The independence of adults needing health and social care thus enabling them to live a safe, full and as normal a life as possible, in their own home wherever feasible.

Success criteria:

1. Increased percentage of adult social work service users receiving a statement of their needs; from 89% to 94%;
2. Increased Adult Social Work service users receiving a formal review as a percentage of those receiving a service; from 67% to 70%;
3. Reduced number of patients aged 65 or over whose transfer from the hospital back to their home or community setting is delayed for non medical reasons. Current rate is 35 per 100,000 and target is 30 per 100, 000.

Strategic Plan Commitment(s): 2.1, 2.1.6 and 3.7

Objective 6: The social development of children within the most appropriate environment to meet their needs.

Success criteria:

1. Stability of placements for children under the care of the department;
2. Increased proportion of children in care in family placements; target for 2009 is 74%;
3. Minimised number of children registered during the year on the Child Protection Register who had been previously registered;
4. Minimised number of children de-registered who had been on the Register for longer than two years due to changed risk profile.

(These objectives possibly subject to independent recommendation by the Andrew Williamson enquiry)

Strategic Plan Commitment(s): 3.7

HOME AFFAIRS

AIM

The aim of the Home Affairs Department is to:

work towards a safe, just and equitable society.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: Public confidence in the services provided for their safety, protection and security. Success criteria:

1. High levels of public confidence in the services provided by the Home Affairs departments maintained;
2. High levels of satisfaction with the quality of service provided to victims of crime maintained;
3. Safer St Helier project delivered in partnership with the community, voluntary organisations and the private sector;

Strategic Plan Commitment(s): 3.2

Objective 2: Effective policing of offences that pose the greatest threat to community safety.

Success criteria:

1. Low levels of crime maintained in Jersey relative to comparable locations;
2. High level of detection rates and the proportion resulting in offenders being presented to the criminal justice system maintained and further improved;
3. Significant disruption to the supply of illegal drugs in the Island maintained;
4. High levels of safety and public perception of safety in their neighbourhoods maintained;
5. Public safety and perception of safety in St Helier at night improved;
6. An increase in the percentage of people who say that Police do a good job in the areas of drugs, violent crime and burglary;
7. Low levels of road traffic crashes resulting in serious or fatal injury maintained or further reduced.

Strategic Plan Commitment(s): 3.2 and 3.3

Objective 3:  The public protected by providing interventions and services that reduce reoffending. Success criteria:

1. Custodial facilities for prisoners improved;
2. A high success rate in the rehabilitation of offenders achieved through Sentence

Planning, Prison education and other programmes;

3. In conjunction with the Probation Service, a co-ordinated approach to dealing with offenders.

Strategic Plan Commitment(s): 3.3

Objective 4: Life, property and the environment protected from risks from fire and other emergencies. Success criteria:

1. Deaths, injuries and economic losses due to fires and other emergency incidents reduced;
2. An appropriate range of services to provide a resilient and effective response to major incidents.

Strategic Plan Commitment(s): 3.5

Objective 5: Strong frontier protection against threats to the security, social and economic integrity and environment of the Island that balances the need to maintain Jersey as a competitive location in which to do business.

Success criteria:

1. Effective immigration controls maintained to nationally recognised standards;
2. Security services at Jersey ports maintained to nationally recognised standards;
3. Effective enforcement to intercept and deter the illegal importation of prohibited or restricted goods maintained;

Strategic Plan Commitment(s): 1.8 and 3.4

Objective 6: A financial crime investigation service that is recognised for its effective cooperation with law enforcement agencies in the United Kingdom and elsewhere in combating serious and organised crime, money laundering and terrorism.

Success criteria:

(i)  A continued reputation for high quality financial crime/fraud investigation that achieves compliance with the international financial integrity standards to which the government of Jersey has subscribed;

Strategic Plan Commitment(s): 1.8 and 3.4

Objective 7: Jersey's defence contribution to the UK maintained.

Success criteria:

(i)  A Royal Engineer Squadron prepared to deliver individual reinforcements or a formed group to support UK Operations.

Strategic Plan Commitment(s): 5.2

Objective 8: Staff and resources managed so as to improve performance and provide value for money. Success criteria:

1. Financial balance achieved and total budget and spend profile consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions where appropriate;
3. Management costs minimised to ensure maximum resources are directed to front line services;
4. Explicit link between budget prioritisation process and Strategic Plan Objectives demonstrated;
5. Staff developed to help them achieve their full potential.

Strategic Plan Commitment(s): 6.1 and 6.2

HOUSING

AIM:

The aim of the Housing Department is to:

ensure that long-term, sustainable and affordable housing is provided to meet the needs of all residents

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: Management of the Department's Social Housing Property Plan 2007 – 2016' Success Criteria:

1. Plans on track for all States owned social rented properties to meet the UK Government's Decent Homes Standard by 2016;
2. The Department is able to retain sufficient amounts of its income to ensure that it is self sufficient and able to maintain, and refurbish the States owned social rented stock;
3. The housing portfolio (property types and numbers) realigned to meet the changing needs of the community, particularly in relation to life-long homes;
4. The remaining non-core prime location properties outlined in the Property Plan are sold;
5. States Tenants encouraged to become home owners with the assistance of the approved deferred payment scheme;

Strategic Plan Commitment(s):  3.8.1, 3.8.3, 3.8.8

Objective 2: Supply and demand for property assessed so that there is an adequate supply of homes

Success criteria:

1. The supply and demand for social rented homes monitored and reported regularly to the Planning and Environment Minister;
2. Contribution to an increase in the level of home ownership;
3. The Jersey Homebuy Gateway and qualifying parameters established to ensure that need is met;
4. In conjunction with the relevant Departments, the continued implementation of the Social Policy framework.

Strategic Plan Commitment(s):  3.8.1, 3.8.2, 3.8.5, 3.8.8

Objective 3:  A Fundamental Review of Social Housing

Success criteria:

1. Recommendations brought forward for debate in relation to changes to rent levels and structures, including a mechanism for regular rent reviews;
2. Recommendations brought forward for debate in relation to changes to the management and operation of the States owned social rental stock;
3. Recommendations brought forward for debate in relation to changes to facilitate the Implementation of a regulatory framework.

Strategic Plan Commitment(s):  3.8.1, 3.8.2, 3.8.4, 3.8.5 and 3.8.8

Objective 4: Excellent Relationship between the Department and its Tenants

Success criteria:

1. Initiatives introduced to improve and develop communication with tenants so that tenants are increasingly involved with, and consulted about decisions which affect them, in particular the outcome of the Review of Social Housing;
2. The Tenants Forum further developed to ensure an increasing role in the development of Social Housing Policy;
3. The percentage of rent arrears reduced in collaboration with the Tenants Forum;
4. The maintenance and further enhancement of service levels through the development of links with external partners.

Strategic Plan Commitment(s):  3.7, 3.8.4, 3.8.5

Objective 5: Staff and resources managed so as to improve performance and provide value for money.

Success criteria:

1. Financial balance achieved and total budget and spend profile consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions where appropriate;
3. Drive efficiency through the setting of individual and team performance targets which will be reviewed regularly by the continuation of robust performance management processes for all;
4. Explicit link between budget prioritisation process and Strategic Plan Objectives demonstrated;
5. Audit existing processes to ensure that they are efficient, display value for money and deliver tangible benefit;
6. The full potential of Individuals and Teams achieved through continuous development in line with organisational objectives

Strategic Plan Commitment(s): 3.6.2

PLANNING AND ENVIRONMENT DEPARTMENT

AIM

The aim of the Planning and Environment Department is to;

keep Jersey special by protecting the environment whilst supporting a thriving community and sustainable economy.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: Maintain and enhance a strong, successful and environmentally sustainable economy Success criteria:

1. Use ECO-ACTIVE BUSINESS scheme to minimise environmental impact of local businesses;
2. Promote a sustainable Island economy through:

1. identification and provision of appropriate land  
2. supporting diverse, modern and adaptable farming, fishing and fish-farming industries  

Strategic Plan Commitment(s):  1.1.1 and 1.5.6

3. Use Environmental taxes to fund improvements and influence consumers behaviour;
4. Annual State of the Environment report to promote a green reputation of which Islanders are proud.

Strategic Plan Commitment(s):  1.1.3

Objective 2: Create the environment in which everyone in Jersey has the opportunity to enjoy a good quality of life

 Success criteria:

1. Develop policy, guidance and legal provisions that:
   1. Encourage and require efficient use of resources (land, marine and energy)
   2. Deliver affordable and environmentally sustainable homes that meet needs and aspirations of Islanders;
2. Environmental Taxes scheme to fund:

1. Sustainable travel and transport facilities
2. Energy efficiency measures
3. Improved recycling
4. Awareness and education.

Strategic Plan Commitment(s):  1.1.1 and 2.10.2

Objective 3: Promote a safe, just and equitable society

Success criteria:

1. Use planning policy and planning gain to secure improvements in the public realm;
2. Ensure building standards secure contribute to the health and safety of building users, including disabled people.

Strategic Plan Commitment(s):  3.8.6 and 3.8.7

3. Ensure high standards of animal health and welfare and protect society from the impact of animal and fish diseases;
4. Work to identify and provide appropriate land for homes.

Strategic Plan Commitment(s):  3.8.2

Objective 4: Protect, maintain and enhance the natural and built environment

Success criteria:

1. Develop and maintain a policy framework, including the Island Plan 2010 and the new Planning and Building Law, that protects the Island's environment (marine, countryside, coastline and heritage) whilst meeting social need and supporting a thriving economy;

Strategic Plan Commitment(s):  4.1.2, 4.7.1. 4.5.2, 4.7.4 and 4.7.6

2. Implement St Helier Development and Regeneration Strategy and support delivery of a high quality, viable and vibrant urban environment;

Strategic Plan Commitment(s):  4.2.1 and 4.2.2

3. Deliver an exemplary Waterfront that supports regeneration of St Helier ;

Strategic Plan Commitment(s):  4.2.3, 4.2.5 and 4.2.6

4. Review framework for protecting the Island's historic built environment;

Strategic Plan Commitment(s):  4.5.2, 4.5.5 and 4.7.6

5. Energy Policy to deliver secure, affordable and sustainable energy;

Strategic Plan Commitment(s): 1.1.1, 4.3.1 and 4.3.2

6. Seek to reduce unsustainable use of resources following introduction of Environmental taxes;

Strategic Plan Commitment(s):  1.1.1, 4.4.3 and 4.6.3

7. Deliver a vibrant, working countryside through implementation of the Rural Economy Strategy;

Strategic Plan Commitment(s): 4.1.1 and 4.5.1

(viii) Coastal Zone Management Strategy implemented to ensure sustainable approach to

management of marine and coastal environment;

Strategic Plan Commitment(s): 4.7.5

9. Bring forward a Climate Change Adaptation and Mitigation Strategy;
10. Implement Waste Management Law and ensure Jersey complies with wider environmental obligations;

Strategic Plan Commitment(s):  4.4.1

11. Implement Water Resources Law to better protect and manage this vital resource.

Strategic Plan Commitment(s): 1.1.1 and 4.4.2

Objective 5: Create a strong, recognised identity for Jersey and promote a real sense of belonging Success criteria:

1. Maintain and enhance Jersey's unique character through protection of natural and built environment including:
   1. protection of Jersey's cultural assets
   2. encouragement of the delivery of public art
   3. promotion of the highest architectural standards of architecture;
2. Ensuring compliance under existing International Agreements by 2010
3. Use ECO-ACTIVE as a mechanism for Islanders to become custodians of the environment and create a sense of citizenship

Strategic Plan Commitment(s): 5.1, 5.2

Objective 6: Manage staff and resources efficiently to ensure the delivery of improved performance and provide value for money.

Success criteria:

1. Implement business improvement plan to improve planning application process;
2. Improve accuracy of geo-spatial information through better interface of IT and Jersey Digital Map and support introduction of web-enabled planning service by end 2011;
3. Provide accurate, timely, reliable and, where appropriate, specialised weather services to meet the needs of the Channel Islands communities;
4. Financial balance achieved and total budget and spend profile consistent with forecast;
5. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions where appropriate;
6. Management costs minimised to ensure maximum resources are directed to front line services;
7. Explicit link between budget prioritisation process and Strategic Plan objectives demonstrated; (viii)  Staff developed to help them achieve their full potential;

(ix)  Drive up improved environmental performance of States Departments through development of Environment Policy.

Strategic Plan Commitment(s): 6.1 and 6.2

SOCIAL SECURITY

AIM

The aim of the Social Security Department is to;

help people to achieve and maintain financial independence and provide social benefits to protect those unable to support themselves

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: Support people to achieve and maintain an acceptable standard of living.

Success criteria:

1. Maintain and administer the Income Support scheme;
2. Fully implement the residential care elements of Income Support;
3. Monitor the implementation of Income Support with a view to undertaking a full review in 2010;
4. Maintain and administer existing contributory benefits;
5. Undertake  consultation  and  subsequently  develop  proposals  for  possible  changes  to  the Social Insurance Scheme, for example:

1. pension and other retirement income provision;
2. a long-term care scheme;
3. the system of funding for social insurance;

6. Contribute  to  the  implementation  of  the  Health  &  Social  Services  Healthcare  Strategy including an affordable and sustainable approach to primary healthcare;
7. Implement approved actions designed to constrain the cost of supplementation; (viii)  Implement actions arising from the review of Incapacity Benefits.

Strategic Plan Commitment(s): 2.1.2, 2.2.1, 2.2.3, 2.2.5, 3.6.1, 3.6.2, 3.6.3

Objective 2: Provide opportunities for higher skills and better employment.

Success criteria:

1. Ensure that the Skills Executive provides specialist support to help adults and young people with special employment needs that might have difficulty entering the workplace;
2. Ensure that the Skills Executive provides facilities and careers advice for adults and young people wishing to improve their job skills and employment opportunities;
3. Maintain  and  strengthen  systems  of  support,  to  facilitate  individuals  in  returning  to,  or remaining in, work as a major component of the incapacity benefit and income support policies.

Strategic Plan Commitment(s):  1.4, 3.6.3

Objective 3: Help employers and employees to work well together for their mutual benefit and the economy of the island

Success criteria:

1. Promote good employment practice and relations;
2. Continue with the introduction of Phase 2 of Employment Reform, including redundancy rights and the protection of employees involved in business mergers and acquisitions (TUPE);
3. Prepare legislation for the First Stage of maternity and parental leave, flexible working and family friendly legislation;
4. Gain approval for and implement the proposals for the replacement of Health & Safety legislation affecting the construction industry.

Strategic Plan Commitment(s): 1.4, 3.1.1, 3.1.3

Objective 4: Deliver benefits and high quality services, now and in the future.

Success criteria:

1. Take active steps to co-ordinate efforts to deter and detect fraud and abuse within the benefits system;
2. Maintain an efficient and cost effective benefit administration;
3. Further develop a customer based focus within the organisation;
4. Manage the Social Security Fund and the Health Insurance Fund to a high standard.

Strategic Plan Commitment(s): 5.1

Objective 5: Staff and resources managed so as to improve performance and provide value for money.

Success criteria:

1. Financial balance achieved and total budget and spend profile consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions where appropriate;
3. Management costs minimised to ensure maximum resources are directed to front line services;
4. Explicit link between budget prioritisation process and Strategic Plan objectives demonstrated;
5. Staff developed to help them achieve their full potential.

Strategic Plan Commitment(s): 6.1 and 6.2

TRANSPORT AND TECHNICAL SERVICES

AIM

The aim of the Transport and Technical Services Department is to;

• ensure minimum impact of waste on the environment

• develop on-Island Travel Networks which meet the needs of the community

• provide attractive and well maintained public amenities and infrastructure

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA Objective 1: Solid waste minimised through progressive recycling

Success criteria:

1. Improved recycling system to increase recycling and composting to at least 32% by the end of 2009;
2. New In-Vessel Composting facility planning process completed by Q2, 2009;
3. The most harmful elements of the waste stream segregated for treatment;
4. Construction of new Energy from Waste plant maintained according to programme, subject to the approval of the project by the States;
5. Long term sustainable funding route for solid waste identified. Strategic Plan Commitment(s): 4.6, 4.6.1 and 4.8.4

Objective 2: Liquid waste treated and disposed of in a manner that minimises the impact on the environment

Success criteria:

1. Approval of Liquid Waste Strategy gained and the implementation plan prepared
2. Identify long term sustainable funding route for liquid waste to ensure proper support for the provision of the service;
3. Plan for the implementation of Phase 2 of Odour Control;
4. Reduce the amount of waste treatment required by undertaking as many surface water separation projects as budgets will allow;
5. Effluent quality maintained;
6. Energy Audit undertaken for Liquid Waste system to optimise energy usage. States Strategic Commitment (s):  4.4, 4.6.2, 4.8, 4.8.1 and 4.8.4

Objective 3: The highway network maintained to maximise the lifespan of highways and associated infrastructure

Success criteria:

1. Long term sustainable funding route identified in order to maintain minimum standards;
2. Best use is made of the funds available through the allocation of budget prioritised against condition assessment;
3. Disruption to the travelling public affected by road works minimised through liaison with utility companies and careful management of traffic arrangements.

States Strategic Commitment (s): 2.10, 2.10.3, 4, 4.8, 4.8.2 and 4.8.4.

Objective 4: An integrated travel and transport system

Success criteria:

1. Future redevelopment of multi-storey car parks commenced;
2. Pilot scheme of new charging mechanism undertaken;
3. Implementation of ITTP Phase 1 subject to funding;
4. Provision of traffic advice for future strategic developments.

States Strategic Commitment (s): 2.10, 2.10.1, 2.10.4, 4.2.3 and 4.9.2  

Objective 5: The integrity of the Island's sea defences is maintained Success criteria:

1. Sea defences not breached;
2. Scheduled implementation of the Sea Defence Strategy.

States Strategic Commitment (s): 4.8 and 4.8.3

Objective 6: Well maintained public places and amenities Success criteria:

1. Positive public feedback on cleanliness of municipal areas;
2. Customer satisfaction with facilities.

States Strategic Commitment (s): 4.2, 4.5.5, 4.9 and 4.9.1

Objective 7: Road users are safe and comply with legislation Success criteria:

1. Numbers of vehicles in road checks being issued with defect notices;
2. Number of road traffic collisions involving defective vehicles.

States Strategic Commitment (s): 2.10

Objective 8: The States and industry supported through the provision of specialist services for the benefit of the Island

Success criteria:

1. Animal carcass incinerator that meets regulatory standards;
2. Abattoir that meets regulatory standards.

States Strategic Commitment (s): 1.5, 6.2

Objective 9: Staff and resources managed so as to improve performance and provide value for money.

Success criteria:

1. Financial balance achieved and total budget and spend profile consistent with forecast;
2. Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions where appropriate;
3. Management costs minimised to ensure maximum resources are directed to front line services;
4. Explicit link between budget prioritisation process and Strategic Plan objectives demonstrated;
5. Staff developed to help them achieve their full potential. Strategic Plan Commitment(s): 6.1 and 6.2

TREASURY AND RESOURCES

AIM:

The aim of the Treasury and Resources Department is to:

Support the delivery of the States strategic objectives by maintaining sound and sustainable public finances and effectively managing the financial and property assets of the States.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Objective 1: Implementation of the agreed Fiscal Strategy which meets the challenges to States revenues in the run up to the move to a 0/10% corporate tax structure.

Success criteria:

1. Balanced budgets over the planning cycle;
2. Plans on track to develop and implement the programme for the introduction of the 0/10% corporate tax regime and all related provisions by 2009;
3. Operate GST and undertake post implementation review;
4. The impact of the Fiscal Strategy and other States strategies on inflation monitored and the anti-inflation strategy reviewed as appropriate;
5. Proposals brought forward for environmental taxes;
6. Ensure  compliance  with  Jersey's  existing  and  new  international  tax  agreements through  the  delivery  of  specific  exchange  of  information  and  retention  tax  with individual OECD member states and EU countries;
7. Assess and Collect £510 million of income tax and goods and services tax in 2009;

Strategic plan commitment(s): 1.3, 1.3.1, 1.3.2, 1.3.3, 1.3.4, 1.7.5, 6.1, 6.1.1 and 6.1.4

Objective 2: Manage and co-ordinate the States' finances.

Success criteria:

1. Clear  financial  targets  developed  by  which  performance  can  be  monitored  and developed;
2. Improved financial reporting systems and performance measures;
3. Promote the development of risk management strategies across the States;
4. Continue to develop the financial control and assurance framework across the States;
5. Revenue consequences of all capital projects and the legislation programme fully quantified prior to approval by the States;
6. Establish a framework for the assessment of funding of new projects;
7. Funding of agreed policies developed with the relevant departments; (viii)  Maximised return on investments within agreed investment strategies;

Strategic plan commitment(s): 6.1.5, 6.1.8, and 6.1.9.

Objective 3: A transformed States finance function and professional support.

Success criteria:

1. JD  Edwards  financial  information  system  developed  further  to  facilitate  the streamlining of financial processing;
2. In  conjunction  with  the  Chief  Minister's  Department,  continue  to  identify  and implement all possibilities to deliver planned efficiency savings from across the public sector by the end of 2009;
3. Promote the professional development of all finance staff;

4. Provide a range of processing and back-office support services in an efficient and cost effective manner;

Strategic plan commitment(s): 6.2, 6.1.9, 6.2.2 and 6.2.3.

Objective 4: High quality, timely and robust professional advice and direction provided by the Treasury and Resources Department to individual Ministers and the Council of Ministers which identifies the financial implications for major strategic proposals.

Success criteria:

1. Processes for achieving spending targets developed and agreed;
2. An action plan implemented to ensure that the States accounts are GAAP (Generally Accepted Accounting Principles) compliant;
3. In conjunction with the relevant departments, the continued implementation of the social policy framework;

Strategic plan commitment(s): 1.2, 6.1 and 6.2.6.

Objective 5: A single corporate procurement function across the States.

Success criteria:

1. A procurement Strategy to deliver £1.9million in savings across the States by the end of 2009;
2. Educate to improve procurement skills at departmental and operational level;
3. Support the implementation of e sourcing system and supplier portal across all departments;
4. Implement effective strategies and polices to support a corporate approach to the procurement of goods, services and works;
5. Implement planning and performance management criteria in respect of the States' procurement activities;
6. Promulgate best practice with regard to supplier management and development of local suppliers.

Strategic plan commitment(s): 6.2.9.

The range of activities within the Treasury and Resources Department's role of financial advisor' will vary over the life of this strategy but there are a number of ongoing and long-running issues in which the Treasury and Resources Department will have a key role.

Jersey Property Holdings. AIM:

The aim of Jersey Property Holdings is to:

Provide well maintained, safe, legislatively compliant and financially sustainable property to meet all States Departments' administrative and operational accommodation requirements in order to support the continued delivery of high standards of service to the public.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: A disposal programme which reduces the States' Property Portfolio to a size which is affordable and efficient, and releases capital proceeds for investment in addition to sites suitable for Housing development.

Success criteria:

1. Improved asset utilization and reduced property operating costs;
2. The concentration of States' administration into fewer geographic locations and the development of new working environments which support more collaborative and efficient ways of working;

3. The release of surplus or high alternative use value properties to provide funds to support capital investment, with a strong focus on progressing sites which may be developed for social rented or private sector housing;

Objective 2: Addressing under funding of maintenance and capital works

Success criteria:

1. A significant reduction in "backlog" maintenance which has resulted from structural under-funding of property maintenance over a number of years, through the introduction of remedial works in a phased and prioritised programme plan;
2. The instigation of a series of capital projects to replace assets which have deteriorated beyond reasonable repair, funded from proceeds generated by the disposal of property over and above that required to meet agreed capital proceeds targets;
3. Capital projects commenced and completed on time and within budget;

Objective 3: Development and maintenance of a five year rolling Portfolio Plan

Success criteria:

1. The consolidation of all property survey information, asset valuations and legal commitments in a single database;
2. The identification of all future investment activity in a single comprehensive Integrated Property System;

Objective 4: Continued development of the Jersey Property Holdings organisation Success criteria:

1. The establishment of Jersey Property Holdings as a States' Trading Operation;
2. The introduction of a "charging mechanism" to recover the full cost of property from occupying Departments, including a notional rent for freehold and all leasehold premises;
3. The installation of a single comprehensive Integrated Property System to replace the existing three separate systems;
4. The introduction of new financial directions, policies and procedures to clarify all internal and external operating procedures for property transactions and utilisation;
5. The completion of Health and Safety and supplier management training for all appropriate personnel;
6. The development of service level agreements for all property users in conjunction with lease agreements, including customer satisfaction indices.

Strategic plan commitment(s): 6.2, 4.2.4 and 6.2.5.

JERSEY AIRPORT

AIM:

The aim of Jersey Airport is to;

provide an Airport that strives to meet

• the economic and social needs of the Island;

• the expectations of passengers by providing facilities that are equal to, or better than those found in comparable UK and European regional airports;

• the expectations of airlines in handling their aircraft and passengers in a safe and secure environment.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: Grow passenger numbers by increasing the network of destinations between Jersey, the UK and Europe while sustaining existing air services.

Success criteria:

1. Sustain existing services and destinations;
2. Achieve minimum passenger growth of 1 percent per annum;
3. Grow number of destinations by at least one new destination per year;
4. Three new European destinations by end 2011.

Strategic Plan Commitments: 1.2.1, 1.5.3, 1.6.2 and 6.5

Objective 2: Reduce the reliance on aeronautical revenue by increasing yield from non- aeronautical sources and increasing commercial development activity.

Success criteria:

(i)  Increase percentage of Airport revenue contributions from non-aeronautical sources by 30 percent by end 2011

Strategic Plan Commitments: 1.5.3, 1.6.3 and 6.5

Objective 3: In partnership with France and the United Kingdom, continue to provide air traffic services within the Channel islands Control Zone (CICZ) on a commercially sustainable basis.

Success criteria:

1. Achieve Single European Sky (SES) certification;
2. Successfully negotiate financial protocol 2009-2011;
3. Achieve efficiency savings by May 2010;
4. Deliver new air traffic centre by June 2010;
5. Successfully negotiate, before end of 2011, new MoU between France and UK to enable continuation of CICZ operations.

Strategic Plan Commitments: 1.6.3, 6.2 and 6.5

Objective 4: Improve operational and commercial efficiency through restructuring the organisation with no detrimental impacts on staff terms and conditions, and no compulsory redundancies.

Success criteria:

(i)  Achieve efficiency improvements (Phase 2) by June 2010

Strategic Plan Commitments: 1.6.3, 6.2, 6.5

Objective 5: Invest in the personal and professional development of staff. Success criteria:

1. Implement PRA system across organisation (to the extent possible);
2. Departmental training programs implemented.

Strategic Plan Commitments:-

Objective 6: Ensure Jersey Airport is prominent in states of Jersey strategies and that the airport remains a strategic asset to the island.

Success criteria:

1. Jersey Airport featured in EDD and broader States strategies;
2. Demonstrated joined-up responses to airline market development opportunities (in line with Strategy 1 above);
3. Two briefings conducted annually for selected States members and relevant chief officers.

Strategic Plan Commitments: 1.5.3, 1.6.3, 6.2 and 6.5

Objective 7: Implement best practice policies that meet safety, security, environment and corporate governance requirements.

Success criteria:

1. All relevant departments compliant with safety and security measures of the day;
2. No critical anomalies reported as a result of independent audits;
3. Compliance with States corporate governance and accounting standards including Risk Management;
4. Safety Management Systems (SMS) and Quality Management Systems (QMS) policies and procedures implemented and proven.

Strategic Plan Commitments: 3.4, 3.5, 4.4 and 4.8

JERSEY HARBOURS

AIM

The aim of Jersey Harbours is to;

provide a modern port and coastguard services with guaranteed long term viability SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA

Objective 1: To keep the port open and safe

Success criteria:

1. Compliance  with  the  Port  Marine  Safety  Code,  and  security  and  other  maritime legislation;
2. Reviewed organisational risk register that also demonstrates effective contingency and crisis management;
3. To maintain, so far as is viable, an open port, berths and associated facilities;
4. Quality  operational  management  that  secures  the  asset  base  to  ensure  long  term viability, and an open and safe port;
5. Repositioning and public awareness of the role of the Coastguard.

Strategic Plan Commitments: 1.6; 6.5

Objective 2: To provide competitive commercial and community services which best respond to the different needs of all customers

Success criteria:

1. To  increase  the  number  of  boats,  berths  and  associated  ancillary  businesses  in support of the marine leisure industry;
2. Customer user groups and relationship management for each business segment to ensure good customer engagement, adding value to all services;
3. Reviewed tariff structure in line with the commercial objectives and economic criteria, with appropriate and balanced tariffs;
4. Alignment with the UK Coastguard through audits and benchmarking;
5. Develop and train staff skills to UK Coastguard and VTS standards.

Strategic Plan Commitments: 1.6; 6.5

Objective 3: To maintain robust financial management to achieve self sufficiency, and positively contributing to Jersey's economic development

Success criteria:

1. Development and optimisation of existing and new business streams, encouraging new enterprise with innovation and entrepreneurship;
2. Clear financial management plans indicating long term view on sustainability and funding;
3. Funding review of Coastguard and other community functions with agreed Policies;
4. Established effective governance, leadership structure and accountability with EDD and Treasury ensuring commercial separation, economic partnership and operating effectiveness.

Strategic Plan Commitments: 1.6; 6.5

STATES ASSEMBLY AND ITS SERVICES

AIM

The States Assembly budget is held under the responsibility of the Privileges and Procedures Committee and its aim is to enable the States Assembly to operate effectively as Jersey's legislature, to facilitate the work of all panels and committees of the Assembly and to fund members' remuneration, interparliamentary exchanges and the support services provided by the States Greffe.

SUMMARY OF KEY OBJECTIVES AND KEY SUCCESS CRITERIA (for information only)

Objective 1: States Assembly able to operate effectively

Success criteria:

1. Assembly able to meet on a regular basis according to agreed schedule of States meetings;
2. All official publications published and provided to members in accordance with statutory timescales;
3. States Chamber and other facilities for States members provided and maintained to agreed standards;
4. States members' remuneration paid in accordance with the recommendations of the States Members Remuneration Review Body;
5. Active and effective participation by States members in inter-parliamentary bodies (CPA, APF, B-IIPB, Commission Amicale)

Objective 2: Effective and efficient scrutiny function

Success criteria:

1. Scrutiny panels and the PAC undertake reviews that hold the Executive to account and that influence policy in a positive way;
2. Chairmen's Committee provides appropriate co-ordination of the scrutiny function;
3. Public engagement with the scrutiny function is enhanced and public understanding of the work of the panels is increased;
4. Effective support service provided to panels by the Scrutiny Office.

Objective 3: Government and electoral reform progressed

Success criteria:

1. States of Jersey Law 2005 and Standing Orders of the States of Jersey kept under review and appropriate amendments brought forward if necessary;
2. Outstanding  recommendations  of  the  Machinery  of  Government  review  brought forward for approval as appropriate and operation of ministerial/scrutiny system kept under review;
3. Public  Elections  (Jersey)  Law  2002  kept  under  review  and  amendments  brought forward if necessary;

Objective 4:  Public kept well-informed about the work of the Assembly

Success criteria:

1. Public information services provided by the States Greffe enhanced;
2. Active co-operation with the citizenship programme being brought forward by the Education, Sport and Culture Department;
3. States Assembly website upgraded.

Objective 5: Effective and efficient administrative support provided to the Assembly, its members, its committees and panels and a number of other bodies by the States Greffe

Success criteria:

1. Timely and accurate advice provided to all members as required;
2. Official Report (Hansard') available according to agreed timescales;
3. Efficient service provided to Council of Ministers and other bodies served by Clerks Secretariat;
4. All official records maintained in an accurate and secure manner;
5. Complaints submitted to States of Jersey Complaints Panel processed according to statutory requirements;

PART TWO

FINANCE AND RESOURCES

2. FINANCIAL FORECAST 2008 - 2013

1. Overview

The  financial  forecast  at  Table  2.1  has  been  prepared  from  the  latest  estimates  of  States revenues  and  the  proposed  levels  of  States  expenditure.  States  expenditure  reflects  the proposals from the Council of Ministers as a result of the recent business planning process and is in line with the proposals agreed by the States in September 2007. The forecasts of States revenues reflect the fiscal measures that have been approved in principle and that will be implemented in 2008.

Table 2.1  Revised Financial Forecast (July 2008)

Probable <---------------------------- Forecasts -------------------------------->

2008 2009 2010 2011 2012 2013

£m £m £m £m £m £m

States Income

460 Income Tax 475 490 510 530 550

- 0/10% Corporate Tax Structure (9) (77) (82) (87) (96)

30 Goods and Services Tax 45 46 47 48 50 50 Impôts Duty 50 49 49 49 49

30 Stamp Duty 31 32 33 34 34

- Tax/Stamp Duty on Share Transfer 1 1 1 1 1

44 Other Income 33 27 25 24 23 10 Island Rate 10 11 11 11 12 624 States Income 636 579 594 610 623

States Expenditure

524 Net Revenue Expenditure 531 549 567 584 602 143 Net Capital Expenditure Allocation 38 40 37 35 16 667 Total States Net Expenditure 569 589 604 619 618

(43) Forecast Surplus/(Deficit) for the year 67 (10) (10) (9) 5

- Transfer to Strategic Reserve - - - - -

(38) Transfer to Stabilisation Fund - - - - -

13 Estimated Consolidated Fund balance 80 70 60 51 56

Notes:

There are a number of assumptions behind the Financial Forecast in Table 2.1. These are:

Income Tax

• Income tax forecasts are unchanged since those produced in March from the 2007 outturn and the next update will be produced for the 2009 Budget in October.

• 2008 tax revenues are based on specific assumptions for the increase in taxable profits, earned and unearned income. These reflect the increases seen in the 2007 revenues. For the forecast years a cautious approach has been taken until specific figures relating to the impact of the credit crunch' are available.

• Proposals for new Company Fees as part of the 0/10% proposals will be brought forward to replace

Exempt Company fees. The base forecasts have not been amended at this stage but some account of a reduction in revenue is included in the 0/10% deficit calculation, until the new proposals are confirmed.

• The impact of the change to a 0/10% corporate structure has been reassessed in light of the increased tax revenues within the range £89 million to £104 million between 2008 and 2013, and the mid-point of this range at £96 million is included in the forecast for 2013.

GST

• A broad based 3% Goods and Services Tax has been introduced from May 2008 and the original estimate of £45 million net revenue in a full year is included at this stage.

 Impôts Duties

• The forecasts reflect the predicted trends in consumption, which include a drop off for some goods, but also include an assumption that there would be annual increases in duty at a level broadly equivalent to the Island RPI(x), reflecting the currently agreed Alcohol and Tobacco Strategies. The current assumptions for duty increases for 2008 are between 3% and 4%.

• The forecasts have been reduced by £4 million to reflect the States decision to abolish VRD from May 2008 when GST began.

Stamp Duty

• The forecasts assume that house prices in particular will continue to increase at least in line with RPI and that house sales will remain broadly at current volumes.

• The introduction of a tax or duty on share transfer property transactions was proposed in principle in the 2008 Budget and after the Scrutiny review has now been approved. However, as this will need to go through Privy Council, it is unlikely to yield any revenue in 2008. The best estimate is that it will raise up to £1 million in a full year.

Other Income

• Other income includes the European Union Savings Directive Retention Tax of over £8 million in 2008. However, this income is expected to reduce over time as the provisions of the tax change and the forecast reflects a reducing profile.

• With the approval of the funding from the Consolidated Fund of £100 million for the Energy from Waste (EfW) Plant in 2008 there will be a reduction in investment income from cash balances in future years.

• There are a large number of other components that have the potential to increase and decrease so a cautious appraisal has been made.

Island Rate

• The Island Rate will increase annually according to the Island RPI as prescribed in the Rates Law. Revenue Expenditure

• The increases provided within the revenue expenditure forecasts are as a result of the Council of Minister's proposals. These are described in detail in Section 3 of this report, and are net of the repayment of capital debt.

• The final year of the programme of £20 million efficiency savings is included within the revenue and capital expenditure allocations as well as new targets for savings in future years from the CAG spending review proposals

• The 2008 expenditure has been revised from the 2008 Business Plan to reflect the agreed carry forwards and the additional expenditure proposed by the Council and approved by the States for Historic Child Abuse Enquiry (HCAE) and Pandemic Flu.

Net Capital Expenditure Allocation

• The forecasts are in line with the programme described in detail in Section 5, after allowing for the "capital receipts (efficiency savings)" to be achieved by Property Holdings and in accordance with the funding of the Housing Social Works Programme (P6/2007). The profile of capital expenditure for 2010- 2013 is only indicative of the total £128 million programme at this stage ahead of the proposed move to Resource Budgeting for 2010.

Forecast Surplus/(Deficit)

• The forecasts show no significant change from that produced for the 2008 Budget last October, with the exception of the funding of the EfW Plant and its effect on the 2008 financial position. As with previous forecasts they rely on a number of significant assumptions described above as well as the States adhering to the expenditure targets and implementing the remaining fiscal strategy measures on timescale.

Strategic Reserve/Stabilisation Fund

• No further transfers are included in the forecast but the Council will be informed by the first report of the Fiscal Policy Panel later this year and proposals will be reviewed in preparation for the 2009 Budget. The forecasts do not at this stage include any proposals for Health and Social Services New Directions Strategy or new environmental taxes and expenditure initiatives as these have yet to be set before the States.

2. Revised Forecasts for Annual Business Plan.

The forecasts reflect the latest expenditure proposals of the Council of Ministers, which are described in detail in this report, but the most significant change is in respect of the agreed proposals for the funding of the new EfW Plant. The effect of the agreed funding proposals is to fund £100 million of capital expenditure approvals in 2008 and remove the future funding stream from the capital programme in future years. This causes a funding deficit in 2008, but this is affordable within the balance on the Consolidated Fund.

The latest forecasts of States revenues are predominantly based on the 2007 actuals and the trends of revenues in the early part of 2008. The 2007 actuals confirm the improvements in States revenues which were forecast in the 2008 Budget in October.

The increases over the last year have occurred in most sources of States revenues and analysis has been carried out, and then checked with early tends in 2008, to assess whether the improvements in revenues are likely to recur. The analysis showed that in most cases the revenues in 2007 should provide a robust base for future forecasts and confirm the trends identified in the 2008 Budget report which are discussed further below.

The income tax forecasts include a small reduction in the forecasts for companies but this is partly offset by an improvement in tax revenues from earnings, which exceeded the forecasts for 2007. Overall the income tax forecasts are slightly below the most recent figures from the 2008 Budget. There is no further information at this stage to reassess the 0/10% deficit which remains in the range of £89 million to £104 million.

The improvement in impôt duties in 2007 was largely in respect of Vehicle Registration Duty (VRD). However, with the States decision to abolish VRD in May 2008 following the introduction of GST then future impôt duty forecasts are now reduced by £4 million.

The housing market and, as a result, stamp duty income remain fairly buoyant and the trends in the first part of 2008 suggest that the levels of revenues should at least be maintained and these forecasts will be reviewed again in October when the current year trends will be clearer. The buoyancy in the housing market should not be relied on to continue, and forecasts beyond 2008 reflect some caution with an assumption that these will only increase in line with predicted house price  inflation.  The  latest  forecasts,  reflecting  the  2007  increase,  show  an  improvement  on previous figures.

The main increases in 2007 within other income were in respect of EUSD retention tax and the return on increased cash balances. The rate of this EU tax increases over the next five years and it is likely that some taxpayers will choose not to pay the tax and move their funds outside the island and the forward profile has been adjusted accordingly. However, latest figures for 2008 suggest a further increase at least in the short term. As a result the forward forecasts have been increased marginally from previous figures. The latest proposals to finance the EFW Plant from the Consolidated Fund will have a significant impact on cash balances and as such the forward forecasts have been reduced accordingly. The other items have the potential to fluctuate, so a cautious appraisal of other income has been made.

There is no significant change in the overall States revenue forecasts since the 2008 Budget despite a number of changes and variations within the individual components. The current trends will continue to be monitored and updated in advance of the next forecast for the 2009 Budget in October.

3. Fiscal Strategy Update

The main provisions of the Fiscal Strategy are now in place following the successful implementation of a Goods and Services Tax from 6 May 2008. The new income tax provisions for ITIS and 20% means 20% have been introduced in previous budgets and are already delivering additional revenues.

The 2009 Budget will refine some of the existing provisions and confirm other minor arrangements which are to be put in place. In respect of environmental taxes and associated spending initiatives, these remain under consideration but at this stage firm proposals have not been agreed in a form to bring back to the States. It should be noted that even if funded from new taxes the environmental spending initiatives would still increase States spending limits.

4. Balanced Budgets and the Financial Framework

The Council of Ministers has conducted a thorough business plan review and has confirmed its vision as one of sustainable investment in its priority services for the future of the Island. The financial framework for the next five years therefore remains based on ensuring that forecast budgets are balanced and sustainable over the five year planning cycle.

The latest financial forecast continues to show a very positive position, including the forecast surplus of £67 million for 2009. There is only one significant change from the forecasts produced in October for the 2008 Budget which is the decision to fund the new Energy from Waste Plant from the Consolidated Fund in 2008. This has the effect of introducing a deficit of £43 million in 2008, but then reduces the requirement for this significant capital provision in future years. Notwithstanding this adjustment the financial position and the amount on the Consolidated Fund remain balanced and sustainable, in accordance with the principles of the financial framework, over  the  five  year  period  of  the  plan  and  beyond.  The  financial  forecast  shows  a  positive contribution of over £40 million for the five years to 2013.

The business planning process provides for three-year rolling financial allocations to departments. These must identify the financial implications of all current and forthcoming initiatives, as there is no General Reserve under the new Finance Law. The annual business plan review achieves that by bringing together all the major resource programmes in one integrated process. The capital, ICT, property and legislation programmes have all been reviewed with the necessary ongoing implications included by departments in their expenditure submissions. This is intended to improve financial discipline, and where departments fail to identify these consequences they must expect to meet the requirement from existing allocations. Submissions to the resource programmes are only accepted where they can be linked to strategic objectives, to ensure that any investment is in accordance with the States Strategic Plan.

The annual business plan review is also informed by the quarterly financial monitoring process which has been in place since the introduction of the new Finance Law and this process and the information within it have been the focus for further improvement. The Council receives reports and forecasts each quarter and, as well as informing forward planning, enables the early re- allocation of existing resources to address emerging pressures. Out of this process the early costs of the HCAE and Pandemic Flu have already been identified for 2008 and as these are exceptional, the Council has asked that the Minister for Treasury and Resources take a request to the States for additional expenditure.

Looking further ahead, and acknowledging that the forecasts beyond 2009 can only be indicative due to the significant structural changes within the 0/10% corporate tax strategy, there could still be deficits in the longer term and these must be kept under review and serve as a check against any complacency in the short term.

The best estimate of the ultimate loss of tax from the move to 0/10% is £89 million to £104 million per annum. The actual figure will not be known until 2011 and therefore until then it is not known what action, if any is required.

In the 2008 Budget speech the Minister for Treasury and Resources made a commitment that providing the States maintained the current spending limits and implemented the measures within the Fiscal strategy then the very low rate of GST should be sustainable until at least 2015. What the Fiscal Strategy has done is provide time to make the next set of decisions and time to review the impact of the current tax changes. Remedial measures, if required, could be phased in to achieve balanced budgets. Interest on the Strategic Reserve could be used, if necessary, to make up any funding shortfall in the interim, acknowledging, however, that this cannot be a long term solution.

5. Summary

One of the key objectives within the States Strategic Plan is to maintain sustainable public finances and the financial framework defines the measure as a balanced and sustainable financial position over the five-year planning cycle. The current forecast illustrates that for the five-year period 2009-2013 the financial position of the States will be balanced with a net contribution to the Consolidated Fund.

The Council of Ministers, as requested by the States, is proposing a Business Plan for 2009 within previously agreed limits. However, the Council has identified at Section 3.4 a number of fairly significant spending pressures for which funding has not been able to be identified within the proposals, but will require a level of funding in the near future. These pressures have been identified separately in the Business Plan so that States Members can take a view on whether they merit additional funding.

The Fiscal Policy Panel, the States independent economic advisors, will produce its first report in the Autumn and this will inform the proposals for the 2009 Budget and also looking ahead the development of the financial framework for the new Strategic Plan in 2009.

3. REVENUE EXPENDITURE ALLOCATIONS 2009

The Council of Ministers is proposing revenue expenditure allocations within the spending limits approved in principle in the Annual Business Plan 2008 which incorporates the outcomes from the business planning process conducted during January to May of this year.

1. Annual Business Plan 2008

As part of the 2008 Business Plan debate the States agreed an amendment to the proposition to request that the Chief Minister should present future Business Plans within the spending limits agreed for 2009 to 2012. These spending limits represent increases over that period of between 3% and 4% and the Council has agreed that it's objective is to propose cash limits within these levels.

The Council's deliberations have also been informed by a revised financial forecast, reflecting the provisional 2007 Outturn, which indicates that the forecasts have not changed significantly from those presented in the 2008 Budget.

Despite this fairly healthy financial position the Council was reminded by the Economic Advisor that increasing States spending at a time when the economy was growing, and at full capacity, would be likely to result in an inflationary spiral. This would be driven by the demand, in particular for labour, exceeding supply and resulting in pay and price inflation.

It is against this background that the Council has conducted the business planning process for 2009-2013.

Table 3.1 – Net revenue expenditure movements from 2008 to 2009

Notes to Table 3.1:

1. The Overseas Aid Commission budget is based on an annual increase of 5% and this has been used as a planning assumption until such time as any specific proposition is brought to introduce a new allocation. The budget currently appears as a grant from the Chief Minister's department, solely for the purpose of the expenditure allocations, as it has not yet been established as a States funded body under the Finance Law.
2. For the purpose of the total expenditure allocations the repayment of internal capital debt will be approved  as  part  of  the  allocation  to  the  Treasury  and  Resources  department  to  enable  the repayment back to the Consolidated Fund. This is neutral in overall terms and excluded from the financial forecasts.

3. The provision for annual pay awards is based on the latest inflation assumptions with a provision of 3.2% for the June 2008 award and 2% for June 2009, being the assumption for March 2009 RPI less the estimated effect of GST.
4. The provision for uprating of income support, other benefits and supplementation is shown separately from non-staff inflation as it is based on a different set of assumptions (see section 3.5)
5. The service changes reflect previous resource allocation decisions in respect of growth in Health and Social Services and Overseas Aid as well as additional funding and savings identified as a result of this year's business plan review (see section 3.3).

6 There have been a number of minor service transfers including further transfers to consolidate the

property holdings function in the Treasury and Resources department.

7. The allocation of efficiency savings of £300,000 represents the final year of the £20 million change programme.
8. Further details of the changes in Departments' expenditure allocations between 2008 and 2009 are provided in the supporting Annex to the draft Annual Business Plan 2009.

2. Business Plan Review 2009 to 2011

Background to process

The business planning process for 2009 began in December last year when departments were asked to summarise the service pressures, initiatives or opportunities for savings that were apparent  since  the  2008  Business  Plan.   It was  also  agreed  with the  Scrutiny  Chairmen's Committee that the individual scrutiny panels would be briefed at each stage of the process and that the same information would be cascaded to all other States members.

The departments' initial submissions were summarised and presented to the Council of Ministers in January. The Council were also advised of the latest pay and inflation assumptions the provisional 2007  outturn  and  the current  economic  background.  The  Council considered its overarching policies and financial framework and concluded that taking all these factors into account it must propose cash limits for 2009 to 2013 within the approved spending levels from the Annual Business Plan 2008. The Council requested that departments submit their proposals for 2009 taking into account the service pressures, initiatives and opportunities for savings that had been identified.

Initial outcomes

At this early stage the Council recognised that three spending pressures were of a high priority and essentially already committed, those being additional funding for the Prison, the Aquasplash contract and the additional allowances for GST.

The Council also at this stage accepted the opportunities for savings identified by the Education, Sport and Culture department from demography and higher education. The background and the Council's initial outcomes were presented to all States members in early February.

Later in February, the Council received presentations from each Minister summarising the financial position of their department, the base pressures, changes in priorities and whether or not the spending pressures which had been identified should be delivered and if so how they could be accommodated within the provisional cash limits. The Council considered the presentations by Ministers and generally accepted the priorities that were proposed and the reallocations between services that were outlined.

The outcome of the discussions was that only the previously agreed spending pressures could be funded within the spending limits unless the Council was prepared to propose tighter pay and benefit uprating in particular, not providing for the one-off effect of GST on the RPI. The Council would be provided with revised pay and inflation assumptions after the March RPI in late April and was also expecting the outcomes of the spending review by the Comptroller and Auditor General (CAG), potentially identifying opportunities for further savings in services. This information together with the feedback from the period of Scrutiny review in April would inform the Council's final proposals in May.

Scrutiny Review

The Council agreed the provisional proposals to present for the period of Scrutiny Review. At that stage the proposals represented cash limits for departments broadly within the overall spending limits but with no change to the pay and inflation provision, pending the March RPI. The Council also identified the additional spending pressures and initiatives that it was likely to prioritise as part of its final proposals in May and requested the individual scrutiny panels' comments on the relative priorities of these pressures. The Council also requested that scrutiny comment on whether the extent and priorities of the service pressures identified would justify an increase in overall States spending limits.

The individual scrutiny panels conducted their review during April, generally working closely with the relevant departments, officers and Ministers. The majority of panels then submitted reports to the Council for consideration. There was then an opportunity for the views of the individual scrutiny panels to be presented by their chairmen at a meeting in May with the Council of Ministers. This also provided the Council with an opportunity to clarify comments in the individual scrutiny reports.

The Scrutiny review provided a positive contribution to the process and the Council was influenced by the views of Scrutiny particularly, in relation to maintaining the overall spending limits, not supporting the principle of a contingency provision and in terms of some of the relative priorities of the service pressures identified. The Council accepted comments that the period for the scrutiny review was limited, but this was necessitated by the timetable for the current annual process.

Final proposals

In May, having received the views of scrutiny, the Council were also advised of the revised pay and inflation assumptions following the March RPI. The Council considered these assumptions in respect of the proposals and policies for pay and benefit uprating and concluded that as a principle, the provisions should in most cases exclude the one-off effect of GST on the RPI.

The Council also received the first report of the CAG on states spending which identified opportunities for a number of savings and efficiencies over the next five years.

The Council then reviewed the service pressures and initiatives that had been identified in February and March alongside the potential savings that could be derived from the revised pay and inflation assumptions and also the opportunities for savings identified by the CAG.

The Council concluded that:

• the proposals for the 2009 Business Plan must be within the approved spending levels

• the previous resource allocation decisions should be maintained, which provided;

o 2% growth for Health and Social Services

o 5% annual increase in the contribution to Overseas Aid

o protection against the rising trend in cost of welfare and residential care

• the spending commitments identified at an early stage of the process be included

• the savings identified by Education, Sport and Culture be taken;

• the provisions for pay and benefit uprating should be based on the latest assumptions and generally exclude the one-off effect of GST on the RPI

• a target from the savings opportunities identified by the CAG's spending review be included from 2010 to 2011, with the detail to be identified in future business plans

• the additional spending pressures be prioritised and those which are affordable within the approved spending limits be included in 2009

• for 2010 and 2011 with any available balance a provision be set aside for further service pressures and initiatives to be prioritised as part of future business plans or the new Strategic Plan

The outcomes of the final proposals for department's cash limits for 2009 are summarised in Table 3.1 and detailed in the following parts of this section of the report.

3. Service Pressures and Savings

Departments identified service pressures and initiatives which could not be accommodated within their existing cash limits and which after a thorough business plan review of priorities would not displace the existing services carried out by the department in pursuit of its strategic objectives.

The Council was then faced with prioritising these pressures and initiatives, informed by the information from departments and the views of the individual scrutiny panels, from the available funding within the overall spending limits.

Savings included in proposed cash limit

As part of the business plan process departments were asked to identify opportunities for significant savings alongside the various service pressures. The following savings were proposed by the Education, Sport and Culture department:

• Higher education demographic savings – amounting to £325,000 from 2009

• Predicted underspend on Student Grants – amounting to £689,000 from 2009

The Council was informed that the savings are based on a number of assumptions including demographic projections, the impact of the Skills Executive and the number and mix of university places. The Council recognised these assumptions when agreeing to include the savings as part of the overall spending proposals.

Service pressures included in proposed cash limits

Within the approved spending limits the Council has been able to include provision for the initial spending commitments agreed in February relating to:

• the Prison Improvement Plan;

• funding of the additional GST allowances for those on low incomes but falling between the income support and income tax systems; and

• the funding required to maintain the Aquasplash pool contract with Serco.

As a result of the Council's decisions in relation to pay and price provisions and the future targets being set for savings from the opportunities identified by the CAG's spending review the Council  was  able  to  prioritise  the  service  pressures  and  initiatives  shown  in Table  3.2  for inclusion within the approved spending limits.

Table 3.2 – Additional funding for service pressures and initiatives included in cash limits

In respect of the service pressures for Law Officers the Council is proposing recurring funding from 2010 and has agreed interim funding upto this level from the Criminal Offences Confiscation Fund (COCF) for 2009. Similarly funding for Probation Family Welfare is proposed for 2010 but the Council has agreed that this can begin in 2009 from a transfer of part of the underspend in the Magistrates Courts capital vote.

The Council also recognised that by funding the Criminal Injuries Compensation Scheme (CICS) payments  from  the  COCF  this  would  provide  sufficient  funding  within  the  Home  Affairs department cash limit to progress both Sex Offenders Monitoring and Legislation and the setting up of a Vetting and Barring Panel.

The Council also agreed that the Social Security Minister be charged with bringing forward proposals for change to the Supplementation scheme which, if approved by the States, will enable the costs of the scheme to be contained within existing cash limits.

The  Planning  and  Environment  department  have  brought  forward  proposals  to  improve  the performance of the department by funding more staff and resources from an increase in fees for certain  planning  applications.  These  proposals  have  been  agreed  by  the  Council  and  are included in the business plan as an increase to the spending of the Planning and Environment department but this is offset by an equivalent increase in fees – thus no increase to the Planning and Environment department's cash limits.

4. Service Pressures and initiatives not included in cash limits

In addition to the service pressures included in the proposed cash limits the Council is also acutely aware of a number of other initiatives which have been identified during the course of the business planning process. The Council highlighted a number of these unfunded pressures in its provisional proposals document for the Scrutiny Review at the end of March.

Since that time further work has been done particularly in reviewing the pressures on property and  infrastructure  maintenance  alongside  a  comprehensive  asset  evaluation  exercise  and property  condition  survey  which  will  inform  the  GAAP/Resource  Accounting  and  Budgeting proposals for 2010.

The Council believes it is important for the States to recognise that by maintaining the previously agreed spending limits that there are a number of service pressures and initiatives, which will remain unfunded, and will still need to be addressed in due course.

The Council has not been able to accommodate these pressures, the extent of which is shown in Table 3.3, within the approved spending limits for 2009. The Council has been guided by the decision of the States in last year's business plan debate and more recently informed by the Scrutiny Review that the approved spending limits should be adhered to, and so has presented its draft Annual Business Plan on that basis.

However, the Council acknowledges the desirability of these items and will be giving further consideration as to how these pressures can be addressed and, will also ensure that the relative priorities are reviewed as part of the new Strategic Plan and future business plans.

Table 3.3 – Service pressures and initiatives not included in cash limits

In most instances the submissions provided by departments have been available for review during the business planning process. Further information is provided in respect of:

• Chief Minister's department – experience in recent years has shown the department is not properly resourced to meet the full range of emerging pressures and represent Jersey's interests as the centre of it's Government. The additional resources would allow:

• creation of a core international relations unit, to provide sufficient expertise to promote  Jersey's  developing  International  Identity  including  increased representation in Brussels and London;
• a good standard of office support to the Chief Minister as recommended by the Privileges and Procedures Committee;
• a dedicated resource to implement the Social Policy Framework and;
• corporate resources support to improve performance across States departments.

• Law officers additional resources – these pressures are in addition to the £230,000

proposed within cash limits and relate to:

• further base pressures and staff retention issues;
• addressing increased workloads;
• additional  resources  contingent  on  the  approval  and  implementation  of  the Freedom of Information Law;

o proposals from the Constitution Review Group for the secondment of an assistant legal advisor to Brussels; and

o resources required to comply with the Public Records Law.

• Environment (Energy/efficiency) – arising out of consultation on the Energy Green Paper proposals funding to establish:

o an energy task force and advisory body;

o early initiatives of weatherisation for low income homes;

o a "Green schools" educational programme; and

o an energy advice service.

• Environment (recycling) – the Solid Waste Strategy is reliant upon increasing recycling and initiatives. In the short term by extending the island wide bring bank system but progressing to supplement the Island wide kerb side collection system

• Environment (Sustainable transport) – following consultation on the Integrated Travel and Transport Plan the objectives are to reduce congestion, pollution and road injuries by initiatives involving improving bus services, road safety initiatives, cycle routes, footpaths and public awareness campaigns

• Infrastructure maintenance underfunding – this pressure was identified during the business planning process, primarily for highway infrastructure, but now also includes a forecast of the shortfall in sea defence and sewers infrastructure

• Property maintenance underfunding – this pressure was identified during the business planning process but could not be quantified, further work has now been completed to allow a forecast of the additional funding required. The funding relates to:

o a forecast profile of the high priority backlog maintenance of States properties

o the annual underfunding of the basic annual maintenance programme

o compliance and monitoring regime

• Paying rates on States properties – this pressure highlights the potential cost to the States of paying rates on its properties if this is not offset in some way, perhaps from the

Island-wide rate.

These pressures have been identified separately within the report so that States Members can take a view on whether they merit additional funding.

In addition the Health and Social Services department is developing a New Directions policy to address the rising cost of health care and consequences of an ageing population. The costs will be significant but the policy is not sufficiently developed to include in this Business Plan. This will be progressed and considered as part of the new Strategic Plan and future business plans.

5. Revised Inflation Assumptions  

The Business Plan 2008 included assumptions for inflation, which at that time were based around the March 2007 RPI and forecasts of future interest rate changes.

In this year's business plan the pay and inflation provisions are similarly based on the latest March 2008 RPI and forecast assumptions from the States Economic Advisor in April taking account of predicted changes to interest rates and other factors.

In 2008 and 2009 there is the further complication of the one-off effect of the introduction of the Goods and Services Tax (GST) in May 2008 on the RPI. This is estimated to increase the RPI by as much as 2% for the 12 months beginning with the June 2008 RPI (assuming that all retailers pass GST on to the consumer).

GST is an integral part of the States Fiscal Strategy which secures the future of the finance industry in the Island and allows Islanders to continue to enjoy their high quality of life with a high standard of public services and low personal/corporate taxation. The Fiscal Strategy recognises that Islanders have to pay slightly more tax now to prevent a much larger increase in tax in the future. GST is the means by which this will be achieved.

The States can not afford to fund the costs of GST in pay awards to its employees otherwise it will not recoup the net £45 million revenue. It will also mean that GST will not meet its objectives as public sector employees will not in fact pay more in tax because they will initially be compensated for GST through higher wages. Furthermore, such an approach could influence decisions in the private sector.

If the outcome is that wages across the economy rise by the amount of GST and without additional productivity improvements then the outcome will be inflationary. Higher inflation is bad for all Islanders and Island businesses and will undermine the Fiscal Strategy because it will reduce the scope for economic growth and tax revenues. The purpose of GST is to take money out of the economy, and therefore from individual's pockets. Only in this way will it have a downward effect on inflation.

The States has however, already agreed to protect those people on low incomes from the effect of GST by:

• providing £1.75 million in additional funding for Income Support;

• increasing tax exemption thresholds by 6% in the 2008 Budget to assist those on lower incomes, and

• setting aside £400,000 for additional allowances to protect those low income earners who fall between the Income Support and Income Tax systems.

The Council has carefully considered the pay and inflation provisions based on the advice of the States Economic Advisor and against the background of provisions already made for those on lower incomes.

Provision for Annual Pay Awards

The Council has maintained its policy of making provision for pay awards at the level of the March RPI, allowing negotiations with employee groups up to that level. In the case of civil servants, police and prison officers these groups have already accepted the level of March 2008 RPI at 3.2% being the final year of a three-year agreement at RPI.

Other employee groups, notably Manual Workers, have expressed their intention to pursue negotiations for a much higher increase. This is not affordable within approved States spending limits and consequently the Council is proposing that the States confirm the pay award assumptions as part of the revenue expenditure proposition for 2009.

For future years the Council is proposing a provision at the forecast of RPI, and for June 2009 less the one-off effect GST estimated at 2%. Based on current assumptions March 2009 RPI would be 4%, less the 2% estimated one-off effect of GST, leaving a 2% provision.

Uprating of Income Support and Benefits

The uprating of Income Support benefits is currently required to be proposed to the States by the Minister for Social Security. The Council is proposing that the average of the new Retail Price Index for Low Incomes (RPI Low Incomes) and Average earnings, excluding the effect of GST, is provided for. The Council's proposal takes account of the latest inflation assumptions and allowances already agreed to protect those on lower incomes.

Uprating of Supplementation

The uprating of supplementation is currently set at the annual increase in average earnings and is applied in January each year. Provision has therefore been made for the latest earnings assumptions.

Non staff inflation

The provision for non-staff costs is set at the States inflation target for RPI(x) of 2.5% per annum and departments are required to work within this provision and prioritise the allocation as appropriate

6. Service Transfers

There have been a number of minor functional changes between the services carried out by individual departments since the last business plan. These are summarised in Table 3.1.

The transfers include some of the remaining transfers to consolidate the many property holding functions within the Treasury and Resources department. Transfers have been made to the central procurement office in the Treasury from all departments to establish a permanent procurement expertise to deliver further savings in the future. These additional efficiency savings are required to gradually replace the savings from the change programme currently being delivered by capital receipts from asset disposals.

7. Efficiency Savings

2009 is the last year of the five-year Change Programme which began in 2005 and by the end of 2009 the States will have reduced cash limits by the target of £20 million per annum efficiency savings. Initial allocations were made to the programme areas identified to drive through the efficiency savings, and the current profile is shown in Table 3.4.

The Change Programme includes a programme for the property savings which for a period of years shows that £4 million would need to be found from property capital receipts. This income flow can not be maintained indefinitely and needs to be replaced by recurring savings and these are being identified through an expansion of the procurement efficiency programme and further efficiencies within property revenue expenditure in the longer term. Progress continues to be made in consolidating the property management function with further transfers of relevant budgets to the Property Holdings section identified and agreed for 2008 and 2009. This will assist the attribution of savings in the longer term. The Comptroller and Auditor General (CAG) recognised the significant reductions in departments' cash limits over the last five years as part of his recent spending review.

Table 3.4 – Current profile of efficiency savings targets