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Medium Term Financial Plan 2016 – 2019 (Proposition only)

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STATES OF JERSEY

MEDIUM TERM FINANCIAL PLAN 2016 – 2019

Lodged au Greffe on 14th July 2015 by the Council of Ministers

STATES GREFFE

2015   Price code: C  P.72

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to  receive  the  draft  Medium  Term  Financial  Plan  2016 – 2019  and,  in accordance with the provisions of Articles 8 and 8A of the Public Finances (Jersey) Law 2005 –

  1. to approve –
  1. the intended total amount of States income for each of the financial years 2016 – 2019, as set out in Summary Table A and being the central forecast of the States income forecast range for 2016 – 2019 as shown in Figure 18,
  2. the total amount of States net expenditure for each of the financial  years  2016 – 2019,  being  the  total  net  revenue expenditure and the total net capital allocations, as set out in Summary Table B,

in order to deliver a balanced budget by 2019;

  1. to approve the following amounts (not exceeding in the aggregate the total amount set out in paragraph (a)(ii) above) –
  1. the  appropriation  of  an  amount  to a  revenue  head  of expenditure for each States funded body (other than the States trading operations) being the body's total revenue expenditure less its estimated income for the financial year 2016 as set out in Summary Table C,
  2. the amount to be allocated for Contingency for the financial year 2016 as set out in Summary Table D,
  3. the total amounts set out in Summary Table F that in a Budget for the financial years 2016 – 2019 may be appropriated to capital heads of expenditure, being an amount that is net of any proposed capital receipts, noting that the sum of up to £1 million of the 2016 allocation, up to £39 million of the 2017 allocation and up to £8,233,000 of the 2018 allocation will be subject to the States' approval of the intended transfer of  funds  from  the  Strategic  Reserve  Fund  detailed  in paragraph (f),  and  the  use  of  funding  from  the  Criminal Offences Confiscation Fund subject to the requirements of the Proceeds of Crime (Jersey) Law 1999, and noting that future amendments  to the  Medium  Term Financial  Plan  and appropriate legislation, as necessary, will be brought forward for  approval  to  facilitate  the  funding  for  the  office consolidation project and a future hospital provision;
  1. to approve the total estimated non-cash net revenue expenditure for depreciation for States funded bodies (other than the States trading operations) for the financial year 2016 as set out in Summary Table C;
  2. to approve the following, as set out in Summary Table G, in respect of each States trading operation for the financial year 2016 –
  1. its estimated income;
  2. its estimated expenditure;
  3. its estimated  minimum  contribution  to be  made  to the Consolidated Fund, if any;
  1. to approve, in respect of each States trading operation, the total cost of the capital projects that each is scheduled to start during the financial years 2016 – 2019 as set out in Summary Table H;
  2. to agree,  in principle, that  the  use  of  the  Strategic  Reserve  Fund income, over and above that required to maintain the real value of the Fund (namely, in accordance with their Act dated 23rd September 2014, its value at 31st December, 2012 uprated in line with increases in Jersey RPI(Y)), to be available to transfer to the Consolidated Fund and to be allocated for the measures identified in Summary Table J, and that withdrawals should be made from the Consolidated Fund in 2017 and 2019 to replenish the Strategic Reserve Fund and to request the Minister for Treasury and Resources to bring forward for approval the necessary report and proposition to enable the use of the aforesaid additional income of the Strategic Reserve Fund and the intended funds transfers.

COUNCIL OF MINISTERS

NOTES:  1.  A separate Proposition to withdraw the Committee of Inquiry funding

(£14 million) and any other funding for "short-term" measures from the  Strategic  Reserve  Fund  will  be  lodged  by  the  Minister  for Treasury and Resources in time to be debated alongside the draft MTFP 2016 – 2019 in October 2015.

  1. A proposition to amend the formula for the States Grant to the Social Security Fund to cap the Grant at 2015 levels for the period of this MTFP will be required from the Minister for Social Security to be debated alongside the draft MTFP 2016 – 2019 in October 2015.
  2. Legislation  changes  will  be  brought  forward  to  allow  the  Health Insurance  Fund  to make  a  contribution  to Health  expenditure  of £15 million in 2017 and £15 million in 2018, in advance of the full implementation of the proposed Health charge, and proposals will be required from the Minister for Social Security to be debated alongside

the draft MTFP Addition for 2017 – 2019 in September 2016. It is the Council of Ministers' intention to bring forward the proposals for a Sustainable Funding Mechanism for Health at the earliest opportunity. If it is possible to introduce a new Health charge in 2017, then this could be offset against the proposed contributions to Health funding from the Health Insurance Fund (HIF).

  1. The Minister  for  Social  Security  will  also  need  to  bring  forward legislative amendments to the Income Support (Jersey) Law 2007, the Christmas  Bonus  (Jersey)  Law  2011  and  the  Social  Security (Television Licence Benefit) (Jersey) Law 2006 in order to achieve savings of £10 million in the Social Security budget by 2019.
  2. The full  Medium  Term Financial  Plan  is published  as  a  separate document.

Summary Table A – Proposed States Income Targets 2016 – 2019

Figure 18 – Forecast range of States Income to 2019 (June 2015)

Summary Table B – Proposed Total States Net Expenditure for 2016 – 2019

Summary Table C – Proposed Net Revenue Expenditure for States Funded Bodies for 2016

Summary Table D – Summary of Proposed Central Contingency Allocations for 2016

Summary Table E – Proposed Total Capital Expenditure Programme Funding Sources for 2016 – 2019

Notes:

  • Future  amendments  to  the  Medium  Term  Financial  Plan  and  appropriate legislation as necessary will be brought forward for approval to facilitate the funding for the office consolidation project and a future hospital provision.
  • The  Prison  Improvement  Phase 6  project  is  dependent  on  funds  being available in 2018 from the Criminal Offences Confiscation Fund (COCF).

Summary Table F – Proposed Total Capital Programme and Indicative Capital Projects for 2016 – 2019

Summary Table F (cont'd.) – Proposed Total Capital Programme and Indicative Capital Projects for 2016 – 2019

* Signifies projects where the budget will be allocated to Jersey Property Holdings to deliver. Notes:

  • Future  amendments  to  the  Medium  Term  Financial  Plan  and  appropriate legislation as necessary will be brought forward for approval to facilitate the funding for the office consolidation project and a future hospital provision.
  • The  Prison  Improvement  Phase 6  project  is  dependent  on  funds  being available in 2018 from the Criminal Offences Confiscation Fund (COCF).

Summary Table G – Proposed Income and Expenditure of each States Trading Operation for 2016

Summary Table H – Proposed Total Capital Programme for

each States Trading Operation and Indicative Capital Projects for 2016 – 2019

Summary Table H (cont'd.) – Proposed Total Capital Programme for each States Trading Operation and Indicative Capital Projets for 2016 – 2019

Summary Table I – Consolidated Fund Forecast 2015 – 2019

Summary Table J – Intended Strategic Reserve Transfers for 2015 – 2019

Related Publications

Propositions

Medium Term Financial Plan 2016 - 2019 (as adopted as amended) 8 October 2015
Medium Term Financial Plan 2016 - 2019 (P.72/2015) - annex as adopted as amended 8 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015) – draft annex 24 July 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015) – addendum (Income Forecasting Group (IFG) Detailed Report). 15 July 2015
Medium Term Financial Plan 2016 – 2019 (Full Plan) 14 July 2015

Amendments

Medium Term Financial Plan 2016 – 2019 (P.72/2015): seventh amendment (P.72/2015 Amd.(7)) – amendment 29 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): ninth amendment (P.72/2015 Amd.(9)) – amendment 29 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): eighth amendment. 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): ninth amendment. 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): tenth amendment. 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): twelfth amendment. 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): thirteenth amendment. 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fourteenth amendment. 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fifteenth amendment. 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): eleventh amendment 22 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): sixth amendment. 21 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): seventh amendment. 21 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): third amendment. 18 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fourth amendment. 18 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fifth amendment. 18 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): second amendment. 16 September 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015) – amendment. 7 September 2015

Comments

Medium Term Financial Plan 2016 – 2019 (P.72/2015): tenth amendment (P.72/2015 Amd.(10)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): eleventh amendment (P.72/2015 Amd.(11)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): twelfth amendment (P.72/2015 Amd.(12)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): thirteenth amendment (P.72/2015 Amd.(13)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fourteenth amendment (P.72/2015 Amd.(14)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fifteenth amendment (P.72/2015 Amd.(15)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): second amendment (P.72/2015 Amd.(2)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fourth amendment (P.72/2015 Amd.(4)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): fifth amendment (P.72/2015 Amd.(5)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): sixth amendment (P.72/2015 Amd.(6)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): seventh amendment (P.72/2015 Amd.(7)) – amendment (P.72/2015 Amd.(7)Amd.) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): eighth amendment (P.72/2015 Amd.(8)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): second, eighth and ninth amendments (P.72/2015 Amd.(2), (8) and (9)) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): ninth amendment (P.72/2015 Amd.(9)) and amendment (P.72/2015 Amd.(9)Amd.) – comments. 5 October 2015
Medium Term Financial Plan 2016 – 2019 (P.72/2015): comments. 1 October 2015

Votes

Vote: Adopted 8 October 2015

Minutes

Corporate Services - Approved Panel Minutes - 8 October 2015 8 October 2015
States Minutes 8th October 2015 8 October 2015

Hansard

States Meeting Transcript - 8th October 2015 8 October 2015

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