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Independent Jersey Care Inquiry: amendment to Medium Term Financial Plan 2013 – 2015.

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STATES OF JERSEY

INDEPENDENT JERSEY CARE INQUIRY: AMENDMENT TO MEDIUM TERM FINANCIAL PLAN 2013 – 2015

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

STATES GREFFE

2015   Price code: B  P.75

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to refer to their Act dated 8th November 2012 in which they approved the Medium Term Financial Plan 2013 – 2015, to their Act dated 4th June 2014 in which they agreed to amend the Medium Term Financial Plan 2013 – 2015, and to their Act dated 25th March 2015 in which they agreed to request the Council of Ministers, if necessary, to bring forward for approval a proposition to amend the Medium Term Financial Plan 2013 – 2015 in order to provide additional funding in relation to the Independent Jersey Care Inquiry; and

to agree, in accordance with the provisions of Articles 9(1)(c) and 9(2)(ca) of the Public Finances (Jersey) Law 2005 –

  1. that the total amount of States' net expenditure in 2015 should be amended  from  £720,629,500  as  approved  on  4th  June 2014  to £730,629,500  (as  set  out  in the  extract  from  Summary  Table A attached at Appendix 1);
  2. that the amount appropriated to contingency expenditure should be amended from £33,482,900 in 2015 to £43,482,900 in 2015 (as set out in Summary Table C in Appendix 2).

COUNCIL OF MINISTERS

REPORT

Background

At  their  Sitting  of  24th March  2015, the  States approved (on  25th  March 2015) P.20/2015, which proposed that the States be asked whether they were of opinion –

"(b)  to request the Council of Ministers, if necessary, to bring forward for

approval a proposition to amend the Medium Term Financial Plan 2013 – 2015 accordingly, in order to provide additional funding in relation to the Independent Jersey Care Inquiry;".

This proposition and report implements part (b) of the States' approval of 25th March 2015 and requests the approval of the Assembly to vary the Medium Term Financial Plan 2013 – 2015 and to approve an additional £10 million in 2015 in order to ensure that the Independent Jersey Care Inquiry can complete its work. The amount will be held  in  Contingency  and  drawn  down  as  required  by  the  Inquiry  and  States Departments for the purposes of the Independent Jersey Care Inquiry only.

The  Minister  for  Treasury  and  Resources  has  lodged  a  proposition  to  withdraw £14 million from the Strategic Reserve for this purpose. The remaining £4 million will be included in the Medium Term Financial Plan 2016 – 2019 as an allocation to Contingency. Any balance from this amount not required for the purposes of the Inquiry will be returned to the Strategic Reserve Fund.

Latest financial position for the Independent Jersey Care Inquiry

The latest position for the Inquiry and States Departments can be summarised as follows –

 

 

Actual to 30/4/2015

Forecast 2015 (inc. contingency

Forecast 2016

Total

Inquiry

£7,908,643

£5,050,521

£753,000

£13,712,164

Departments

£2,647,604

£2,525,794

£1,291,101

£6,464,499

Total

£10,556,247

£7,576,315

£2,044,101

£20,176,663

Current available funding is £9 million. Forecast expenditure to the end of 2015 is £18,132,562. An additional £10 million is therefore required to be approved in 2015.

Financial and manpower implications

Total States net expenditure will increase in 2015 from £720,629,500 to £730,629,500, and the amount appropriated to contingency expenditure in 2015 will increase from £33,482,900 to £43,482,900.

There are no additional manpower implications.

APPENDIX 1

Extract from MTFP 2013 – 2015 – Summary Table A

Per 2015 Budget

2015 £'000

 

States Expenditure

 

Departmental Net Revenue Expenditure (Revised)  687,146.6 Central Allocations (Revised)  43,482.9

 

Total Net Revenue Expenditure (excl: Depn)

730,629.5

APPENDIX 2

MTFP 2013 – 2015 – Summary Table C

Per 2015 Annex Update

2015 Central Contingency Allocations

£'000

Net Pay Provision  3,764.4 Restructuring Provision (Net of Savings)  7,170.0

 

Allocation for Contingencies

 

- Central Reserves - AME  2,000.0

- Central Reserves - DEL

- Central Reserves - One Off  1,000.0

- Central Contingency - Smoothing Reserve

- Commitments for "One-Off Items"

- Contingency for Emerging Items  4,000.0

- Contingency for Independent Jersey Care Inquiry  10,000.0 17,000.0

 

Allocation for Growth

 

Allocation for Growth for 2013 Allocation for Growth for 2014 Allocation for Growth for 2015

– 2015 Budget Measures  15,548.5 Total Central Contingency Allocations  43,482.9