underspends during term of current MTFP

WQ.279/2018

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY R.J. WARD OF ST. HELIER

ANSWER TO BE TABLED ON MONDAY 3rd DECEMBER 2018

Question

Will the Minister provide a total figure for the amount of underspends during the term of the current Medium Term Financial Plan for the following areas –

1. capital projects;
2. Brexit preparation;
3. infrastructure projects;
4. health expenditure;
5. Home Affairs; and
6. education spending;

and will the Minister also detail where any underspends currently reside in the States' finances? Answer

Amounts allocated to capital projects remain available to spend for the purpose they were allocated across multiple years until such time that the project is complete. Capital allocations are monitored throughout the year to identify any amounts no longer required that could be reprioritised across the organisation.

Examples of the reprioritisation of unspent capital allocations can be seen in the Budget 2018 capital programme where a total of £5.8 million was reallocated across a number of capital projects. A further £3.7 million of unspent capital allocations were identified in advance of the Budget 2019 with £1.4 million proposed to contribute to the 2019 capital programme and £0.5 million to be transferred to an existing capital project to increase its scope.

2. Many States departments affected by Brexit have been managing their preparation through their base budgets. However, the majority of the funding to manage the impact of Brexit on the States of Jersey and the wider community has been managed through the External Relations Department base budget. The Department was created in 2017 (in the MTFP Addition for 2017 – 2019), having previously been part of the Chief Minister's Department. The total Department underspend in 2017 was £417,659.

A number of specific Brexit-related allocations have also been made to Departments, including External Relations, from Central Contingencies in this MTFP period. As at the end of 2017, of the £998,000 allocated in this way, £699,427 was spent with the remaining £298,573 identified as no longer required so returned to Central Contingency.

Further allocations have been made in 2018 to manage the impact of Brexit. The 2018 outturn will be confirmed at year end and reported as part of the Annual Report and Accounts.

3. Please see the response to part a).

d-f) The underspends of those areas are highlighted in the table attached as Appendix 1.

The 2018 outturn will not be known until the end of the year and will be reported as part of the Annual Report and Accounts.

Appendix 1 – Departmental Underspends 2016 - 2017