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WQ.359/2024
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY K.M. WILSON OF ST. CLEMENT
QUESTION SUBMITTED ON MONDAY 14th OCTOBER 2024
ANSWER TO BE TABLED ON MONDAY 21st OCTOBER 2024
Question
"In relation to Government departmental underspends, will the Minister advise –
- which departments, if any, are currently underspending and what the current level of any such underspends are, expressed both as an amount within the departmental budget and as a percentage of that budget;
- the reasons, if known, for any such underspends;
- the projected underspend for each department as of 31st December 2024; and
- where underspends are anticipated, whether these funds have been re-allocated in advance, and if so, to which departments, the reasons for any such increases and the anticipated improvement and efficiency gain arising from any such allocations?"
Answer
- The Council of Ministers receive financial information quarterly with the latest provided being that as at 30 June 2024 (with underspends highlighted):
£'000 | Year To 30 June | Forecast % to Budget | Full Year | Forecast % to Budget | ||||
Budget | Actual | Under / (Over) Spends | Budget | Forecast | Under / (Over) Spends | |||
Cabinet Office | 57,258 | 54,759 | 2,499 | 4.4% | 90,909 | 92,129 | (1,220) | (1.3%) |
Jersey Overseas Aid | 8,953 | 6,707 | 2,246 | 25.1% | 20,041 | 20,041 | - | 0.0% |
Customer and Local Services | 53,968 | 52,177 | 1,791 | 3.3% | 108,085 | 104,374 | 3,711 | 3.4% |
Treasury and Exchequer | 82,772 | 81,414 | 1,358 | 1.6% | 161,449 | 160,064 | 1,385 | 0.9% |
Non Ministerial States Bodies | 22,139 | 20,829 | 1,310 | 5.9% | 45,631 | 46,389 | (758) | (1.7%) |
Justice and Home Affairs | 21,537 | 20,632 | 905 | 4.2% | 43,008 | 41,789 | 1,219 | 2.8% |
Financial Services | 5,675 | 5,064 | 611 | 10.8% | 11,546 | 10,827 | 719 | 6.2% |
Ministry of External Relations | 1,638 | 1,455 | 183 | 11.2% | 3,558 | 3,428 | 130 | 3.7% |
States of Jersey Police | 14,871 | 15,062 | (191) | -1.3% | 29,875 | 30,112 | (237) | (0.8%) |
Environment | 5,822 | 6,481 | (659) | -11.3% | 12,033 | 11,686 | 347 | 2.9% |
EDTSC | 19,044 | 20,243 | (1,199) | -6.3% | 37,523 | 38,934 | (1,411) | (3.8%) |
Children, Young People, Education and Skills | 111,720 | 112,899 | (1,179) | -1.1% | 223,254 | 225,756 | (2,502) | (1.1%) |
Infrastructure | 24,369 | 25,977 | (1,608) | -6.6% | 59,501 | 60,346 | (845) | (1.4%) |
Health and Community Services | 151,826 | 165,650 | (13,824) | -9.1% | 304,551 | 328,789 | (24,238) | (8.0%) |
- Below we have included the key drivers to the underspends to 30 June.
Department | Reasons for year to 30 June variance |
Cabinet Office | The forecasted underspend in the SPPP is attributed to staff vacancies across services and efforts to meet the 20% growth cut target. Additionally, the department is preparing for the role reduction target set for 2025. However, this is expected to be offset by year-end, potentially leading to an overspend. |
Jersey Overseas Aid | This variance is due to a timing difference; the budget is expected to be fully utilized by the end of the year. |
Customer and Local Services | CLS is forecasting an underspend in Income Support Weekly Benefits. This is primarily due to lower- than-expected earned income volumes and the timing of various ad hoc benefit payments. |
Treasury and Exchequer | The underspend is primarily due to staff vacancies. |
Non Ministerial States Bodies | The underspend is largely due to staff vacancies and a minor overachievement of income. However, this is expected to be offset by year-end, potentially leading to an overspend. |
Justice and Home Affairs | The underspend is primarily due to staff vacancies. |
Financial Services | The underspend is mainly driven by staff vacancies and a reduction in business administration costs. |
Ministry of External Relations | The underspend is primarily due to staff vacancies. |
(C) This has been included within the answer to part a).
(d) Following the proposal in Budget 2025 to reduce certain previous growth allocated for 2024 by 20%, the Principal Accountable Officer has instructed all Accountable Officers to spend within the reduced levels of growth in 2024 to ensure successful delivery of the savings in 2025. It is anticipated that these amounts will be removed from departments and moved into the Central Reserve. No formal decisions for onward allocation of the amount from the reserve have been made, although the table in part a) shows where there are pressures in departments, in particular in Health, that will need to be addressed.