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Review: Proposed Budget 2025 - 2028 Review - Corporate Services Panel

Committee/Panel: Corporate Services Panel
Launch Date: 19 August 2024 Close Date: To be advised
Submissions Deadline: To be advised Ministerial Response Date: To be advised
Review Status: Gathering evidence

The Panel has launched its review and is requesting views and comments from targeted stakeholders and members of the public to inform its review. The Panel will also be holding public review hearings with the Chief Minister and Minister for Treasury and Resources in October 2024. The Panel intends to report on its findings and recommendations ahead of the States' debate on the Proposition scheduled for 26th November 2024.

About

​The Proposed Budget 2025-28 [P.51/2024] was lodged on 2nd August 2024 for debate on 26th November 2024. The presentation of the Financial Annex to the Proposed Budget 2025-28 [R.133/2024] was presented on 13th August 2024 and provides further financial detail.

The Proposed Budget (previously entitled 'Government Plan'), the Common Strategic Policy 2024-2026 [R.115/2024]  and Departments' Business Plans  aim to link the Council of Ministers' high-level priorities with their delivery.

The Common Strategic Policy 2024-2026, which was approved by the States Assembly on 21st May 2024 defines thirteen strategic priorities for delivery over the next two years. This is aligned with the long-term vision set out in the Future Jersey Report and the ten Island Outcomes arising from it.

The thirteen priorities are:

  1. Extend nursery and childcare provision
  2. Provide nutritious school meals for every child in all States primary schools
  3. Increase the provision of lifelong learning and skills development
  4. Start building a new hospital at Overdale
  5. Reduce GP fees
  6. Implement the recommendations from the Violence Against Women and Girls Taskforce report
  7. Transition to a living wage
  8. Provide more affordable homes for Islanders and more confidence for the rented sector
  9. Keep Government fees, duties, and charges as low as possible to help Islanders with the cost of living in 2025
  10. Reduce red tape, enhance opportunities for business and strengthen Jersey's international reputation
  11. Deliver a plan to revitalise Town
  12. Reform the planning service to enable sustainable development in Jersey

The Budget

The Proposed Budget explains the financial context in which Ministerial priorities will be delivered and also outlines the financial approvals that Ministers are proposing to ensure that taxpayers' money is focused on delivering both their priorities and existing services, whilst ensuring the ongoing sustainability of Government and States' finances. It is a rolling four-year plan that is revised and updated each year to reflect changes in the Island's economic outlook.

The Public Finances (Jersey) Law 2019 requires the Council of Ministers to each financial year, prepare a government plan and lodge it in sufficient time for the States to debate and approve it before the start of the next financial year.

Details of the Proposed Budget include:

  • Estimated income and expenditure of the Consolidated Fund.
  • Amounts to be internally transferred between States Funds.
  • Any other proposed financing.
  • Revenue Expenditure Growth and Projects and their proposed costs.
  • Estimated income and expenditure from States Trading Operations to be paid into the States Trading Operations Fund.
  • Amounts to be appropriated from the Consolidated and States Trading Operations Funds for the next financial year.
  • Estimated amounts in States Funds at the start and finish of each financial year.
  • Borrowing and Debt Management Framework.

Key Issues to consider include:

  • Whether the Proposed Budget meets the requirements of the Public Finances (Jersey) Law 2019.
  • Whether the Proposed Budget is fiscally sound and economically sustainable.
  • Whether the Proposed Budget follows the advice of the Fiscal Policy Panel and Income Forecasting Group.
  • The impact of the Proposed Budget proposals on departmental budgets and staffing levels. 
  • Whether the Proposed Budget aligns with the objectives of the Common Strategic Policy to deliver on the priorities and aligns with Departments' Business Plans.
  • Whether the proposed Revenue Expenditure Growth and Projects are appropriate and deliverable within the timeframes specified. 
  • Whether the resources allocated to Revenue Expenditure Growth and Projects are sufficient and demonstrate the best use of public funds.

The main Funds for the Panel to review under its remit include:

  • Consolidated Fund
  • Strategic Reserve Fund
  • Stabilisation Fund

 

Each Scrutiny Panel has been allocated various revenue expenditure growth and capital and other projects specific to its remit to consider for their reviews of the Proposed Budget for 2025. The Corporate Services Scrutiny Panel will also review any overarching themes within the Proposed Budget. For a list of new revenue expenditure growth and capital and other projects allocated to the Corporate Services Panel for this review, please see the document published under Research.

 ​The Panel has co-opted Deputy Gardiner, Chair of the Public Accounts Committee, for this review.

Terms of reference

​1.  To review components of the Proposed Budget 2025-2028 Proposition [P.51/2024] which are relevant to the Corporate Services Scrutiny Panel to determine the following: 

a) The impact of the Budget proposals on departmental budgets,  savings and staffing levels. 

b) Whether the revenue expenditure growth, capital and other      projects are appropriate and likely to have a positive impact on  Islanders and Island life. 

c) How the proposed revenue expenditure growth, capital and other projects align with the Common Strategic Policy to deliver on the priorities, and in line with the Departments' Business Plans. 

d) Whether the resources allocated to revenue expenditure growth and capital and other projects are sufficient, ensure value for money and demonstrate best use of public funds. 

2. To assess the impact of the Budget proposals on the Consolidated Fund, Strategic Reserve Fund and Stabilisation Fund.

3.  To assess the expected impact on the ongoing delivery of public services, by Minister, through reprioritisation and rebalancing of Government finances.

Budget

  • To examine income raising, borrowing and debt management proposals.
  • To explore how spending will be funded.
  • To clarify how States expenditure has materially evolved.
  • To ascertain individual departmental budgets and their feasibility based on future spending.
  • To examine the deliverability of capital projects.
  • To consider rebalancing and borrowing plans being sufficient or excessive to meet stated aims.
  • To examine the use of the Revolving Credit Facility.

Financial, economic and growth forecasts

  • To examine the levels of income against expenditure.
  • To examine the assumptions made for the economic forecasts.
  • To explore the impact of the financial and economic forecasts in the Proposed Budget on the Stabilisation Fund.
  • To explore any continued impact of emergency incidents on the 'financial envelope'.

Design and implementation of the Budget

  • To assess reserves; their use, and how they are allocated.
  • To consider how the treatment of contingencies/reserves, or any other areas of non-routine proposals have evolved in respect of the Proposed Budget.
  • To consider the overall fiscal soundness of the Proposed Budget.
  • To consider gender-responsive budgeting of the Proposed Budget.