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Review: Proposed Budget 2025 - 2028 Review - Health and Social Security Panel

Committee/Panel: Health and Social Security Panel
Launch Date: 10 September 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 will be requesting views and comments from targeted stakeholders and members of the public to inform its review. The Panel will also be questioning the Minister for Health and Social Services and Minister for Social Security in public hearings during September/October. The Panel intends to report on its findings ahead of the States' debate on the Proposition scheduled for 26th November 2024.

About

The Proposed Budget 2025-28 [P.51/2024] (previously entitled 'Government Plan'), was lodged on 2nd August 2024 for States debate on 26 November 2024. The presentation of the Financial Annex to the Proposed Budget 2025-28 [R.133/2024] was presented on 13 August 2024.

The Proposed Budget, the Common Strategic Policy 2024-2026 [R.115/2024]  and Departments' Business Plans 2024 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. It is aligned with the long-term vision set out in the Future Jersey Report and 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
  13. Meet the Island's commitments to address the climate emergency through the implementation of Cabon Neutral Roadmap.
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
  • 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 under the Health and Social Security Panel's remit which the Budget 2025-28 is seeking approval for are:

  • Health Insurance Fund
  • Long Term Care Fund
  • Social Security Fund
  • Social Security Reserve Fund.

Health Insurance Fund:

The Health Insurance Fund receives allocations from Social Security contributions from employers and working-age adults and supports the wellbeing of Islanders by subsidising GP visits, the cost of prescriptions and other primary care services.

Social Security Fund

The Social Security Fund receives allocations from Social Security contributions from employers and working-age adults and an annual States Grant. The Fund supports the wellbeing of Islanders by providing old age pensions and a range of working age benefits.

Social Security (Reserve) Fund

The Social Security (Reserve) Fund holds the balances built up in the Social Security Fund and is critical in managing the impact of an ageing population on future pension costs.

Long-Term Care Fund

The Long-Term Care Fund provides universal and means-tested benefits to individuals with long-term care needs and is funded through a central grant from general revenues and income-related contributions from income taxpayers.

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. For a list of new revenue expenditure growth and capital and other projects allocated to the Health and Social Security Panel for this review, please see below.

Project-Allocations-Proposed-Budget-2025-2028

Terms of reference

1.     To review components of the Proposed Budget 2025-2028 Proposition [P.51/2024] which are relevant to the Health and Social Security 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:

a. Health Insurance Fund

b. Long Term Care Fund

c. Social Security Fund

d. Social Security Reserve Fund.