Proposed Government Plan 2024-2027 A SUMMARY OF THE WORK UNDERTAKEN BY SCRUTINY PANELS

Corporate Services Scrutiny Panel

The Corporate Services Scrutiny Panel launched its review on 4th October 2023. The Panel’s focus has been, in the main, on reviewing the Proposition where relevant to the Panel’s remit in respect of the responsibilities for the Chief Minister and Minister for Treasury and Resources. However, consideration has also been given to any overarching themes as appropriately identified during the review process.

As part of its evidence gathering process, the Panel wrote directly to a number of targeted stakeholders for their views, and received several submissions.

A private meeting was held with the Jersey Hospitality Association and the Jersey Youth Parliament. The Panel also held a pop-up stand in St Helier to engage with members of the public. Public hearings were held with the Chief Minister and the Minister for Treasury and Resources.

The Panel also wrote to the Chief Minister and the Minister for Treasury and Resources on several occasions with additional written questions.

The Panel concluded that one year on from delivering the Government’s budget as part of a Government Programme, the Council of Ministers is content that the process is working well. The Panel observed that further design measures are being taken to deliver future Government Plans with improved focus. In this iteration of the Government Plan, the Panel was pleased to observe the inclusion of the ministerial mapping table in the Annex to the Government Plan and, in addition, the summary document – the Government Plan in Brief – produced alongside the Government Plan as a more helpful way in which to view the Government’s aims and actions for delivery. Also, the work to improve the core outcome indicators of the Performance Framework and the aspirations to utilise administrative data and data linkage opportunities to enhance statistical measures is encouraging to observe.

The Panel is of the opinion, however, that further enhancements can be made to future Government Plans, such as:

• The provision of progress updates through a mid-year progress report.
• The inclusion of narrative on continuing and business as usual projects.
• Transparency regarding the business cases for new Revenue Growth Allocations.
• The inclusion of the previous year’s funding figures for improved budget comparison.

The Panel remains concerned that the Government Plan continues to be inaccessible to members of the public, children and young people, notwithstanding the development of the summary document. The Panel is disappointed, despite its recommendations made the previous year to improve accessibility of the Government Plan to children and young people, that it appears this was not a focus of the Government. As such, Jersey’s youth were not engaged on the Government Plan and its process via a child-friendly version of the Government Plan, which, although promised as being under development, was not published alongside the Government Plan or at the time of presenting this report.

The Panel remains concerned regarding the implementation and monitoring of the Value for Money Programme. Considering that its concerns do not appear to have been addressed during 2023, nor within the Government Plan, the Panel has proposed an amendment to the Government Plan. Should the Panel’s amendment be adopted by the States Assembly, all future Government Plans would distinguish the specific areas and projects to which Value for Money savings are attached, include reporting on all Value for Money savings which were made within the duration of the previous Government Plan and identify and provide full details of the monitoring process for proposed savings.

Despite the current strength of recent Government Revenues, the Panel found that the Government, to date, has not committed to rebuilding the Stabilisation Fund and Strategic Reserve Fund, despite this being recommended by the FPP since 2021. Although the Government Plan seeks approval in 2024 for up to £25 million to be transferred to the Stabilisation Fund, subject to the availability of funds, this is not a commitment. The Panel emphasises that a renewed short-term strategy is now a necessity to replenish the Funds to appropriate levels. Consideration must be given to prioritising the allocation of unspent balances from paying off the Covid-19 debt early to replenish the Stabilisation Fund. The Panel urges the Government to also head the advice of the FPP to ringfence and transfer all Prior Year Basis receipts to the Strategic Reserve as they arise.

The Panel notes that the Government has taken measures to protect against the continuing inflationary pressures by including £70 million in the reserve for 2024. However, considering that global inflation is declining more slowly than previously expected and that elevated inflation remains an ongoing risk for Jersey and, in particular, is affecting the most disadvantaged of our society, the Panel emphasises the necessity for continued due process to ensure that those affected most by the cost-of-living and inflationary pressures are appropriately supported during this challenging time.

The Panel has presented a Scrutiny Report (S.R.4/2023). The Panel’s review has resulted in one Amendment (P.72/2023: Twelfth Amendment - Value for Money Savings), 45 Key Findings and 25 Recommendations. 11 of the Recommendations made are overarching and are supported by the other four Scrutiny Panels.

Economic and International Affairs Scrutiny Panel

Following agreement of its Terms of Reference and allocation of new revenue growth and capital projects for scrutiny, the Economic and International Affairs Panel review of the proposed Government Plan 2024-2027 has incorporated evidence gathering through targeted letters to key stakeholders and relevant Ministers, as well as holding public hearings with those Ministers.

The Panel wrote to key stakeholders requesting their views and published a call for evidence via social media channels:

The Panel held 1 public hearing with the Minister for External Relations as part of its review:

During the course of the review, the Panel wrote a number of letters to the Ministers for Economic Development, Tourism, Sport and Culture, External Relations, Infrastructure, Treasury and Resources and the Assistant Chief Minister:

The Panel has formed a comments paper detailing its findings, raising some concerns as to whether revenue programmes and capital projects are likely to ensure productive service delivery, drive economic productivity and ensure value for money. The Panel has therefore made 8 recommendations:

1. The Minister for Sustainable Economic Development should undertake a review of each Arm’s Length Organisation during the first half of 2024 with findings published prior to proposing to increase core grants to those organisations. These reviews should have clearly set Terms of Reference including analysis of governance arrangements, setting and meeting of Key Performance Indicators, and value for money including attributable, measurable and tangible impact upon the Island’s economy.
2. Notwithstanding Amendment 25 to the proposed Government Plan 2024-2027, the Minister for Treasury and Resources, in conjunction with the Minister for Sustainable Development, should evaluate means by which the Hospitality Sector can be better supported through taxation by the next government plan.
3. The Minister for Sustainable Development, in conjunction with the Council of Ministers, should evaluate means to provide budget measures for innovation and enterprise, such as tax deductions, short-term visit and foreign employment exemptions, across different sectors in the Island. Findings of this evaluation should be included in the next Government Plan.
4. By the debate of the proposed Government Plan 2024-2027, the Minister for Sustainable Economic Development or Minister for Treasury and Resources should provide further comfort to the Assembly as to the terms of the repayment of the transfer from the Technology Accelerator Fund (TAF) to the Consolidated Fund. The Minister/s should also provide an overview of the advice sought which underpinned the decision making.
5. By June 2024 the Minister for Sustainable Economic Development should clearly outline progress in the refurbishment of the Jersey Opera House and confirm if there is revenue expenditure requirement in 2025.
6. By the next Government Plan the Minister for External Relations should revisit the feasibility of operating a joint London Office with other Crown Dependencies in order to achieve previously identified savings whilst enabling greater cooperation with those jurisdictions.
7. By the next Government Plan the Assistant Chief Minister with Responsibility for Financial Services should identify the full funding requirement of the independent Financial Intelligence Unit, including premises cost, and indicate if this will require further Revenue Expenditure growth bids.
8. Noting the recently published Review of Sport and Physical Activity in Jersey, the Minister for Sustainable Economic Development and Council of Ministers should ensure a clear strategy for the Island’s sport provision is produced by the next Government Plan to enable accurate costing and forward planning.

As a result of its review the Panel has lodged 4 amendments to the Government Plan.

Amendment 25 and Amendment 26, which propose to freezing Alcohol and Fuel Duty in order to support the hospitality sector and wider economy. The Panel has also proposed that the Minister for Treasury and Resources should be requested to bring about a way of providing a lower alcohol duty for the hospitality sector or provide a rebate or similar measure to mitigate any future increases in Alcohol Duty.

Amendment 27 and Amendment 28, which propose that new revenue expenditure items “Jersey Business – Core Grant Funding” and “Implementation of Digital, Visitor Economy and Elite Sport Strategies” are held in reserve until business cases providing further evidence as to full costing, anticipated economic return, estimated impact upon GVA and tax benefit are agreed by the States Assembly.

Environment, Housing and Infrastructure Scrutiny Panel

The Environment, Housing and Infrastructure Panel agreed its review Terms of Reference and began the process of evidence gathering for the areas identified within its remit. A list of the new revenue growth and capital projects allocated to the Panel to scrutinise can be found on the Panel’s review page. In addition to the proposed new revenue growth and capital projects, the Panel has also considered the impact of the proposals on the Climate Emergency Fund.

As part of the evidence gathering process, the Panel held public hearings with the Ministers within its remit and invited written submissions from targeted key stakeholders.

Where further questions were generated from either the proposals contained within the Plan, or from the evidence gathered, the Panel posed these questions to Ministers either during the public hearings or by letter as written questions. All the evidence considered by the Panel can be found online, with exception to the full business cases which were provided to the Panel in confidence.

A recurring theme throughout the Panel’s review has been the need for longer-term financing for a number of key priority workstreams and projects. Namely, the Climate Emergency Fund; liquid waste charging; Shoreline Management Plan coastal adaptation projects; maintenance and investment in the Public Estate; and the water strategy.

The Panel intends to keep a watching brief throughout 2024 and would hope to see further progress made and some longer-term plans presented before the Assembly in time for the next Proposed Government Plan 2025-2028.

The Panel’s review has resulted in the following recommendations being made to Ministers:

1. The Minister for the Environment should work with the Minister for Treasury and Resources to continue to ensure that priority is given to delivering a long-term financing strategy for the Climate Emergency Fund in time for the lodging of the next Proposed Government Plan 2025-2028 in September 2024. Furthermore, a further progress update should be provided to update the States Assembly on progress made on both the delivery of the Carbon Neutral Roadmap and the financing strategy before the end of July 2024.
2. The Minister for the Environment should, in future Government Plans (or the Annex), provide a more detailed breakdown of proposed expenditure on initiatives to be funded by the Climate Emergency Fund for the following year. In a similar vein, detailed actual expenditure for previous years should also be published each year with a statement provided on how specific expenditure is achieving the most Value for Money.
3. The Minister for the Environment should work with the Minister for Treasury and Resources to prioritise a longer-term funding solution for the Water Strategy for inclusion in the next Proposed Government Plan 2025-2028.
4. The Minister for Housing and Communities should work with the Government of Jersey communications unit to establish a public awareness campaign throughout 2024 and beyond to ensure that the Housing Advice Service has more public exposure and so Islanders are better informed about the services it provides.
5. The Minister for Infrastructure should work with Jersey Property Holdings and the Minister for Treasury and Resources to prioritise a longer-term funding solution for ongoing maintenance and future investment in the Public Estate for inclusion in the next Proposed Government Plan 2025-2028.
6. The Minister for Infrastructure should work with the Minister for Treasury and Resources to prioritise a long-term funding model for waste charging. Key stakeholders and the public should be engaged with from an early stage and before any final proposals are brought to the States Assembly in time for the Proposed Government Plan 2025-2028.
7. The Minister for Infrastructure should work with the Minister for Treasury and Resources to explore longer-term funding solution(s) for the numerous coastal adaptation projects identified in the Shoreline Management Plan. Noting that several defence projects have been identified in the first epoch of the Plan as needing to be constructed by 2040, a long-term funding solution should be brought forward that enables work to start on these projects in sufficient time for these to be completed by 2040.

Health and Social Security Scrutiny Panel

The Health and Social Security Panel agreed Terms of Reference that were relevant to its remit and began the process of evidence gathering. The Panel requested full business cases for every proposed Revenue Expenditure Growth project and Capital Project that fell under the responsibility of the Minister for Health and Social Services and Minister for Social Security. A list of these new revenue programmes and capital projects can be found here.

In addition to new revenue expenditure growth and capital projects that fall under the remit of the two Ministers, the Panel’s remit also includes four States Funds: The Health Insurance Fund, the Social Security Fund, the Social Security (Reserve) Fund and the Long-Term Care Fund. As such, the Panel’s Terms of Reference 1(e) included the task of determining the impact of the Government Plans proposals on each of these Funds.

Following the lodging of the Government Plan and its Annex and the receipt of full business cases, the Panel wrote to both Ministers requesting additional information on several areas that were of particular interest to the Panel or where further clarification was required. Much of this clarification sought to determine whether the proposed funding for the new projects and programmes is appropriate, likely to have a positive impact on islanders and island life, and is value for money.

The Panel also held Public Hearings with both Ministers to question them on specific areas of the Government Plan that fell under their remits. Additionally, the Panel identified several key stakeholders that it wished to request written submissions from in relation to the funding proposals contained in the Government Plan. A link to the submission received from the Primary Care Board on 19th October 2023 can be found here.

The Panel’s review resulted in the following recommendations:

1. The Minister for Health and Social Services should endeavour to provide States Members with details regarding the vaccine scheme and the intentions of the requested funding from the Health Insurance Fund ahead of the debate of the Government Plan 2024-2027.
2. Ahead of the debate of the Government Plan 2024-2027, the Minister for Health and Social Services must provide details of how many existing public health staff the requested monies under the revenue expenditure growth “maintaining the public health and health protection funding” will fund.
3. The Minister for Health and Social Services should ensure that, going forward, all the relevant and vital information is provided to the Panel at the very beginning of its review to allow for a more thorough and accurate examination of the Government Plan proposals.
4. The Minister for Health and Social Services must ensure that funding is identified in 2024 to improve and enhance the breast cancer screening service.

Overall, the Panel has been frustrated with the lack of details available on a number of the projects contained within the Government Plan. Not only does this not allow for effective Scrutiny, which would enable the Panel to draw informed conclusions, but it also leaves States Members in a position where they are being asked to approve funding in the absence of essential information.