1. 2012-2014 BUSINESS PLAN BRIEFING 15 JULY 2011 ST. HELIER TOWN HALL Presented by: SENATOR TERRY LE SUEUR – Chief Minister SENATOR PHILIP OZOUF – Treasury Minister LAURA ROWLEY – Treasurer of the States COUNCIL OF MINISTERS Embargoed until 00:01 Monday 18 July 2011

2. 2 Welcome and Introduction Chief Minister Purpose To brief States Members on the draft Business Plan, with particular emphasis on 2012. Treasurer of the States to set out:- –Economic and financial context. –Proposed spending in 2012. –What will be delivered. –How the books will be balanced. Minister for Treasury and Resources –2013 and 2014. –Summary. Question and Answer

3. 3 Welcome and Introduction Chief Minister Guiding Principles To deliver £65 million CSR savings. Fiscal prudence continues so as to deliver balanced budgets by 2013. This will enable us to deliver key services to Jersey people and build for the future.

4. 4 Welcome and Introduction Chief Minister Proposals Three-year proposals for spending limits –2012 department cash limits. –2013 and 2014 States indicative cash limits. –2012-2014 Capital Programme within spending limits. Legislation Programme for 2012

5. Draft Annual Business Plan 2012- 2014 Treasurer of the States Laura Rowley

6. 6 The Financial Context - Jersey has a strong and healthy balance sheet NO debt on the Balance Sheet –(apart from property leases from the 1990’s). Structural deficit being addressed. Medium Term Financial Planning proposed –to strengthen financial management.

7. 7 The Financial Context - Reminder of where we were in 2011 Budget

8. 8 Balancing the books by 2013 Year

9. 9 The Financial Context - How have things changed since the 2011 Budget Income has improved by £14 million at the end of 2010 –due to additional Income Tax collection of £15 million. Income Tax forecasts in early June confirm initial Business Plan forecasts. In 2011 £6 million income from the COCF is required to meet additional Court and Case Costs. Forecast is an ongoing £9 million improvement in States income from 2012.

10. 10 The Financial Context - How have things changed since the 2011 Budget

11. 11 What will the Business Plan deliver? - CSR Summary of progress Departments Financial delivery confidence is high for all departments but ESC is affected by P72/2011. Terms and Conditions On track to deliver £14 million by 2013. Procurement On track to deliver £6.5 million by 2013. (Council of Ministers is still committed to deliver £65 million savings)

12. 12 What will the Business Plan deliver? - Net CSR savings by department by 2013

13. 13 What are CoM proposing to spend in 2012? - Department and central allocations

14. 14 Balancing the books by 2013 - States Income

15. 15 Balancing the books by 2013

16. 16 What will the Business Plan deliver in 2012? - Investment in priority services (revenue) Real terms growth of £3.5m for Health and Social services. Almost £1m of funding to retain and recruit nurses. Additional funding for infrastructure and property maintenance. Over £0.5m of funding to continue skills and training initiatives beyond the fiscal stimulus. An additional £0.6m for tax policy and collection to increase revenues and compliance. Additional contingency of £4m for emerging pressures of Freedom of Information, HCAE Inquiry and Legal Aid.

17. 17 What are CoM proposing to spend in 2012? We may need to address emerging issues by providing an additional contingency Freedom of Information. Committee of Inquiry. Legal Aid. Other emerging issues. Proposal: Increase Central Reserve in 2012-2014 to provide additional contingency for emerging items.

18. 18 What are CoM proposing to spend in 2012? How are we dealing with the ESC savings shortfall (P72/2011 as amended)

19. 19 What are CoM proposing to spend in 2012? How are we dealing with the ESC savings shortfall (P72/2011 as amended)

20. 20 Summary - 2012 Business Plan We are in a very strong financial position going into 2012. The CoM are still committed to meeting the £65 million savings by 2013. And, we have effective plans in place to correct the deficit, and avoid future deficits through permanent changes to our processes.

21. Draft Annual Business Plan 2012- 2014 Treasury Minister - Senator Ozouf Proposals for 2013 and 2014

22. 22 Key Messages - 2012 Business Plan Commitment to deliver £65 million savings. Not a short-term plan – it is about cultural reform towards a 5-10 year strategy. Platform for economic growth and diversification. Investing in Health, infrastructure, skills and training and tax planning. A balanced and sustainable financial position.

23. 23 Balancing the books by 2013 - Proposals for 2013 and 2014

24. 24 What will the Business Plan deliver? - Investment in Capital Programme Over £6m to address the most urgent projects at the General Hospital. £0.5m advanced to accelerate the St. Martin’s school project to 2012. £3.6m for the Phillips Street Shaft project. £2m to deliver the Police HQ relocation. £11m for the review of the social housing programme. Almost £9m investment in infrastructure maintenance for roads, sewers and sea walls.

25. 25 How the books will be balanced by 2013 - Forecast of Fund balances

26. 26 2012 Business Plan and Budget - Timetable 15 July – Present Business Plan to States Members 18 July - Lodge Business Plan 2012 26 August - Deadline for Business Plan Amendments 13 September – States Debate Business Plan 2012 26 September - Present Budget 2012 to States Members 27 September – Lodge draft Budget 2012 19 October – Election Day 25 October - Deadline for Budget Amendments 8 November – States Debate Budget 2012

27. Draft Annual Business Plan 2012- 2014 Question and Answer

28. 2012-2014 BUSINESS PLAN BRIEFING 15 JULY 2011 ST. HELIER TOWN HALL Presented by: SENATOR TERRY LE SUEUR – Chief Minister SENATOR PHILIP OZOUF – Treasury Minister LAURA ROWLEY – Treasurer of the States COUNCIL OF MINISTERS Embargoed until 00:01 Monday 18 July 2011