Committee 'savings' add up to spend £4m. more

Policy & Resources publishes its latest version of the report today, admitting that the Government Work Plan was ‘no longer deliverable’ in its previous state, with too many workstreams to resource through finance or people.

It said that States committees were ‘constructive’ in talking about priorities, but although they shaved off £750,000 from budgeted items for 2023, they also came back with a further £4.8m. to cover ‘emerging issues’ over the next two years.

P&R plans to test members on whether they agree these priorities in debate next month – and if they do, it will return with funding proposals for debate in September, along with plans to pay for the capital portfolio too.

‘There remains a sustained funding gap without a viable funding plan,’ it said.

‘The GWP is now more deliverable, but is demonstrably not affordable.’

Deputy Murray, who is leading on the GWP at P&R, said: ‘Our role is to coordinate the policy and strategy work of committees through this plan.

‘But it is the States Assembly that must decide if and how it funds this plan or accept that some of our established workstreams cannot be progressed, because we have some very pressing needs which must continue, not least of which is housing supply and affordability.

‘If necessary, P&R will recommend in September the suspension of some work to progress what it considers essential for the longer-term sustainability of the community.’

The work plan outlines what the extra £4m. would be needed for, including £500,000 for healthcare modelling over the next two years, an additional £1m. support per annum for the finance sector, additional funds of £925,000 needed for the dairy review, reduced funding for the Active 8 Plan for Sport and £200,000 for a Renewable Energy Commission.

Deputy Murray reiterated the high costs the States was facing in the post-pandemic, post-Brexit, Ukraine War-affected global economy.

This was alongside the rapidly growing demand for services, particularly in areas such as health care, driven by demographic changes with more people living longer and fewer working, compounded by a reducing birth rate.

P&R has said that public sector resources will continue to be severely overstretched with the deficit in public finances forecast to grow to £100m. per year, every year, in real terms, by 2040.