New way to deliver cuts is needed
IT WASN’T universally popular, and its effectiveness is still questioned, but at the time the Financial Transformation Plan was seen as a game-changer, a real culture-changer within government.
Now there are deputies openly talking about FTP II – the sequel.
As Policy & Resources gets to grips with the need to create a mini-Budget following the States’ decision to vote through £650m. of expenditure but not to fund it, various ideas are coming forward. Will the committee be able to create a package that is a mix of cuts and savings, tax-raising measures, the use of some of the diminishing reserves, and some borrowing?
None of those measures seem particularly appealing, palatable even. Tax-raising measures are easier said than done. The use of borrowing to fund day-to-day expenditure could be seen as fiscally irresponsible.
So what about those savings? The concept of FTP II would appear to fit the bill. As outlined in these pages earlier this week, anybody, especially P&R, trying to make savings and cuts on the hoof could be heading for trouble as a resistant committee takes the matter, in isolation, to the States, where it is agreed that the spending is essential.
We can see that challenge in P&R’s last-minute decision to cave in on the funding wanted for St James last week. If there are going to be cuts coming, they might need to delivered under a new wrapper.