Finance Law Delegation Report for the six-month period to 30th June 2025
This content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments. Please see the PDF for the official version of the document.
STATES OF JERSEY
FINANCE LAW DELEGATION REPORT FOR THE SIX-MONTH PERIOD TO 30 JUNE 2025
Presented to the States on 29th August 2025 by the Minister for Treasury and Resources
STATES GREFFE
2025 R.130
REPORT
Summary:
The purpose of this report is to satisfy a requirement of the Public Finances (Jersey) Law 2019 for the Minister to report to the States Assembly, twice yearly, decisions taken by the Minister under certain Articles of that Law. Details of such decisions are set out in the body of this report. In most cases these decisions vary the amounts for heads of expenditure approved by the Assembly in the Government Plan.
In summary, during the six-month period ending on 30 June 2025 the Minister or Treasurer (acting under delegation from the Minister) approved the following:
• Eight transfers between approved heads of expenditure totalling £10 million
• Up to £25.5 million of unspent funding from departments, projects and Reserves was transferred to 2025 Reserves at the end of 2024. £9.1 million was subsequently reallocated from Reserves to other Heads of Expenditure in 2025
• One transfer of major project expenditure approval to the following year, totalling £45.1 million (from 2024 to 2025 - New Healthcare Facilities Programme)
• Eight uses of additional departmental income above that included in the Government Plan, totalling up to £4.78 million
• Eleven allocations from Central Reserves made in 2025 relating to 2024 totalling up to £50.3 million. Of these:
o Up to £2.9 million was from the Court and Case Costs Smoothing Reserve to support ongoing financial commitments in Non-Ministerial departments in 2024
o up to £28.8 million was allocated to cover non-pay cost pressures and addition provisions in Health and Care Jersey in 2024
o up to £3.1 million was allocated to fund the costs of continued response to major incidents in 2024
o up to £14.6 million was allocated to re-align 2024 capital budgets with updated cashflow forecasts and revised political priorities (£9.5 million from Central Reserves and £5.1 million from the Reserve for Central Risk and Inflation)
o up to £581,000 was to fund other miscellaneous spending pressures in 2024
o up to £370,000 were final year-end allocations to regularise budget positions in 2024
• Four allocations from Central Reserves made in 2025 relating to 2025 totalling up to £39 million. Of these:
- up to £27.9 million was to fund 2025 pay awards
- up to £6.1 million (from Reserve for Central Risk and Inflation) was to support Major Projects and other Projects in 2025
- up to £3 million was transferred to support departmental revenue budgets in 2025
- up to £2 million was allocated to the First Step Assisted Home Ownership Pilot Scheme
Approvals in the period are detailed below.
- The administration of the public finances of Jersey
In accordance with the Public Finances (Jersey) Law 2019 ("the Law") certain matters are required to be reported to the States Assembly twice yearly by the Minister for Treasury and Resources ("the Minister").
The Public Finances Manual requires that this report includes a list of all letters of comfort issued during the preceding six-month period. A letter of comfort from the Minister for Treasury and Resources confirms to an Accountable Officer that additional funding will be allocated from Reserves in that financial year if it appears that the approved head of expenditure may be exceeded.
This report summarises all decisions made, and letters of comfort issued during the six-month period to 30 June 2025. Where decisions have not previously been published, this is due to one of two reasons -
• The decisions were exempted under the Freedom of Information (Jersey) Law 2011; or
• The decisions were taken by the Treasurer of the States under delegated authority from the Minister
- Reporting on decisions
The areas of administration which are required to be reported on are as follows:
- each function undertaken, within the applicable 6-month period under any of Articles 18 to 21, 24 and 26 to 28; and
- each direction given, within the applicable 6-month period by the Minister under Article 15(3) with respect to the amounts appropriated for a reserve head of expenditure.
Article 18 relates to transfers between heads of expenditure.
Article 19 relates to transfers to the following year's reserve.
Article 20 relates to transfers of major project amounts to the following year. Article 21 relates to the power to allocate excess income.
Article 24 relates to emergency expenditure. Article 26 relates to financing (borrowing). Article 27 relates to loans.
Article 28 relates to guarantees and indemnities.
There were no approvals in the period under Article 24, 26 and 27. Other approvals are detailed below.
- Transfers between heads of expenditure under Article 18.
NB A list of abbreviations used can be found at the end of this report.
Where Ministerial Decisions were public the full decisions can be read on www.gov.je.
Head of expenditure | Amount £ | Purpose | |
From | To | ||
CLS (now ESSH) | T&E | Up to 56,000 | A transfer of the Cashier function improving administrative efficiency and central oversight while maintaining overall budget integrity. MD-TR-2025-0033 |
T&DS | CO | Up to 359,000 | Recurring transfer. This budget transfer brings together the Central Freedom of Information and privacy functions. It will aid operational efficiency and processing speed, and the sharing and application of expertise. MD-TR-2025-103 |
Infrastructure | Road Safety Improvements | Up to 1,300,000 | This is a redirection of usage of the Jersey Car Parking financial return, after funding applicable revenue expense on transport initiatives. MD-TR-2025-151 |
Environment | Infrastructure | Up to 543,000 | This transfer represents the budget and staff support of the Office of the Chief Officer (ODG) team. MD-TR-2025-170 |
CLS (now ESSH) | Infrastructure | Up to 31,000 net income | Recurring transfer. The purpose was for the Crematorium service to come under the Technical Support Services team of Operations and Transport who will be responsible for line management and |
|
|
|
| operational support and also have the expertise and technical support teams necessary to deal with technical issues that may arise with the cremator and associated plant. The amount includes transfer of expenditure budget of £474,000 and income budget of £505,000. MD-TR-2025-241 |
CO |
| CLS (now ESSH) | Up to 220,000 | Recurring transfer. This transfer relates to the operation of the International Cultural Centre (ICC). It will fund support staff and associated costs. A proportion of the funds will be used to continue public- facing activity to highlight ICC services and attract less- reachable communities to the service provision. MD-TR-2025-265 |
CO |
| Infrastructure | Up to 102,000 | Recurring transfer. This transfer supports a new communications approach launched in 2024, shifting from traditional public relations to more direct, service-focused engagement and reallocates permanent communications staff to Infrastructure, where their support is most needed. MD-TR-2025-299 |
CO |
| HCS (now HCJ) – see table 1* below | Up to 7,411,000 | The transfer was to ensure that current departmental priorities remain properly funded. MD-TR-2025-332 |
- Transfers of unspent 2024 approvals to the following year's Reserve under Article 19.
From Head of expenditure | Amount £ | Purpose |
Various Heads of Expenditure | Up t 25,500,00 | o The transfer of unspent 202 0funding to Reserves to maintain th following allocations: • Up to £6.1 million to the Reserve for Central Risk and Inflation to support transfers to projects from 2024 to 2025 • Up to £3.0 million to the Central Reserve to support transfers to departmental revenue heads of expenditure in 2025 • Up to £16.4 million (remaining funds) to the Central Reserve to provide funding to meet unavoidable pressures in 2025 MD-TR-2025-230 |
- Transfers of Major Project heads of expenditure to the following year under Article 20
Head of expenditure | Amount £ |
New Healthcare Facilities Programme (MD-TR-2025- 230) | Up to 45,100,000 |
- Approvals of the allocation of excess income under Article 21. Excess income in this regard is income over and above 10% (up to a maximum of £100,000) of the relevant departmental income estimates in the Government Plan (Budget) 2025-2028.
Head of |
|
|
expenditure | Amount £ | Purpose |
|
|
|
CYPES | Up to 169,000 | Use of additional income from fee increases for fee-paying provided schools – Jersey College for Girls (JCG) and Jersey College Preparatory School (JCP). MD-TR-2025-235 |
CYPES | Up to 172,000 | Use of additional income from fee increases for fee-paying provided schools – Victoria College (VC) and Victoria College Preparatory School (VCP). MD-TR-2025-236 |
Infrastructure | Up to 2,413,600 | Use of additional income from several sources, including insurance claims related to property damage caused by Storm Ciarán, and higher than expected tipping income to address various financial needs, including costs incurred in responding to the aftermath of Storm Ciarán and a shortfall in sports-related income. MD-TR-2025-066 |
Environment | Up to 822,400 | Use of additional income from higher-than- anticipated revenue from planning applications, the newly introduced Rented Dwelling License scheme, and fines to cover the setup costs of the Rented Dwelling License scheme, which commenced in May 2024. MD-TR-2025-066 |
SoJP | Up to 58,000 | Use of additional rental income that was not accounted for in the original budget to address some of the financial pressures within the department. MD-TR-2025-066 |
Economy | Up to 850,000 | Use of additional income from an increase to the JFSC annual confirmation fee. The additional £30 per administered entity was applied to the budget of the Financial and Professional Services Directorate of the Department for the Economy. Additionally, these funds were allocated to |
|
| develop financial and professional services policy, including financial crime strategy and support the delivery of the work of the Ministerial International Competitiveness Working Group. TR-2025-TD008 |
HCJ | Up to 275,000 | Use of additional income from the increase in the 2025 Private Patient Tariff (from April 2025), to partly offset the inflation in staff and non-staff costs of providing these services to private patients. TR-2025-TD010 |
CYPES | Up to 25,000 | Use of additional income from the increases in Highlands College fees to partly cover the increasing costs of delivery, materials, and curriculum development to meet new industry standards. TR-2025-TD022 |
- Approvals of financing (borrowing) under Article 26
There were no new approvals under Article 26 in the six-month period. However, the following information is included in this report for completeness.
Overdraft
During the six months to 30 June 2025, there were no changes to the overdraft facility, which remained at £50 million, as approved by the Treasurer of the States (under delegated authority from the Minister).
Over the period, net drawdowns totalling £50 million were made from the Revolving Credit Facility (RCF) as additional overdraft funding, with the objective of minimising costs associated with short-term borrowing. These drawdowns were approved by the Treasurer of the States under delegated authority from the Minister. Including the initial £25 million drawn at the start of the period, a total of £75 million remained outstanding under the RCF as at 30 June 2025.
Revolving Credit Facility (approved by the States, but included for completeness)
In the six months to 30 June 2025, additional drawings of £6.9m were made from the RCF to bring the total drawn to fund the New Healthcare Facilities project to £78.1 million.
- Approvals of loans under Article 27
There were no new approvals under Article 27 in the six-month period. However, the following information is included in this report for completeness.
Two loans issued by the Minister remain outstanding - the loan to Caesarean Tennis Club and the loan to Blue Islands Limited. Neither loan has seen any drawdowns in the last 6 months.
As of the 30 June 2025 the outstanding balance of the Blue Islands Loan was £7,074,347.13.
As of the 30 June 2025 the outstanding balance of the Caesarean Tennis Club loan was £32,222.
Housing Development Fund (States approved but included for continuity from prior reports)
During the six-month period to 30 June 2025, no new loans were approved by the Minister for Treasury and Resources.
The net value of loans outstanding from the Housing Development Fund issued to Andium Homes Limited and Le Vaux Housing Trust are £227,615,777 and £1,236,700 respectively.
- Approvals of guarantees under Article 28
Under the Public Finances (Jersey) Law 2019 (PFL'), paragraph 28, the Minister may provide financial guarantees not exceeding £3 million per annum or £20 million in total.
No further guarantees or indemnities have been issued by the Minister over the period to 30 June 2025.
The following information is included in this report for completeness.
- Jersey Student Loan Scheme
During the six-month period to 30 June 2025, no new loans were guaranteed by the States under the Jersey Student Loan Scheme, which provided financial guarantees to four banks. The Scheme closed to new loans in 2018.
P53/2007 (Student Loans for higher education – guarantees) was debated by the States Assembly on the 6 June 2007 and a maximum outstanding limit of £10 million for an unlimited time period was approved. As at 30 June 2025 there were 78 loans outstanding with a balance of £126,088.
- Disruption Loan Guarantee Scheme (Covid)
This scheme was introduced alongside other measures to assist businesses as part of Covid support and allowed Government to guarantee loans to businesses
from banks. It was not extended after 31 December 2021, therefore no new applications have been made, nor guarantees granted since that date.
Whilst £4.3 million of facilities had at one stage or another been approved, by 30 June 2025, 19 facilities remained active. These facilities had a total facility value of £0.9 million at their respective dates of award. At as 30 June 2025, reflecting repayments made in the period to the year's end, the remaining value of guarantee exposure from these facilities (including accrued interest) is £0.2 million.
8. Allocations from the Reserve under Article 15(3)
Further information on the Minister's policy for the types of allocation from the Reserve is contained in "Procedures for allocations from the Reserve", published as R.76/2022.
From | To | £ | Purpose |
Relating to 2024 | |||
Central Reserve (Market Smoothing Reserve) | Infrastructure | Up to 387,250 | These funds cover the costs associated with maintenance works that were carried out at the Central Markets during the year. (MD-TR-2025-066) |
Central Reserve (Court and Case Costs Smoothing Reserve) | LOD | Up to 1,952,000 | To support ongoing financial commitments during the year. (MD-TR- 2025-066) |
Central Reserve (Court and Case Costs Smoothing Reserve) | SoJP | Up to 686,000 | To support ongoing financial commitments during the year. (MD-TR-2025-066) |
Central Reserve (Court and Case Costs Smoothing Reserve) | Bailiff 's Chambers | Up to 273,865 | To support ongoing financial commitments during the year. (MD-TR-2025-066) |
Central Reserves | HCS (now HCJ) | Up to 28,844,000 | To cover non-pay cost pressures and addition provisions in the department during the year. (MD-TR-2025-066) |
Central Reserves | Infrastructure | Up to 1,661,000 | To cover unfunded cost pressures in 2024, primarily stemming from the aftermath of Storm Ciarán |
|
|
| and other financial pressures. (MD-TR-2025-066) |
Central Reserves | Environment | Up to 1,404,550 | To cover cost pressures in 2024, largely due to the ongoing impact of Storm Ciarán and additional financial pressures. (MD-TR-2025-066) |
Central Reserves | Bailiff 's Chambers | Up to 193,800 | To cover financial pressures that could not be factored prior to the beginning of the financial year and attracted high public expectation as well as being affected by factors beyond the department's control. These include events like Liberation Day, D-Day 80 and the Royal Visit. (MD-TR-2025-066) |
Central Reserves | Various Heads of Expenditure - see table *2 below | Up to 9,512,800 | To re-align capital budgets with updated cashflow forecasts and revised political priorities. (MD-TR-2025-066) |
Reserve for Central Risk and Inflation | Various Heads of Expenditure - see table *3 below | Up to 5,072,400 | To re-align capital budgets with updated cashflow forecasts and revised political priorities. (MD-TR-2025-066) |
Central Reserve | Various Heads of Expenditure – see table *4 below | Up to 370,000 | Final 2024 year-end allocations to regularise budget positions. (MD-TR-2025-230) |
Relating to 2025 | |||
Central Reserve (Pay award inflation) | Various Heads of Expenditure -– see table *5 below | Up to 27,933,000 | Pay Award 2025 for various pay groups. This comprises a consolidated 4% increase for all pay groups excluding Junior Doctors. (MD-TR-2025-046) |
Reserve for Central Risk and Inflation | Various Project Heads of Expenditure – see table *6 below | Up to 6,100,000 | To support Major Projects and other Projects in 2025. (MD-TR-2025-230) |
Central Reserve | Various Departmental Heads of Expenditure – see table *7 below | Up to 3,000,000 | Transfers to support departmental revenue budgets. (MD-TR-2025-230) |
Central Reserve | CO | Up to 2,000,000 | The First Step assisted home ownership pilot scheme has been extended by the Minister for Housing and the Council of Ministers through the Government Plan/ Budget 2025-28. This is the additional funding for the scheme to provide further support to first time buyers to help make home ownership achievable for those struggling to get on the property ladder. (MD-TR-2025-328) |
*1 - The transfer of expenditure budget from the Cabinet Office (CO) head of expenditure to the Health and Community Services (HCS) (now Health and Care Jersey) head of expenditure (Article 18). MD-TR-2025-332
Service Area | 2025 (£) |
Public Health | 6,868,000 |
Strategic Health Policy | 543,000 |
Total | 7,411,000 |
*2 - Allocation from the Central Reserves for Capital Reprioritisation in 2024. MD- TR-2025-066
HoE existing budget reprofiled | Amountup to £ |
Jersey Opera House (Major Project) (M) | 6,202,600 |
Sewage Treatment Works (M) | 1,348,200 |
Integrated Technology Solution R1 & R2 (M) | 920,200 |
Elizabeth Castle | 779,500 |
Replacement Assets HCS | 246,400 |
Aerial Ladder Platform | 15,900 |
Total | 9,512,800 |
*3 - Allocation from the Reserve for Central Risk and Inflation for Capital Reprioritisation.
MD-TR-2025-066
HoE budget Increase/new allocation | Amountup to £ |
Office Modernisation | 2,070,500 |
Major Refurbishment and Upgrades | 1,200,900 |
In-Patient Support Services | 749,000 |
Property Dilapidation | 446,100 |
Health Service Improvement Programme | 294,600 |
Feasibility | 248,300 |
New School and Education Developments | 63,000 |
Total | 5,072,400 |
*4 - Final 2024 year-end allocations. MD-TR-2025-230
Head of Expenditure | Department | Amount up to £ |
Major Refurbishment and Upgrades | INF | 335,500 |
Economic Development, Tourism, Sports & Culture | EDTSC | 31,000 |
Sewage Treatment Works | INF | 3,000 |
Office Modernisation | INF | 500 |
Total |
| 370,000 |
*5 - Pay Award 2025 for various pay groups. MD-TR-2025-046
Head of Expenditure (HoE) | Amount up to £ |
Cabinet Office | 853,000 |
Technology and Digital Services | 771,000 |
People Services | 461,000 |
Education and Lifelong Learning | 6,128,000 |
Children and Families | 1,568,000 |
Customer and Local Services | 745,000 |
Infrastructure | 1,394,000 |
Environment | 601,000 |
Health and Community Services | 9,727,000 |
Justice and Home Affairs | 1,549,000 |
States of Jersey Police | 1,102,000 |
Ministry of External Relations | 91,000 |
Economic Development, Tourism, Sport & Culture | 204,000 |
Financial Services | 171,000 |
Treasury and Exchequer | 1,255,000 |
Departmental Total | 26,620,000 |
Bailiff s Chambers | 107,000 |
Judicial Greffe | 186,000 |
Law Officers' Department | 486,000 |
Office of the Lieutenant Governor | 33,000 |
Official Analyst | 22,000 |
Probation | 117,000 |
Viscount's Department | 110,000 |
States Assembly | 252,000 |
Non-Ministerial Total | 1,313,000 |
Total | 27,933,000 |
* 6 - Transfers to support Major Projects and Other Projects in 2025. MD-TR-2025- 230
Head of Expenditure | Sponsor Department | Amount up to £ |
Major Projects |
|
|
Learning Difficulties - Specialist Accommodation | HCJ | 697,000 |
Office Modernisation | INF | 520,000 |
Sewage Treatment Works | INF | 407,000 |
Ambulance, Fire & Rescue Headquarters | JHA | 114,000 |
Integrated Technology Solution | DS | 404,000 |
Liquid Waste Key Infrastructure | INF | 85,000 |
Subtotal |
| 2,227,000 |
Other Projects |
|
|
Dewberry House – Sexual Assault Referral Centre1 | SoJP | 1,638,000 |
Prison Improvement Works1 | JHA | 1,010,000 |
Other I&E Estate Projects | INF | 609,000 |
Firearms Range1 | SoJP | 238,000 |
Elizabeth Castle | EDTSC | 221,000 |
Regulation Improvement to Digital Assets | ENV | 133,000 |
Automatic Electoral Registration | SA | 20,000 |
Subtotal |
| 3,869,000 |
Total |
| 6,096,000 |
*7 - Transfer to departmental revenue budgets in 2025. MD-TR-2025-230
Initiatives | Head of Expenditure | Up to £ |
Major Incidents | SoJP | 1,000,000 |
Rheumatology Review | HCS | 1,000,000 |
Major Incidents Recovery and Resilience | JHA | 666,000 |
Firefighters Arbitration Agreements | PS | 290,000 |
Total |
| 2,956,000 |
3. Letters of Comfort
A letter of comfort from the Minister for Treasury and Resources confirms to an Accountable Officer that additional funding will be allocated in that financial year if it appears that the approved head of expenditure may be exceeded, even after appropriate actions have been taken to control spending levels, or if urgent funding is required. The Minister decided, when approving the relevant Public Finances Manual section, that a list of these decisions should be published twice-yearly in this report. Letters of comfort provide temporary assurance, pending preparation of full business cases, to Accountable Officers so that necessary expenditure can continue. Budgets are not formally increased until such time as an allocation of funding is made (for example from Reserves) under the Minister's powers in the Public Finances Law.
There were two Letters of Comfort issued during the six-month period to 30th June 2025.
Reference number | Department | Subject/ Pressure | Maximum amount £ |
LOC-2025-33 | I&E | Funding for Water Quality and Safety Programme | 300,000 |
LOC-2025-34 | T&E | Overdraft Costs, including additional temporary staff in Debt Collection | 4,100,000 |
Minister for Treasury and Resources August 2025
Abbreviations
CLS Customer and Local Services (now ESSH)
CO Cabinet Office
CYPES Children, Young People, Education and Skills EDTSC Economic Development, Tourism, Sport and Culture ENV Environment
ESSH Employment, Social Security and Housing
HCJ Health and Care Jersey
HCS Health and Community Services (now HCJ)
I&E Infrastructure and Environment
INF Infrastructure
JHA Justice and Home Affairs
LOD Law Offices Department
PS People Services
SA States Assembly
SoJP States of Jersey Police
T&E Treasury and Exchequer
T&DS Technology and Digital Services