The Government Plan seeks to bring together public income and spending against the context of the stated strategic priorities of Government. It is a rolling four-year plan but is brought back and updated each year to take account of changes in the Island's economic outlook.
Details of the Government Plan includes:
- Estimated income and expenditure of the Consolidated Fund
- Amounts to be internally transferred between States funds
- Efficiencies and re-balancing (value for money) proposals
- Any other proposed financing
- Additional revenue programmes and capital projects and their proposed costs
- Estimated income and expenditure from States trading operations to be paid into the States trading operations Fund
- Amounts to be appropriated from the Consolidated and States trading operations funds for the next financial year
- Estimated amounts in States funds at the start and finish of each financial year
Key Issues:- What is the impact of the Government Plan proposals on departmental budgets and staffing levels?
- Does the Government Plan align with the objectives of the Common Strategic Policy and aims of the Ministerial Plans?
- Are the proposed additional revenue programmes and capital projects appropriate and deliverable within the specified timeframe?
- Are the resources allocated to revenue programmes and capital projects sufficient and the best use of public funds?
Each Scrutiny Panel has been allocated a number of proposed additional revenue programmes and capital projects specific to its remit to scrutinise. For a list of programmes and projects allocated to the Health and Social Security Panel, please see the document under research. In addition, the three main funds under the Health and Social Security Panels are:
- Health Insurance Fund
- Long-Term Care Fund
- Social Security (Reserve) Fund
Health Insurance Fund
The Health Insurance Fund receives allocations from Social Security contributions from employers and working-age adults and supports the wellbeing of Islanders by subsidising GP visits, the cost of prescriptions and other primary care services. The table reflects the anticipated costs of current services over the period as they are presently provided for the Strategic Reserve Fund
Long-Term Care Fund
The Long-Term Care Fund provides universal and means-tested benefits to individuals with long-term care needs and is funded through a central grant from general revenues and income-related contributions from income taxpayers. The current contribution rate of 1.5% is expected to enable the balance on the Long-Term Care Fund to continue to increase throughout the period of the Government Plan.
It is anticipated that there will need to be further increases in the Long-Term Care contribution rate in future years as the number and proportion of older people with long term care needs is expected to increase. However, the transformation of health care services and the proposed introduction of the new Care Needs at Home Benefit are intended to reduce the number of individuals who will need a care home placement, through the provision of alternative care options and improved support at home and in the community.
These actions are expected to reduce the extent of future increases in Long-Term Care expenditure. The Long-Term Care Fund will be subject to a formal actuarial review that will commence in 2022 and be completed in early 2023. This will help inform a wider review into the operation of the fund, to ensure that it is providing the right support for Islanders.
Social Security (Reserve) Fund
The Social Security (Reserve) Fund holds the balances built up in the Social Security Fund and is critical in managing the impact of an ageing population on future pension costs. A transfer from the Reserve Fund of £89 million is estimated to be needed in 2023 to support the on-going payment of pensions and benefits in advance of the restoration of the States Grant in 2024.
The Panel has co-opted Deputy Howell for this Review.
Proposed Government Plan 2023-2026 [P.97/2022]
Proposed Government Plan 2023-2026: Annex [R.146/2022]
