Efficiency Savings

Background

Against a backdrop of budget pressures and ambitious Government plans, the States Assembly agreed in 2019 that the Council of Ministers ‘bring forward detailed proposals each year, to be included as a separate paragraph within the Government Plan proposition, seeking the Assembly’s specific endorsement of each of the efficiencies contained in the Government Plan’.    

The Efficiencies Plan 2020-23 and subsequent Government Plans have set out the Government’s approach to the delivery of efficiencies and targets for the achievement of efficiency savings.  In total, a goal of £120 million of savings has been set across the period 2020 to 2026. 

Scope

My review has focussed on the effectiveness of the Efficiencies and Rebalancing Programmes within the States of Jersey including in non-ministerial departments.  It has covered the establishment and operation of the Efficiencies Programme from 2019 to April 2020 and the Rebalancing Programme from April 2020 to May 2022. 

The review has evaluated:  

• the definition and measurement of efficiency savings and rebalancing measures by the States of Jersey  
• the effectiveness of the overall management of the Efficiencies and Rebalancing Programmes, including the: 

• design of the programme  
• administration of the programme  
• support provided to States departments  
• oversight of the programme; and  
• internal monitoring and reporting of the programme 

• the effectiveness of the operation of the Efficiencies and Rebalancing Programmes at departmental level, including the:  

• identification and design of efficiency and rebalancing initiatives by a sample of States departments  
• implementation arrangements for a sample of individual efficiency and rebalancing initiatives; and  
• monitoring and reporting arrangements at departmental level; and  

• the effectiveness of the public reporting of performance against efficiency savings and rebalancing targets.  

The review has not considered arrangements in States owned and States established entities as these are outside the scope of the Government Plan and the Efficiencies Plan.  

Conclusions

The States of Jersey’s plan to implement an Efficiencies Programme from 2020 was irrevocably interrupted by the impact of the emerging COVID-19 pandemic.  During 2020, the Efficiencies Programme was replaced by the Rebalancing Programme.  However, this Rebalancing Programme has not delivered all of the recurring benefits envisaged in the original Efficiencies Plan. 

The Value for Money Programme currently being established as part of the Government Plan 2023-26 emphasises the opportunity to re-focus on value for money.  This consideration of economy, efficiency and effectiveness provides an opportunity to establish new programme governance arrangements and an appropriate supporting culture shift.