A DISCLOSURE in the States Assembly that led to today’s confirmation that departments are facing total expenditure reductions of £6.5m. are likely to have caught senior officials at Frossard House rather on the hop.

The reason is that a memorandum from the chief executive to his senior officers was an internal document designed to give them some guidance on planning next year’s budgets – it was not designed to be forwarded immediately to politicians.

That it was – and the rather negative reaction it triggered – indicates how far is left to travel before departments collectively realise that the ‘profligate’ days identified by Tribal Helm in 2009 really are in the past.

And what the memo represents is a two-fold desire by Treasury and Resources to move

towards more businesslike budgeting, where departments know what they have to achieve and take ownership of that, and ensuring that the Financial Transformation Programme target of at least £31m. saved in five years is achieved.

With three years to go and some of the cost-saving projects being longer term, T&R is suggesting that part of those reductions is delivered through next year’s budget by encouraging immediate efficiency gains.

And while that means a cut, it represents just 1.8% of this year’s spending. For many private sector businesses, putting together a budget with a cash reduction of less than 2% would be a doddle – especially since pay rises have already been factored in for the States.

In addition, T&R’s proposed action is also aimed at getting departments to think differently. The Law Officers, for instance, are facing a £20,000 reduction. But since the average salary in the department last year was in excess of £87,000, not replacing a leaver for three months would more than provide the saving.

From the taxpayer’s perspective, this downward pressure is welcome and appears – finally – to acknowledge that there was a pact entered into when government decided to introduce zero-10: the pain of a deficit would be shared by islanders and the States.

With a general election fast approaching, it is a pledge that both sides should keep in mind.