The department faces cutbacks of �3.75m next year after politicians set the island's budget in the States.

Minister Peter Roffey said he could not rule out charging for some services. He also said the number of hospital beds might have to be reduced.

He said using charges over service cuts was the "lesser of two evils".

Resignation threat

Minister Roffey said: "There would be even bigger reductions if we weren't going to propose charges for things like radiology, pathology, maybe even the attendance of A&E.

"Now these would hit the lowest paid, and we really don't want to do that. But if it's a choice between cutting services and them just not being there when you are sick, or making a modest charge, then a charge is the lesser of two evils."

But Mr Roffey threatened resignation rather than cutting back on essential services.

He said that although he was willing to co-operate with Treasury and Resources, there is a limit to how far he would go to make savings.

Meanwhile, the charge for prescriptions in Guernsey and Alderney is set to go up at the beginning of next year.

From 1 January, prescription charges will increase to �2.50 per item.