Proposed budget criticised for 'short-term fixes'

The Government of Jersey's proposed budget has been criticised for offering "short-term fixes" and "no long-term thinking".

Deputy Helen Miles, the head of the Corporate Services Scrutiny Panel, questioned how plans would be funded after the panel published its review of the financial statement.

She also criticised the government's decision to reduce the grant to the social security fund so more money was available for day-to-day spending.

Treasury and Exchequer said it would respond to the panel's commends in due course.

Deputy Miles said: "This government has announced a budget that they say is based on discipline, restraint and sustainability - actually what we are seeing is a budget predicated on short-term fixes and very little long-term thinking."

She said the panel echoed the views of the Fiscal Policy Panel, which last month reported the government was spending more than it was earning.

In its proposed budget, the government said given the "pressing need" to invest in health and children they "propose a temporary adjustment to the States Grant to the Social Security Fund for 2026-2029, which will fund both ongoing revenue and capital".

"This avoids the need to raise new taxation or make substantial expenditure savings in the long term," it said.

The Social Security Fund is a reserve established to provide pensions and other state benefits to residents.

It is financed through contributions from employers, individuals and a government grant.

Deputy Miles said the government had not taken the necessary steps to ensure this was the right decision.

"We would have preferred to see a full actuarial review so we actually had some evidence about the health of that fund before decisions were made to use that fund to fund future spending," she said.

The Corporate Services Scrutiny Panel said "despite well-recognised pressures with the health system" the budget "does not set out concrete measures to urgently address them, relying instead on longer term work to develop a sustainable funding model".

If the budget is approved by the States Assembly, the health department will be given £381m in 2026, up from £322m in 2025.

In his foreword to the proposal, Chief Minister Lyndon Farnham said: "Significant funding is being allocated to modern healthcare facilities, with greater focus on preventative care and digital health advancements."

Deputy Miles said the panel needed evidence on where health funding was going as well as its plans for financial recovery.

Treasury and Exchequer said in a statement: "We acknowledge the publication of the Corporate Services Panel's review of the proposed budget.

"The government will consider the panel's comments and recommendations and will respond in due course."

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