Jersey's politicians agree 2026 Budget

Jersey's politicians have agreed how public money will be spent over the next three years following four days of debate in the States Assembly.

Ministers published their 2026 Budget plans in September, proposing cheaper pints in the pubs, more free nursery places and a new vaping tax.

The latter - a £2 per 10ml duty on vapes to tackle the growing trend of young people using e-cigarettes - was uncontested.

So too was putting 80 pence on a packet of 20 cigarettes and 1.7p on a litre of fuel, and a so-called 'tap relief' - a 5.4p cut in the duty on a pint in the pub to help the struggling hospitality sector - also passed.

The duty on canned drinks will increase, with an extra penny on 500ml of beer.

Parents of two and three year olds will get 15 hours a week funded nursery or childminder hours during term-time from January.

Workers won't pay tax on the first £21,250 of their income, with a £550 increase proposed in the income tax threshold.

A total £1 billion will be spent on capital programmes between 2026 and 2029, to renew key public assets.  Capital spending for 2026 will be £308m, including £174m for the new hospital.

An extra £12 million will go on preventative care and digital health initiatives.

In total, government spending on public services will run to £1.28bn in 2026, including £381m on Health and £246m on Education. 

Treasury Minister Deputy Elaine Millar called the a 'budget rooted in balance and responsibility'.

"As elected representatives, it is our duty to make some tough decisions, to find the best overall outcomes for islanders.'

However, backbenchers have voiced opposition to the levels of spending and borrowing, and the lack of saving.

Last month, independent economists who advise the government said the island needs to put more aside to protect it from potential economic shocks.

Read: Economists warn Jersey's government to save more money

Ministers faced 35 challenges to their plans, with backbench politicians and scrutiny panels lodging amendments.

Three were withdrawn during the debate, and Ministers accepted a further ten.  Four were passed with tweaks from the Council of Ministers.

The government was twice forced to concede, though, and reverse its planned budget cuts to the Environment Department and States of Jersey Police.

Environment department funding 

The government's proposed £650,000 cut to the Environment Department's budget was blocked.

The Environment, Housing and Infrastructure Scrutiny Panel argued its 2025 funding level should be restored, using reserves, to prevent threats to public health and safety.

Ministers backed down just ahead of the vote.

Police funding

Almost a quarter of a million pounds will be taken from the Health budget and given to Jersey Police.

Politicians agreed to redirect £240,000 of funding following a warning that the force was being stretched and public safety could be put at risk.

It will restore the £47,000 cut from the Digital Forensics Unit, and fund three officers for the Community Policing Team.

Last month, the Jersey Police Authority warned that underfunding in policing carried 'significant operational, reputational and social risks'.

Fort Regent

Plans to borrow £43 million for the first phase of Fort Regent's regeneration will go ahead.

Deputy Philip Bailhache wanted it removed from the Budget. He believes the project is one that Jersey cannot afford without raising taxes, calling it a 'colossal sum'.

"I don't think that it is satisfactory that so much uncertainty clings to a project that can only be financed through substantial borrowing."

But Chief Minister Lyndon Farnham urged colleagues to press on with the plans.

"Redeveloping Fort Regent is more than just about improving a building; it's about investing in our people, something that we haven't done in a long time."

The whole renovation of the leisure centre in St Helier will cost around £110 million.

READ: Fort Regent plans receive 'overwhelming' support

Free school meals

Ministers pledged to look at extending free school meals to more primary school children from low-income families.

They amended a proposal from Deputy Louise Doublet, who said it would save some households around £475 a year by not paying the £2.50 a day for a hot meal.

A review of the criteria for free meals will take place once the current pilot programme has concluded, with single-parent households and homeowners with a mortgage who would otherwise qualify for income support, being considered.

£670,000 for teaching Jerriais

A ring-fenced fund will be created within Jersey's Education Department's budget to promote and teach Jerriais.

A scrutiny panel demanded the change to the Council of Ministers' budget plans, saying Jersey's national language is not being given the priority it deserves.  The government accepted the proposal.

'Right-sizing' stamp duty relief

Homeowners with empty nests could see a one-off stamp duty holiday for moving into a property with fewer bedrooms.

The Council of Ministers accepted a request from Deputy Tom Coles to investigate the idea.

He thinks it will incentivise people to right-size and free up larger homes for young families.

Revitalising St Helier

St Helier could see a total of £1 million invested in its neighbourhoods over the next three years.

Politicians previously agreed on the priority to revitalise the town, and Deputy Inna Gardiner called for the commitment to be honoured in this year's budget.

Ministers agreed to reallocate £167,000 a year from the Infrastructure budget, to be matched by the Town Hall and allocated to the Neighbourhood Regeneration of St Helier for 2026, 2027, and 2028.

Medical cannabis loans

From 2026, only 10% of the money in the States' Agricultural Loans Scheme will be available to medical cannabis farmers.

Deputy Karen Wilson originally wanted them to be completely excluded from the funding.

However, Economic Development Minister Kirsten Morel amended this to allow for some of the total loan amount to be available to those who choose to grow medicinal cannabis.

"To cut off this loan's funding would therefore make it much harder for them to diversify and maintain the ongoing financial health of their overall farm, and it is for that reason primarily that I feel that it is important to maintain the door ajar for them."

Rejected 

The majority of challenges to Ministers' budget plans were defeated.

That included a request from Deputy Tom Coles to scrap the upper earnings limit for Social Security and Long Term Care contributions for people earning more than £317,000 a year.  It is estimated that it would generate an extra £17 million.

Reform Jersey leader Sam Mézec called it 'the stupidest rule in Jersey’s tax system' and said his party would 'keep fighting for this commonsense change'.

A new school's PE fund, bringing forward funding for redeveloping Le Squez Youth Centre, and cutting overall public spending by almost £90 million, was also thrown out.

An push to bring back Mortgage Interest Tax Relief failed too, as did a bid to reinstate £61,000 to the Children's Commissioner's budget.

States Members eventually voted 29 votes to 10 to approve the amended Budget, with 1 abstention.