States begin Budget debate

Treasury Minister Elaine Millar presenting the 2025 Budget.

Jersey's politicians will spend much of this week debating how public money is spent over the next three years.

The budget debate is underway in the States Assembly.

Government plans, published in August, include £1.2 billion delivering services next year, pumping an extra £31 million into health, and finding £710 million for a new acute hospital at Overdale.

The Chief Minister said his government's plans are 'a commitment to building a secure future'.

Presenting the Budget to the Chamber this morning (26 November), Deputy Elaine Millar said it was a 'robust, forward-looking financial plan'.

"This Budget lays the foundation for a resilient and prosperous Jersey.  Together we are shaping a future where Jersey remains fair, thriving and responsive to the needs of it's people'.

She said it includes measures to 'keep money in islanders' pockets'.

"We are increasing tax allowances and increasing thresholds.

"Additionally this Budget freezes duty on alcohol and fuel for 2025, a decision that supports both our local businesses and their customers.

Deputy Millar warned that slower growth in tax revenues meant government spending could not continue to grow at the rate it has in previous years, and said that the Budget would produce £30m in savings by 2028 without affecting frontline services.

Earlier in the sitting, the Chief Minister had told the Assembly:

"I don't think any Minister wants to impose cuts or make savings, and that is one of the reasons we find ourselves in this position.  For far to long, we have not checked that. We have allowed the cost of running the public sector to grow to a point where it is unsustainable."

Backbench politicians and scrutiny panels have submitted more than two dozen challenges to ministerial plans.  The Council of Ministers has accepted seven amendments.  The rest will be subject to debate and votes in the island's parliament this week.

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