Health funding rises by almost £60m in latest budget
- markdarrenwilkinso
- Sep 16
- 2 min read
Health and education are set to receive the largest funding increases under the government’s 2026 budget proposals, unveiled on Tuesday.
The draft plans, which still require approval from the States Assembly, would see health spending rise by almost £60m and an additional £20m allocated to children, education and families.
Treasury Minister Deputy Elaine Millar said the uplift should help the health department avoid the overspending it has faced in recent years. The extra money is earmarked for preventative healthcare and investment in digital systems.
Under the plans, health spending would rise from £322m in 2025 to £381m in 2026.
“There is some more money going into health under this budget,” Millar said. “We will be putting more into preventative healthcare to help people stay healthier in the long term, and £8m into digital health to ensure services are modern and fit for purpose.”
She added that the uplift should reduce pressure on budgets in future years.
Free Nursery Hours from 2026
The children, families, education and lifelong learning department would see its budget rise to £246m, £20m more than last year. This includes £3m to fund free nursery care for two- and three-year-olds from January 2026.
Chief Minister Deputy Lyndon Farnham said the rollout would start with 15 hours per week during term time, with the aim of expanding provision as staffing and resources allow.
“It would have been nice to be able to provide full funding straight away,” he said. “But we have to work with the sector to make sure capacity is there.”
Infrastructure and Tax Changes
The government also plans to invest £1bn over the next four years in buildings, IT, infrastructure, and the new hospital project. Most of this will be covered by existing capital budgets, though some borrowing will be required for redevelopment works at Fort Regent.
Other proposals include raising the personal income tax threshold from £20,700 to £21,250, and cutting alcohol duty on draught beer.
