Proposed Budget Branded a ‘Short-Term Fix’ by Critics

Jersey’s proposed government budget has come under fire from scrutiny politicians, who have accused ministers of relying on short-term solutions while failing to set out a clear long-term financial strategy.

Deputy Helen Miles, chair of the Corporate Services Scrutiny Panel, raised concerns after the panel published its independent review of the Government’s financial plans. She questioned how key commitments would be funded in future years and warned that some decisions could store up problems for later.

One of the panel’s main criticisms focused on the Government’s plan to reduce the States grant to the Social Security Fund so that more money can be used for everyday spending. The fund exists to pay pensions and other benefits, and is supported by employer and employee contributions alongside government funding.

Deputy Miles said the panel was not convinced that the impact of this move had been properly assessed. She said an actuarial review of the fund should have been carried out before any decision was taken to draw on it to support future spending.

She added that the panel shared the concerns of the independent Fiscal Policy Panel, which recently warned that the Government is currently spending more than it earns. Deputy Miles said that, despite claims of financial discipline, the budget was built on “short-term fixes and very little long-term thinking”.

In the budget proposals, the Government said a temporary adjustment to the Social Security Fund grant between 2026 and 2029 was needed because of the “pressing need” to invest in health services and support for children. Ministers said this approach would avoid the need for tax rises or major spending cuts.

The scrutiny panel also highlighted concerns over health funding. While acknowledging well-known pressures on the health system, it said the budget did not spell out urgent measures to tackle them, instead pointing to longer-term work on a sustainable funding model.

If approved by the States Assembly, funding for Health and Community Services would rise to £381 million in 2026, up from £322 million in 2025. In his introduction to the proposals, Chief Minister Lyndon Farnham said significant investment would go into modern healthcare facilities, preventative care and digital health.

Deputy Miles said the panel wanted greater clarity on exactly how the extra health funding would be used and how the department planned to achieve financial recovery.

In response, Treasury and Exchequer said it noted the panel’s findings and would consider its comments and recommendations before responding in full at a later date.