Jersey’s government has approved the Budget for 2026, signaling a decisive shift towards downsizing the public sector. During a four-day debate, Treasury Minister Deputy Elaine Millar announced that concrete proposals to address the growing public sector expenses will be presented to States Members in early March 2024. As fiscal pressures mount, the government is prioritizing sustainable spending practices.
In her address to the States Assembly, Millar stated, “This is the final budget of this government,” emphasizing the need for planned reductions to ensure that essential public services remain viable. Her comments reflect a commitment to manage public sector growth effectively while navigating the challenges ahead.
Calls for significant cuts emerged during the discussions. Deputy Sir Philip Bailhache proposed a mandate for the chief executive to implement a £100 million reduction in public service funding, alongside a 10% cut in the workforce across all departments. Responding to this, Millar assured that the chief executive already possesses the authority to “resize” the public service, indicating that the government is actively working on strategies to streamline operations.
As part of this initiative, recommendations will be shared at a workshop in February, focusing on recruitment restrictions, reducing management layers, and minimizing reliance on external consultants. Millar made it clear that the government would not support the establishment of new independent bodies, stating, “We are not going to keep creating structures and bodies that we simply cannot afford.”
The Budget debate reached its climax with remarks from Chief Minister Deputy Lyndon Farnham, who cautioned against treating Jersey like a larger jurisdiction. “We are spending like a big country… We are in danger of borrowing like a big country. We are a small island,” he remarked, underlining the need for fiscal responsibility.
During the debate, Deputy Inna Gardiner, chair of the Public Accounts Committee, expressed concerns about the government’s tendency to promise substantial changes without sufficient detail. She warned that Jersey risks a future of merely “managing decline” if decisive action is not taken.
Despite the contentious discussions, the Budget ultimately passed with a vote of 29 in favor, 10 against, and one abstention. Former Chief Minister Deputy Kristina Moore criticized the outcome as “hardly a strong endorsement,” while Sam Mézec, leader of Reform Jersey and Housing Minister, celebrated the Budget’s provisions as a victory for Islanders. He highlighted key measures that would provide tangible benefits, including 15 hours of free childcare weekly for two to three-year-olds, an expanded Pension Plus scheme, and a ‘back to school bonus’ for families.
The approval of the Budget marks a critical juncture for Jersey as it addresses fiscal challenges and public service sustainability. As the government prepares to implement these changes, the focus will remain on ensuring that essential services are preserved while adapting to the evolving economic landscape.
