Proposed Budget (Government Plan) 2026-2029 (P.70/2025): thirty-second amendment (P.70/2025 Amd.(32)) – comments. Environment Departmental Funding
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STATES OF JERSEY
PROPOSED BUDGET (GOVERNMENT PLAN) 2026-2029 (P.70/2025): THIRTY- SECOND AMENDMENT (P.70/2025 AMD.(32)) – COMMENTS
Presented to the States on 4th December 2025 by the Council of Ministers
STATES GREFFE
2025 P.70 Amd.(32) Com.
COMMENTS
This amendment seeks to reverse the share of savings allocated to the Environment department previously agreed by the Assembly. Ministers fully recognise the importance of both Jersey's natural environment and the work of the department in protecting it.
Nevertheless, it is clear that it is necessary to curb the growth in the public service. To achieve this ambition it is vital that departments consider how they use the resources allocated to them, including finding opportunities to reduce spend. If we remove this focus, it is inevitable that Government spend will continue to grow in an unsustainable way. All departments are expected to deliver their savings in a considered way, prioritising funding to deliver the most critical services both efficiently and effectively.
Ignores Strategic Reserve Policy
It is wholly inappropriate to use money from the Strategic Reserve to fund ongoing expenditure as suggested by this amendment. The Strategic Reserve is a long-term reserve to be used for specific purposes.
The Assembly approved the Strategic Reserve Policy in paragraph (k) of P.51/2024 (Budget 2025–2028) last year. That policy sets strict criteria for when the Fund can be used: to respond to economic shocks, natural disasters, or other exceptional circumstances. This amendment meets none of those criteria. Using the Strategic Reserve to fund day-to-day spending is contrary to the purpose of the Fund, as agreed by the Assembly.
The amendment refers to Article 24 of the Public Finances (Jersey) Law 2019. However, this article relates to emergency expenditure from the Consolidated Fund, outside of the usual budget process. It is not relevant to the annual budget process, under which the Assembly can fund pressures using the full range of fiscal options.
Contravenes Fiscal Policy Panel Advice
The Fiscal Policy Panel has been clear: the Strategic Reserve should be built to between 30–60% of GDP to safeguard Jersey against future shocks. The amendment also disregards the fiscal guidelines published in the Fiscal Framework (page 13 of the Budget) and monitored by the Fiscal Policy Panel, including to "seek to increase the Strategic Reserve over the long term."
Financially Unstainable
Whilst not explicit, it must be assumed that the amendment intends to increase the funding of the department on an ongoing basis. However, it offers no funding solution beyond 2026, and creates an ongoing unfunded financial pressure, which is imprudent and not in line with the principles of financial sustainability.
Without a funding solution, the Consolidated Fund would become negative in 2027. Ministers strongly believe that the States Assembly should agree a Budget that lives within our means. Whilst there will be arguments about what this means in terms of the balance of spend and income, planning to have a negative Consolidated Fund is clearly not living within our means. Consequently, Ministers do not support this amendment
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P.70/2025 Amd.(32) Com.