Jersey deputies approve government budget

Thirty-one States members voted for the amended budget and 13 voted against it

Jersey politicians have approved the government's budget, with £1.2bn earmarked to be spent on public services.

Health will be a big area of spending, with £710m to be spent on new health facilities and £31m invested into health services.

There will be a freeze in alcohol and fuel duty, while £20m will be made available over two years to help businesses transition to the living wage.

Thirty-one States members voted for the amended budget and 13 voted against it.

'Smooth transition'

Chief Minister Deputy Lyndon Farnham explained how the budget had been informed by the advice of the fiscal policy panel.

"We must replenish our reserves and reduce unnecessary spending," he said.

"It is that advice that has been critical in shaping the budget in front of us."

Farnham said helping islanders with the cost of living was a key priority.

"While we have seen a decrease in inflationary pressures, many islanders are struggling to meet day to day costs, and we have applied freezes to duty on fuel and alcohol to support businesses and islanders with day to day costs, as well as reducing income tax thresholds," he said.

Under the plans, the government will provide a £20m support package over two years to help businesses to transition to a living wage.

Farnham said the budget "does not shy away from helping people who need help, it is not popular amongst some that we are moving to a higher wage economy, but it will benefit the island, the economy, that’s why we need support in place to ensure a smooth transition."

Commercially sensitive

There was strong criticism against the budget, particularly on what deputies said was a lack of transparency around the spending on new health facilities.

While the budget shows the new health facilities will cost £710m, it does not have a breakdown on much the Kensington Place site or the St Saviours health village would cost.

The government said it did not publish the figures due to commercial sensitivities.

Deputy Jonathan Renouf, chairman of the Hospital Review Panel said: "It's a disgrace that this government has essentially said to the health minister, 'you go ahead and spend the money'.

"The health minister, it seems, cannot be challenged."

'Out of control'

Deputy Karen Wilson criticised the amendment more broadly.

She said the budget had "no plans to address the economic realities we face, particularly in terms of producing opportunity for young people".

"We will be behind the curve when it comes to innovation and technology," she said.

Wilson, a former health minister, added: "Health spending it out of control.

"Trying to get into the detail into how much money has been allocated to each part of the scheme is really, really difficult."