Plans to increase strategic reserve fund abandoned

Aerial of St Helier/Jersey Finance area

A plan to top up Jersey’s long-term savings has been abandoned.

Deputy Max Andrews previously wanted a commitment the treasury would put more into the Strategic Reserve, also known as the rainy day fund.

The fund is there so the government can use it to respond to any crises or major downturns in the economy.

Currently, there is just over £1m in the fund, but financial experts have recommended the island needs more than three times that in the reserve.

Deputy Max Andrews withdrew his plans to ask the government for a commitment the treasury would put more into the Strategic Reserve

The fiscal policy panel, an independent panel of experts that scrutinises how Jersey spends its money, recommended in November 2023 that the government take urgent action to "replenish the fund".

Mr Andrews’ other savings plan, to divert department underspends to a different savings account, were heavily defeated in the States Assembly.

Just as members were preparing to discuss his second proposal, he announced he was withdrawing it – bringing an early end to States proceedings.

The treasury has already said it was working to improve the island's savings.