Report has major concerns about States finances

The total external borrowings for the States Group in December 2024 was £1.14b

A committee has raised "major concerns" about States finances, including an overspend of £30.7m by the health department in 2024.

The Public Accounts Committee (PAC) has released its report on the States Annual Reports and Accounts 2024 (ARA), outlining concerns over transparency in public spending, fiscal sustainability and departmental overspending in health.

PAC chair, Deputy Inna Gardiner, said the the total external borrowings for the States Group at 31 December 2024 was £1.14b, compared to 2013 when it owed nothing.

Gardiner added: "It is crucial that robust financial controls are put in place to ensure spending across government, but particularly in health, is controlled."

In its latest report, PAC looked at how ministers were using taxpayers money, with Gardiner stating there was "rising expenditure, falling reserves, and weakening financial discipline".

She said public spending exceeded public income, with the difference being covered through in-year budget transfers, use of reserves, and delayed spending.

The report found the States of Jersey group held no external borrowings in 2013, but the levels of external borrowings had since risen.

"The total external borrowings for the States Group at 31 December 2024 was £1.14b, representing a material long-term liability that places added pressure on future public finances," the report said.

"Our findings raise serious concerns regarding whether the government can maintain our current spending, taxation, and borrowing habits and policies over the long term without incurring unsustainable debt or/and reducing essential services.

"The need for strategic planning and fiscal discipline has never been greater."

The committee made 20 recommendations including the development of a more accessible and interactive version of accounts to aid public understanding.

It said the government should publish, in time for the debate of the 2026 budget, a 10 year revenue and expenditure outlook focusing on potential changes to the island's demographics, as well as flagging forecast overspends to the assembly when they are above 2%.