Guernsey States 'will not meet saving target'

Deputy Gavin St Pier said the States expected to be £5m short of its saving target

Guernsey States will not meet its £31m savings target by the end of the year, the treasury minister has said.

The aim of the five-year financial transformation programme was to permanently reduce States spending.

Deputy Gavin St Pier said £26m had been saved so far and the remainder would be made, but not in time for the 31 December deadline.

He said the two biggest departments were expected to overspend this year.

The Health and Social Services Department, which has a budget of £104m, is expected to overspend by more than £4m.

Last year the department overspent by £1.3m and in 2012 a series of cost cutting measures, including ward closures, aimed at minimising an overspend, which ended up being £2.2m, led to the board resigning.

The Education Department is expected to spend £2m more than its 2014 budget of £71m.

The minister said the 2015 budgets for the departments would have to be adapted to take into account the ongoing costs until the savings were made.

Deputy St Pier said: "I must stress the need for the States to continue to focus on expenditure restraint."