Guernsey's surplus 100 times greater than expected for 2019

Deputy Gavin St Pier said the States had only expected a surplus of £1m for 2019

The States of Guernsey has reported a £105.6m surplus in 2019, according to government accounts.

President of the Policy Resources Committee Gavin St Pier said the figure was more than 100 times what was originally anticipated for the year.

This represents a significant shift from a 2018 deficit of £16.2m.

Deputy St Pier said the turnaround was due to "very strong" investment returns of £86.3m and a £25.6m increase in tax revenue.

Mr St Pier said: "We also had some good results in terms of spending and some less good results... but overall the net result was very strong.

"I think the the reality is that it is the result of many years of strong discipline in how we set and control budgets."

However, he acknowledged "much of the gain" has reversed in 2020 thanks to the Covid-19 pandemic, but said the economic position going into the crisis would help the States response.

Mr St Pier argued decades of a "prudent approach to public finances" in Guernsey had allowed the States to build up £195m in government reserves, £100m of which will be used to fund recovery alongside up to £550m in borrowing.

"That has stood us in very good stead, it was there to meet a crisis... and we're now drawing on that fund."