States of Alderney sets aside £500,000 to cover healthcare costs

The States of Alderney took on new healthcare costs in 2022

The States of Alderney plans to use about £500,000 from its reserves to cover new healthcare costs in 2023.

The States is now funding the island's ambulance service and, along with the States of Guernsey, has bought the island's only GP practice.

The unexpected hikes in costs are being paid in part in 2022 by a "windfall" from a "mini housing boom".

In the proposed budget plans for 2023 property tax will increase for the majority of homeowners.

The States said this would be "a modest increase of between £1 and £3 a week on Property Tax bills".

It added the £500,000 from reserves was set aside for healthcare as "a worst-case scenario to cover the exceptional shortfall".

The States also received "an unexpected £1.3m windfall" in 2022 from document and property transfer duty, fuel duty and vehicle import licence fees.

'Immediate problem'

Some of this money has gone towards covering the £680,000 cost this year of taking on ambulance and GP services.

Chris Harris, chairman of the Finance Committee, said the issues with GP and ambulance services presented an "acute and immediate problem with unprecedented pressure on our budget".

Mr Harris said: "Any increase in property tax is unwelcome but the efforts of professionals across the Bailiwick have led, ultimately, to an excellent and consistent level of healthcare for all islanders this year and into the future.

"The use of reserves is not a decision we have taken lightly and is not a sustainable strategy.

"However, we are fortunate that exceptional revenue generation in the last two years has given us the flexibility to use some of this to alleviate the burden on residents that may otherwise have been unavoidable."

Island Medical Limited has been jointly purchased by the States of Alderney and the States of Guernsey

The States said it was also using reserves to invest and looking at new revenue streams to "help to pay for future demands for health and social care in an ageing population".

Mr Harris said: "We regret that the budget for 2023 does not make for entirely positive reading and we are acutely aware of the issues that need addressing."

The budget will now go forward to the States of Alderney meeting on 12 October for debate.

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