Jersey budget: Deficit expected to be £145m by 2019

The medium term financial plan will see a freeze on the benefits budget in 2015

The Christmas bonus paid to pensioners in Jersey could be scrapped in a bid to cut a £145m deficit.

It is an additional benefit of £83.73 paid to those who already receive certain benefits.

Treasury Minister, Senator Alan Maclean, has outlined a number of measures to reduce the deficit over the next four years.

Certain departments including health and education will see budgets increase over the next four years.

The shortfall is made up of increased health and education funding, depreciation and pay and price commitments.

There will be investment in a number of areas including an additional £40m for the health department, £9m for education and £168m on capital projects including rebuilding Les Quennevais School.

That is offset against a drop in income through income tax and corporation tax.

The plan includes an additional £40m of funding for the health department by 2019

Proposed changes

• £70m will be taken from the strategic reserve to cover short term spending requirements

• £10m reduction in the benefits budget by freezing spending at 2015 level until 2019

• The free television licence scheme for some pensioners aged 75+ will close to new entrants

• £10m per year generated by introduce user pays charges on liquid and solid waste

• £70m saved through pay restraints, voluntary redundancies and more outsourcing

The Council of Ministers say the measures proposed will place Jersey on a path to fiscal balance and address any structural deficit by 2019.

Mr Maclean said: "Taking into account our latest income forecasts and our planned programme of investment in priority areas, we need to find a total of £145 million by 2019.

"We are finding staff and non-staff savings of £90 million and holding benefit spending at 2015 levels to save £10 million per year by 2019.

"Once we are satisfied that these savings are being delivered, we will introduce a new funding mechanism for our future health and social services to raise up to £35 million per year."

He said they also plan to raise £10m per year by 2019 through user pays charges for services like liquid and solid waste.

The medium term financial plan will be debated by politicians in October.