Revised plans on borrowing for Jersey new hospital project

A government review has recommended new health facilities being built across multiple sites, rather than just at Overdale (pictured)

Jersey's government has revealed a revised plan to pay for the island's hospital project in 2023.

It follows the publication of a government review which recommended health facilities should be built across multiple sites, rather than solely at Overdale.

Ministers now intend to limit new borrowing in 2023 for it to £51.5m.

Politicians will be asked to approve the new proposals during the budget debate, which is expected in December.

Single site 'inappropriate'

The States Assembly agreed in October 2021 to borrow up to £756m for a single-site hospital at Overdale.

The maximum budget for that project was set at £804.5m.

These figures were included in the 2023 Government Plan (budget) when it was published in October 2022.

But ministers have now submitted an amendment to their budget plans, after a review published in early November concluded the plans for Overdale were no longer "affordable" or "appropriate".

If it is approved, the government plans to borrow no more than £90.1m for the hospital project by the end of 2023.

That will include £38.6m already borrowed in 2022, and £51.5m of new borrowing.

That money will initially be paid into the Strategic Reserve - also known as the "rainy day fund" - before being transferred into the government's current account to be spent.

'Minimal' borrowing

Ministers said that of the £51.5m:

• £16m would pay for control of land at Kensington Place to be transferred to the Government of Jersey from Andium Homes

• £7m would pay for work to transform the former Les Quennevais School into a healthcare facility to continue

• £28.5m would pay for further work to develop plans for healthcare facilities across multiple sites - including "early designs"

The government said a longer-term plan to pay for new healthcare facilities would be announced in the future.

While the details are still to be confirmed, ministers said borrowing would be "kept to a minimum by utilising underspends".

Follow BBC Jersey on Twitter and Facebook. Send your story ideas to [e-mail].