Jersey government spending falls as income hits £1bn

Newly published accounts show that for the first time, the government's net annual income was over £1bn

Jersey's government had a higher income and spent less than it had expected in 2022, resulting in a surplus of £104m.

Newly published accounts show that, for the first time, the States of Jersey's net annual income was more than £1bn.

But amid global economic volatility, the value of the government's investments fell by 6.5%.

Treasury Minister Ian Gorst said the report showed "continuing progress on long-term finance sustainability and stability".

The government's net annual income reached £1.03bn, helped by increases of 12% in income tax and 11% in GST payments compared with figures for 2021.

Taxes on the sale of alcohol and tobacco fell by 17%

Treasurer Richard Bell said the increases were the result of inflation and interest rate rises, which had pushed up average earnings and the cost of goods and services.

But the States of Jersey received 11% less in Stamp Duty, as property sales slowed towards the end of the year.

And Impots Duties, the taxes on the sale of alcohol and tobacco, fell by 17% compared with the previous year.

The government spent less in 2022 at £873m than in 2021 and 2020, when spending was £888m and £919m respectively.

Each government department, with the exception of the Treasury, saw spending increase in Jersey

This was predominantly due to a 61% fall in the amount spent on the response to the Covid-19 pandemic.

Despite this, each government department, with the exception of the Treasury, saw spending increases.

And staff costs rose by 7% to £512m, as the States of Jersey's headcount increased to 7,147 full-time equivalent roles by the end of the year.

Having risen by 10.3% throughout 2021, the value of the government's investments fell by 6.5% in 2022.

The Strategic Reserve, commonly known as The Rainy Day Fund, dropped 3.9% in value, to £922m.

However, the government stressed that it was a long-term investor, and investment valuations had increased by 4.5% in the first quarter of 2023.

It reported net assets of £7.9bn "despite challenging investment conditions impacting our investment returns over the short term".

Mr Gorst said: "Income was better than anticipated, expenditure lower than estimated and borrowing relating to Covid has been completely repaid.

"However, we still face many financial pressures and need to return to prudence and live within our means."

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