Jersey Plans Public Sector Downsizing in 2026 Budget Approval

Plans to downsize Jersey’s public sector have been firmly established following the approval of the island’s Budget for 2026. Treasury Minister Deputy Elaine Millar announced during a recent States Assembly debate that measures to reduce public sector growth are imminent. This decision comes amidst increasing scrutiny over the government’s spending practices.

In concluding four days of rigorous discussions, Deputy Millar emphasized the need for careful management of public services. “This is the final budget of this government,” she stated, acknowledging the challenging decisions ahead. She reassured Assembly members that ministers are committed to controlling growth in a manner that ensures public services remain sustainable.

During the debate, Deputy Sir Philip Bailhache proposed a significant reduction in public sector spending. He suggested that the next government should implement a plan to cut £100 million and seek a 10% reduction in headcount across various departments. In response, Deputy Millar confirmed that the government chief executive has already been given a mandate to “resize” the public service, with proposals set to be discussed at a workshop in February 2024.

The Treasury Minister outlined previous efforts to limit government expenditure, such as imposing recruitment restrictions and minimizing reliance on external consultants. She firmly stated, “We are not going to keep creating structures and bodies that we simply cannot afford,” signaling her opposition to the establishment of new independent entities or additional oversight bodies.

In a parallel discussion, Chief Minister Deputy Lyndon Farnham highlighted an alarming trend in government spending. “We are spending like a big country,” he remarked, indicating that Jersey’s regulatory approach and financial practices must reflect its status as a small island. The Chief Minister cautioned against the risks of excessive borrowing, urging a return to the island’s core values.

The debate featured criticism from Deputy Inna Gardiner, chair of the Public Accounts Committee, who expressed concern that the government has made numerous promises without providing substantial details. She warned that Jersey could be heading towards a state of “managing decline” rather than fostering growth.

Ultimately, the Budget received support from 29 members, with 10 votes against and one abstention. Following the vote, former Chief Minister Deputy Kristina Moore characterized the outcome as “hardly a strong endorsement.” In contrast, Reform Jersey leader and Housing Minister Sam Mézec celebrated the Budget as a win for the islanders, highlighting initiatives such as 15 hours per week of free childcare for children aged two to three, an expanded Pension Plus scheme, and a ‘back to school bonus’ aimed at alleviating costs for families.

The Budget debate highlighted ongoing divisions among Assembly members, with nine deputies opposing the proposal and one abstaining. Additionally, eight members were absent during the final vote, including Deputy Kirsten Morel, the Economic Development Minister.

As Jersey prepares for the changes outlined in the Budget, the government faces the challenge of implementing effective strategies to ensure public services remain sustainable while addressing the fiscal concerns voiced by various stakeholders. The proposed measures could redefine the landscape of public service in Jersey, emphasizing efficiency and financial accountability.