Budget (Government Plan) 2025 to 2028

• seek to increase the Strategic Reserve over the long term and public sector net worth, while heeding the advice of the FPP on borrowing and net financial assets 
• run a structural current balance or surplus in the long-term until the Strategic Reserve is judged large enough to meet its objectives
  
• borrow only to finance investment (or refinance liabilities), except under times of economic duress, and monitor the impact on net financial assets
  

Sustainable wellbeing

Island outcomes and sustainable wellbeing

The Common Strategic Policy (CSP) of the new Council of Ministers was approved by the States Assembly in May 2024. It sets out 13 priorities that are aligned with the long-term vision set out in the Future Jersey report and the 10 Island Outcomes arising from it. 

The Budget document sets out how the Government will deploy its finances to deliver these priorities, as well as the wide range of existing government services that support the ongoing well-being of Islanders.

As part of the prioritisation of community well-being, the Social Security department has allocated £391,215 of funding to the Connect Me project for the year 2025 to ensure the continuation of the project and support the introduction of social prescribing.

Future Jersey vision

The long-term vision for Jersey in 2037 was produced by the Future Jersey consultation and is captured by the vision statement:

“An Island loved for its beautiful coast and countryside, rich heritage, diverse wildlife and clean air, land and water. An Island where a sense of community really matters, a safe place to grow up and enjoy life. An Island that offers everyone the opportunity to contribute to, and share in, the success of a strong, sustainable economy.”

The Future Jersey vision focuses on long-term progress and measures community wellbeing, environmental wellbeing, and economic wellbeing. This provides a way of measuring Jersey’s quality of life.

Island outcomes

The Island Outcomes are split across 3 wellbeing aspects: 

• Community
• Economic
• Environmental
  

Figure 7: Island Outcomes

Similarly, the Public Finances (Jersey) Law 2019 requires the Council of Ministers to take into account the sustainable wellbeing (including the economic, social, environmental and cultural wellbeing) of the inhabitants of Jersey (“Islanders”) over successive generations when preparing the Government Plan each year.

Progress over time towards the Island Outcomes and the sustainable wellbeing of Islanders over successive generations is monitored using the Island Indicators which are updated over time and published on the Jersey Performance Framework.

Jersey performance framework

The Jersey Performance Framework is used to report on the Government of Jersey’s performance. It's underpinned by a shared ambition for the sustainable wellbeing of current and future Islanders.

The Jersey Performance Framework comprises:

The Island Outcome Indicators have been refreshed over 2023 to 20​​​​24 and a new visualisation has been published on gov.je.

Common Strategic Policy 2024 to 2026

In the Common Strategic Policy 2024 to 2026 (CSP), the Council of Ministers set out its priorities for delivery in its 2-year term of office, which span all 3 facets of wellbeing. The CSP was developed after Ministers reviewed the detailed data from a number of sources, including the Jersey Opinions and Lifestyle Survey and the Island Outcome Indicators. The individual priorities are linked to the Island Outcomes.

Ministers and their departments will also be guided by the Island Outcomes in delivering all of their business-as-usual activities.

Figure 8: Common Strategic Policies

Sustainable wellbeing and the Budget

The Budget contains approvals for the Council of Ministers’ income estimates and spending proposals for the next 4 years. These spending allocations include some additional allocations needed to progress with CSP priorities, but importantly also continue to fund the wide range of activities that Government is already delivering to provide services and support positive outcomes for Islanders.

The Budget approves heads of expenditure (“budgets”), the majority of which are used to fund the provision of public services which support the sustainable wellbeing of Islanders. This includes, for example the provision of education to our children, provision of healthcare to Islanders and ensuring public safety through blue light services and the justice system.

Further detail on the amounts allocated to each head of expenditure is set out in the public sector spending section of this document. Supplementary detail for each Department will be provided in the Annex to the Budget.

The cost and affordability of the 13 priorities agreed in the CSP was considered during its development. Many are addressed through existing revenue and capital budgets. Where additional funding is required, this has been prioritised in this Budget, alongside funding to address key risks.

In their business-as-usual activity, Ministers continue to be guided by the Island Outcomes. This can take many forms. For example, when considering policy issues within their remit, Ministers take into account the well-being of Islanders and the long-term impacts of the policy. This is expressed through policy documents published by Ministers. Information on key public policies is published on gov.je, grouped by the Island Outcomes.

The link between the 3​​ wellbeing aspects (Community, Economic and Environmental) and some of the specific activities in the Budget is set out below.

Figure 9: Community Wellbeing

Figure 10: Economic Wellbeing

Figure 11: Environmental Wellbeing

Ministerial priorities and business plans

Alongside the 13 priorities set out in the Common Strategic Policy, Ministers and departments will continue to deliver essential public services and business as usual activities. 

Key objectives for Ministers and departments, the legislative programme and areas of policy development will be published in department Business Plans. The Business Plans will also include service performance measures which show how government departments are performing in the delivery of key public services. 

Information on the operational activities and structure of Government departments is available online at gov.je.

Risk

Alongside the sustainable wellbeing of the inhabitants of Jersey over successive generations, the Council of Ministers also consider key risks to Jersey and to the running of the Government of Jersey when considering how best to prioritise and allocate its resources. 

Whilst many of our key risks will be being addressed through existing resources, we set out below how certain risks are being addressed in the Budget.

Community wellbeing

Economic wellbeing​

Environmental wellbeing

Corporate performance

Government continues to develop its long-term financial planning, but already considers a range of scenarios to manage financial risk in both the medium and longer-term. We have a well-established fiscal policy, supported by the business planning process which continues to prioritise resources against the highest areas of priority and risk.

Financial strategy

Financial principles

The Council of Ministers agreed the following financial principles to be used as a framework for decisions making in preparing this budget.

Tax Policy principles

The following tax policy principles established in previous Plans continue to be used in this Plan.

1. Fair and sustainable

1.1 Taxation must be necessary, justifiable, and sustainable

1.2 Taxes should be low, broad, simple, and fair

1.3 Everyone should make an appropriate contribution to the cost of providing services, while those on the lowest incomes should be protected

2. Support broader Government Policy

2.1 Taxes must be internationally competitive

2.2 Taxation should support economic, environmental, and social policy

3. Efficient and effective

3.1 Taxes should be easy to implement, administer and comply with, at a reasonable cost

No individual tax measure will meet all these principles. But overall, the Island’s tax regime should represent a sustainable balance of them.

Financial strategy for 2025 to 2028

The Council of Ministers developed a Common Strategic Policy (CSP), that focuses on delivering sensible, practical solutions to make Islanders’ lives better. This Budget builds upon the foundations set out in the CSP to ensure funding is in place to deliver on real outcomes that will benefit our Island community.

The Budget has been prepared against the backdrop of heightened geopolitical risks and global economic uncertainty. Inflation levels have peaked, and are expected to return to more normal levels, along with interest rate projections, however, there remains pressure on both Government and household finances.

In developing the Budget, the Council of Ministers have restated their commitment to the principles agreed in their CSP:

The financial strategy for 2025 to 2028 is based upon these principles and actions agreed in the CSP.

The key elements of the medium-term financial strategy for this Budget are:

Although the focus of the Budget is on immediate delivery over the next 2 years of office the Budget also seeks to address longer term strategic challenges.

Whilst the forecasting of the impact of the introduction of the Pillar Two tax framework remains uncertain, this Budget also sets out how the Government plans to use any additional revenues to help ensure the long-term sustainability of both the Island’s economy, and its public finances.

Sustainable public finances

The Public Finances (Jersey) Law 2019 (PFL) sets out a requirement for the Budget to have regard to the long-term sustainability of the Island to ensure that we safeguard it for future generations.

This plan delivers budgets that are broadly balanced across the plan. This is important to ensure that we are spending within our means and making adequate provision for the replacement of our assets.

Whilst income forecasts have improved across the plan, spending has also increased above inflation to fund further deficits in Health and Community Services, and CSP priorities. The recurring impact of revenue expenditure growth is a £41 million increase in departmental expenditure by 2028, most of which is for Health and Community Services and commences in 2025, which is offset by £47 million of planned savings per annum by 2028. This Budget takes actions to restore balanced budgets across the period of the plan, with a largely inherited deficit in 2025 followed by transition to surpluses in subsequent years, which are used to fund investment in capital projects.

Table 1: Forecast Operating Balance

The financial forecast above excludes the impact of the introduction of the Pillar Two tax framework for accounting periods beginning on or after 1 January 2025. The receipts will not be available to spend until 2026 onwards.

Whilst forecasting the impact accurately remains extremely difficult, a prudent “base case” of additional tax receipts has been estimated upon which we have a high level of confidence will be received on a recurring basis for the foreseeable future.

These additional recurring receipts are proposed to be used primarily to meet the financing costs for Phase 1 of our New Healthcare facilities (NHF) and maintaining and enhancing the competitiveness of our international financial services sector. A more detailed package of support and investment will be made in the next Budget.

There is considerable upside potential for the receipts arising from the implementation of Pillar Two, however there is also significant uncertainty as to the scale of the extra receipts and how long the Island can expect to receive this income. Accordingly spending plans have not been developed which depends upon those receipts, particularly on a recurring basis. These receipts will be an opportunity to further invest in critical Island infrastructure, including phase one of the New Healthcare Facilities, and assist in growing our reserves – in particular the Stabilisation Fund and Strategic Reserve, in line with FPP recommendations. These receipts should not be used to fund recurring expenditure.

This Budget also presents how we will pay for phase 1 of the New Healthcare Facilities, a critical project to the future wellbeing of Islanders. We will use a sensible plan that blends borrowing and the use of reserves, with Pillar Two receipts being used to service the borrowing into the future.

The phased approach to providing New Healthcare Facilities is designed to ensure that each phase of the project is only committed to once an affordable financing strategy has been determined. This protects the public finances from being over-committed, helping ensure their long-term sustainability.

Whilst this Budget proposes the use of the Strategic Reserve to assist with funding the NHF, it also takes action to increase the value of the Strategic Reserve towards the target recommended by the FPP in the long-term, by proposing that, from 2026, all receipts from the payments of Prior Year Basis be allocated to the Strategic Reserve. The balance in the fund (excluding PYB Debtors) is forecast to be broadly maintained over the plan period, subject to short-term volatility, but the transfer adds an additional income stream into the fund. Pillar Two receipts also present an opportunity to build the reserve, as well as to rebuild the Stabilisation Fund.

Work is underway to develop a more detailed understanding of the longer-term forecast for public finances, which will consider the impact of changes to population size, demographics, and the economy over longer timescales. This will build on existing work, including the review of the sustainability of the Island’s health and care costs.

General revenue income

The Government funds ongoing annual expenditure and investment in assets through three main sources: general tax revenues, other government income and departmental income.

These three sources of revenue are paid into the Consolidated Fund.

General tax revenue

General tax revenues provide the main source of funding for the Government, with 4 main tax types.

Other government incomes

The Government also receives income from 4 other sources, as set out in the table below.

Departmental income sources

In addition to amounts paid directly to the Consolidated Fund, Government departments receive money from fees and charges for individual services. These amounts are included within individual net revenue expenditure allocations and are estimated at £120 million in 2025. The number of diverse sources of income reflects the variety of services provided by the Government. This includes fees for private patients at the hospital, school fees, fees for the disposal of inert waste, planning fees, and income from rents and our sports facilities. This income is included in department heads of expenditure.

A challenge for the Infrastructure department is the loss of income arising from the reduced capacity at the inert waste site. This loss of income will not result in associated expenditure savings, resulting in a sizable cost pressure. Over the medium term, the Minister for Infrastructure intends to bring forward commercial waste charges to recover the costs of treatment and to encourage improved environmental outcomes. To continue the shelter business and Islanders recovering from the recent impacts of the cost of living and doing business, Ministers propose to provide additional sums to the Infrastructure Department for the next 2 years.

Special Funds, including social security funds also receive income designated to them, as well as the investment returns on fund balances. This is then used for expenditure in line with the purpose and objectives of the funds.

Latest income forecasts

The Income Forecasting Group (IFG) advises on the forecasts of all States income from taxation and social security contributions. Membership of the group includes senior civil servants, the Government’s chief economic advisor as well as four external members.

Since the previous forecast (Summer 2023) used as the basis for Government Plan 2024 to 2027, the IFG have produced a new income forecast (Spring 2024). This reflects the latest economic assumptions produced by the independent Fiscal Policy Panel in May 2024. The forecast is published alongside the Budget 2025 to 2028.

The global macroeconomic outlook continues to evolve in a rapidly changing environment. Since summer 2024, the IFG revised forecast reflects slight improvement in the global economic outlook, but that growth prospects remain below historic averages with many advanced economies, including the UK forecast to experience low growth in the medium term.

The FPP economic assumptions reflect the latest local and international developments to May 2024. The main variations to the economic assumptions used in the IFG forecast for Spring 2024, since the previous Government Plan include:

In addition to the economic assumptions forecast by the FPP, the IFG’s latest forecast reflects:

Table 2: IFG Income Forecast

Figure 18: Range of IFG forecast

The overall changes from the summer 2023 forecast are:

Personal Income Tax

The forecast for personal income tax is expected to grow at a slower rate than previously forecast. This is based on the latest available results, data and the FPP assumptions, including an increase in average earnings assumptions.

Corporate Income Tax

The Corporate income tax forecast has increased compared to the summer 2023 forecast. This is driven by a reprofiling of the growth in financial services profits, based upon direct and confidential engagement directly with the major taxpayers in the sector, indicating significant growth in 2024. The forecast corporate income tax revenue from other sectors remains stable.

GST and International Services Entity Fees

The forecast for Goods and Services Tax (GST) has increased in each year of the plan. The FPP’s economic assumption for compensation of employees, the main determinant of GST receipts has been revised upward and is the main driver for the increase in receipts.

Impôts Duties

Impôts (excise) duty reflects a decrease from the Summer 2023 forecast due in part to lower-than-anticipated excise rates in the 2024 budget following the freeze to alcohol and fuel duties in 2024. Tobacco duty has seen large fluctuations since the Covid-19 pandemic, with changing consumer behaviours and remains challenging to forecast. The 2025 to 2028 forecast across alcohol, tobacco and fuel relies upon long-term consumption trends.

Stamp Duty

Stamp duty has been revised to incorporate the updated FPP economic assumptions. The Stamp duty forecast has decreased in each year of the forecast from summer 2023. This is principally due to the FPP economic assumptions forecasting a slower return to pre 2019 housing marketing activity than the previously forecast.

Budget proposals

Income tax (personal taxation) exemption thresholds and child allowance

Income tax exemption thresholds set a limit below which an individual, married couple or couple in a civil partnership do not pay income tax or Long-Term Care (LTC) contributions. Other family circumstances may increase an individual’s or couple’s exemption threshold through additional allowances, such as the second earner’s allowance and allowances in respect of children and childcare fees.

In comparison, the UK personal allowance has been frozen since the 2021 to 2022 tax year at £12,570, whilst the personal allowance threshold in Guernsey is set at £13,900 for 2024.

Table 3: Income Tax Exemption Thresholds

Excise duties

Ministers’ proposals for excise duties on tobacco, alcohol, road fuels, and motor vehicles, if approved by the Assembly, will take effect at midnight on 31 December 2024.

Tobacco

Ministers recognise that smoking represents a significant threat to the health and wellbeing of Islanders and continues to place a burden on our health care system. Having taken the advice of Public Health officials, Ministers are proposing to increase duties on tobacco products by 8.6%, which is the sum of the forecasted June 2024 RPI (3.6%) and an additional 5% escalator. This increases the duty on a standard packet of cigarettes by 83p. Cigars will be subject to an increase of 11.6% in line with existing policy to close the gap between the duty charged on cigars and cigarettes.

Alcohol

The hospitality industry continues to face challenges. In addition to an expansion of small distillers’ relief, Ministers are proposing to freeze alcohol duty in 2025. This will be the fifth year in a row that indexation of alcohol duty has been either frozen or held below inflation, also assisting with the ongoing cost of living pressures of Islanders.

Fuel duty

Following the freeze on road fuels duties in 2023 and 2024 to help with the cost of living, fuel duties are once again frozen in 2025. Ministers maintain the commitment to allocating 9 pence per litre from fuel duty receipts to the Climate Emergency Fund.

Table 4: Changes in Impôts (Excise) Duties

Vehicle Emissions Duty

Vehicle Emissions Duty (VED) is charged when a vehicle is first registered in the Island. The amount of VED payable depends on the vehicle’s CO2 emissions data, meaning that the charges are higher for the most polluting vehicles. The increase in income from VED proposals is transferred into the Climate Emergency Fund.

From 2025, it is proposed to increase the three highest emission bands for non-commercial vehicles. From 1 January 2025, the highest three emission bands will be increased by 5%, 15%, and 25% with no increases for most vehicles, which fall into the less polluting bands.

Commercial vehicle rates have not been increased since the category was introduced on 1 April 2022 and at the time reflected the rates from 2018. It is proposed that for commercial vehicles, VED will increase by forecast RPI (3.6%) across all bands to maintain the rate in real terms. Restricted Speed Agricultural Tractors VED rates will not be increased for 2025.

The Government will continue to keep VED rates under review in future years to encourage the importation of more efficient petrol and diesel vehicles, as well as electric vehicles.

Table 5: Veh​​icle Emissions Duty

Excise duty relief for craft spirits producers

Small distillers can currently benefit from lower rates of excise duty. Ministers are proposing to make two changes to the regime. First, a new category of relief will be created for small producers who use base spirit from an external supplier during the manufacturing process. Second, the maximum amount that can be made by a small producer to qualify for the lower duty rates will be increased from an average of 10,000 litres of pure alcohol over five years to 20,000 litres annually.

These changes will enable more local artisans to benefit from reduced rates and provide them with room to grow their business. The measures will also lower costs for pubs, restaurants, and hotels that stock these products, while promoting Jersey as a centre of high-quality spirits production showcasing our Island's distinctive botanicals, agricultural products, and other natural resources.

Group relief for stamp duty

The Government Plan 2024 to 2027 committed the Government to considering group relief for stamp duty, which would allow companies within the same corporate structure to transfer properties between themselves without incurring full stamp duty charges. 

The Budget will introduce a new relief to reduce the stamp duty or Land Transaction Tax payable on eligible intra-group transactions. From 1 January 2025 these transactions will be charged a nominal rate of £90 per transaction. The change will facilitate corporate restructuring and asset management between connected companies.

Secondhand bicycle margin scheme

The GST legislation allows suppliers of second-hand motor vehicles to apply a simplified calculation for GST based only on their value added. That is, the difference between the price at which they sell a vehicle and the price they paid for it.

To encourage the growth of businesses that deal in second-hand bicycles, the GST regulations will extend the simplified scheme for motor vehicles to pedal and electric bicycles.

GST refunds for DIY home builders

Currently, do-it-yourself (DIY) builders can apply for a GST refund on building materials if they are building a new home.

Recent assessments of the DIY home builder scheme have highlighted the risk of claims that extend beyond the original objectives of the policy, particularly in the context of high-value projects. 

To address this risk, it is proposed to cap reclaimable expenditure on home construction at £1 million. This will ensure that the scheme remains targeted to individuals personally building an average house.

Table 6: Summary of Budget Proposals

Future tax measures under consideration

Net zero financing strategy for the Carbon Neutral Roadmap

The net zero financing strategy for the Carbon Neutral Roadmap includes the need to raise additional revenues to allow the funding of the transition to net-zero by 2050. More detail is provided in the section on the Carbon Neutral Roadmap Net Zero Financing Strategy.

Carbon tax or charge on private aircraft

Following an amendment to Government Plan 2024 to 2027, Ministers are committed to investigating “an appropriate carbon tax or charge relating to the operation of private aircraft.” The Government continues to engage with Ports of Jersey to consider the options available.

Fuel duty replacement policy

The vehicles seen on Jersey’s roads are changing in response to our carbon reduction ambitions and an evolving global market. In response to Government policies, and Islanders’ own choices, receipts of road fuels duty will decline, with scope for the Government’s income to reduce by up to £26 million. 

It will still be necessary for the Government to meet the costs of road maintenance and improvement along with the wider costs arising from road usage. The income will also be used to support wider policy initiatives, such as the sustainable transport policy, the Carbon Neutral Roadmap and to fund other essential services.

Ministers are working to devise alternative charges which, over time, will begin to make up the funding lost from declining road fuel duty. Alternative charges being considered include a form of Vehicle Ownership Charge and a Road User Charge. It is not expected that any new charge could come into effect until 2026 at the earliest (with the law passing to give effect to the change in 2025).

Interest deductions for landlords

Following an amendment to Government Plan 2024 to 2027, Ministers continue to examine the case for removing the ability to claim deductions for interest paid in respect of residential properties that are rented out. This work will give consideration of the timing and cumulative impact upon Jersey’s housing market of any potential change.

Taxing vaping products

The Government is committed to safeguarding the health of Islanders and minimising the harmful effects of nicotine consumption in all its forms. The potential role for taxation in reducing the consumption of nicotine through vaping is being studied. Any recommendations made as a result of this work will ensure that vapes remain an affordable alternative to tobacco that support smokers in quitting for good.

On premises retail alcohol sales: “tap relief”

Ministers are further supporting Jersey’s hospitality industry by laying the groundwork for tap relief. That is, a separate category and lower rate of duty on alcohol sold from large containers in bars, restaurants, and hotels. 

A similar policy was recently introduced in the UK. Legislative changes will be made to provide the capability for future governments to offer a preferred duty rate to qualifying sales made on licenced premises. 

The intention is to improve the competitiveness of prices within the hospitality sector against prices off-licence and in low-cost destinations. The option will not be immediately necessary due to this year's freeze in duty. However, Ministers are legislating the framework to offer tap relief in future years.

The introduction of tap relief would benefit both businesses and consumers. For establishments, a preferential duty rate will provide room to reinvest in their services and customer experience and reduce prices for patrons. This, in turn, can stimulate local economies by attracting more visitors and encouraging higher spending within the community. 

For consumers, it means more affordable prices, enhancing the appeal of dining out and participating in social experiences. This policy underscores the commitment to fostering a thriving hospitality industry, which is a cornerstone of Jersey's economy and Island life.

Review of international services entities (ISEs)

The ISE regime is available for use by (largely financial) entities mainly providing services to overseas customers. Entities listed as ISEs pay an annual fee in consideration for which they remain outside the normal GST regime.

A limited review of aspects of the ISE regime will be conducted before the next Budget, with a view to simplifying the legislation and fee structure, while maintaining broad revenue neutrality.

International tax reform

Over the past four years, the Organisation for Economic Co-operation and Development (OECD) has been working to establish a new global tax framework, aimed at addressing the tax challenges arising from the increasing digitalisation of the economy. The Government of Jersey has been closely engaged in this process, through Jersey’s seat on the OECD Steering Group of the Inclusive Framework on Base Erosion and Profit Shifting and other related OECD fora.

This international tax reform project is targeted and limited in scope, focussing on the world’s largest Multi-National Enterprises (MNEs). 

It comprises two pillars of OECD work which are explained in more detail on gov.je.

Jersey is implementing the 15% Pillar Two regime from 2025

On 21 May 2024, the Government of Jersey announced4 that it is proceeding with plans to implement the Pillar Two 15% minimum tax framework for accounting periods beginning on or after 1 January 2025. It will apply only to the large in-scope MNE groups, as set out above. Jersey’s existing corporate income tax regime will continue to apply to all other companies.

Draft Pillar Two legislation is expected to be lodged by the Minister for Treasury and​​ Resources at the end of July 2024, for debate by the States Assembly in October of this year.

The other Crown Dependencies (Guernsey and the Isle of Man) are also proposing to introduce the Pillar Two regime to a common timeline with Jersey, for accounting periods commencing on or after 1 January 2025.

Forecasting pillar two tax receipts

The implementation of Pillar Two in Jerse​y will increase tax revenues from in-scope Pillar Two groups in relation to their accounting periods ending on or after 1 January 2025. Tax receipts will be included in the Budget from 2026, such as a year in arrears in common with existing Corporate Income Tax.

Forecasting the future revenue impact of Pillar Two implementation is a complex exercise for all 147 jurisdictions in the OECD Inclusive Framework. The Pillar Two regime is still in its inception phase and the pace and manner of its roll out varies across the globe. Future Pillar Two revenues are contingent on both the implementation of Pillar Two by other jurisdictions and on the behavioural responses of multinational groups affected by Pillar Two.

Therefore, Jersey has developed a “base case” approach to the forecast of the additional corporate income tax expected to be received from taxpayers in Jersey, following implementation of Pillar Two. This is the revenue that we are reasonably confident will be raised on a recurring basis for the foreseeable future. We will continue to assess the situation as it develops internationally over the coming months and years.

Table 7: Pillar Two Forecast Revenues

It is proposed that receipts from the Base Case are applied based on the following priorities:

The international tax landscape continues to evolve, and it is necessary to look at the jurisdiction’s offering and competitiveness holistically in order to maintain Jersey’s revenues from the finance sector. We need a focus on providing businesses that are investing and operating in Jersey with regulatory certainty and improvements to the ease of doing business here. Ensuring that funding is made available to support the transition to a net-zero economy through the promotion of Sustainable Finance. This will support these goals and provide a clear action plan and delivery framework, embedding sustainability into all financial practices. This is essential for maintaining (and growing) our revenues from the international finance sector which will, in turn, benefit the wider Jersey economy.

A competitive Pillar Two compliant package of support of £15 million per annum will be earmarked from base case receipts, will be used to boost the productivity, digital capacity and skills of the financial services sector and the wider economy, while seeking to reduce operating costs. Specifically, making funding available for drivers to a net-zero economy identified and delivered through the Sustainable Finance Action Plan which will embed sustainability into financial practices and business practices and support the decarbonisation of the finance industry. The package would be brought forward in the next Budget for approval from 2026 (the first year of receipts).

Table 8: Pillar Two Net Position

It is proposed that the considerable potential upside revenues from Pillar Two should be used for strengthening reserves, further investment in competitiveness, and investment in infrastructure, in particular meeting part of the capital costs of the first phase of the New Hospital Facilities.

It should not be spent on recurring items, as the future income remains highly uncertain. Such management of the Pillar Two upside revenues will be fiscally prudent and sustainable while also harnessing Jersey’s continued growth as an International Finance Centre. Further detail will be proposed in next year’s Budget 2026.

Summary of general revenue income forecast, incorporating budget measures

Table 9: Income Forecast, including additional income measures

Public sector spending 2025 to 2028

This Budget proposes £1.2 billion of spending in 2025 on delivering services to Islanders.

Revenue heads of expenditure

The Budget is required, by the Public Finances Law, to set out the proposed amount to be spent from the Consolidated Fund by each head of expenditure, after allowing for any estimates of departmental income. Heads of expenditure within this Budget relate to each Government of Jersey department, Non-Ministerial and other States bodies, and a separate head of expenditure for the Central Reserve. Expenditure has been allocated to departments for 2025, and estimates produced for 2026 to 2028.

Departmental heads of expenditure are aligned according to lines of accountability under the Public Finances Law. Expenditure is approved in this manner to ensure that there is clear accountability, both at political and officer levels. The departmental expenditure limits for 2025 incorporate both existing resource requirements and new funding, but exclude pay-inflation, which is held centrally in reserves. Whilst this is generally aligned to Ministerial portfolios, there are some differences, and a Ministerial mapping is provided as part of the Annex to the Budget.

Figure 19: Departmental Net Revenue Expenditure (excluding Reserves)

The above chart illustrates the proportion of Government net revenue spending in 2025, on Health and Community Services (27%), Children, Families, Education, and Lifelong Learning (19%), tax funded social benefits (18%), and other public services (36%). General public services and other, includes all other departmental and Non-Ministerial functions listed in Table 10.

Table 10: Revenue Heads of Expenditure

Future year estimates include departmental allocations of savings, but not provisions for inflation (which will be confirmed in future Budgets) and are held in Central Reserves estimates. Budget estimates including inflation provisions held in the Central Reserve allocated to departments will be included in the Annex to the Budget, for indicative purposes.

The establishment of a Public Services Ombudsperson, as approved in principle by the States Assembly in March 2018 [P.32/2018] and progressed by the preceding Government, remains under review by the Council of Ministers. The Complaints Panel is itself conducting a review of its own procedures and processes. In July 2024, the Jersey Law Commission published a report entitled “Keeping the Complaints Panel or creating the Ombudsperson”, which worked through the different choices about the basic design of Jersey’s independent complaints handling body with the aim of taking an informed decision as to whether to keep a reformed Complaints Panel or go forward with the Ombudsperson. Subsequent to that report, a consultation paper was published. The Council of Ministers will fully consider the consultation results published by the Jersey Law Commission and Complaints Panel respectively when considering the appropriate way forward. Detailed proposals will be brought forward in 2025 for States Assembly approval and also detailed in the successive Government Plan.

Within the Revenue Head of Expenditure for the Cabinet Office, funding for Statistics Jersey will be increased by £78,000 through the reallocation of other departmental expenditure within the Cabinet Office.

Changes to revenue expenditure

The Budget proposes £1.2 billion of spending on delivering public services to Islanders in 2025, an increase from 2024 driven largely by inflationary pressures, funding for investment in the CSP as well as Health and Community Services.

Table 11: Changes to Ne​t Revenue Expenditure​

Figure 20: Income and expenditure trends before depreciation

In line with the CSP, where possible existing allocations have been reprioritised to deliver objectives. Revenue expenditure growth has been limited to delivering specific CSP priorities and providing funding to address ongoing and worsening deficits in Health and Community Services.

Common strategic policy priorities

Table 12: CSP Revenue Expenditure Growth

The CSP sets out 13 priorities over the next two years, aligned with the long-term vision set out in the Future Jersey report and ten Island Outcomes arising from it. Where delivery of these priorities can’t be met through reprioritisation of existing resources and budgets, additional funding has been provided. This includes funding to deliver the Violence Against Women and Girls (VAWG) Taskforce recommendations, extending nursery and childcare provision, providing nutritious school meals for Government maintained primary schools, investment in lifelong learning and future skills provision, as well as funding for the deferral of waste charges until 2027.

Implementation of VAWG Taskforce Recommendations

The additional funding will ensure the continued implementation of the VAWG Taskforce Recommendations. Primarily the investment covers the cost of a law drafter for the period, training costs, as well as the cost of an external researcher to carry out independent reviews.

Extend Nursery and childcare provision

Funding will deliver a phased introduction of nursery and childcare provision to children aged 2 to 3 years with additional needs. It will make comprehensive training and development available for staff in the early years sector, with the aim of improving the quality of early years education and the recruitment and retention of staff. It would also fund a pilot scheme to increase access to unused spaces in our primary school nurseries, as well as conducting an assessment of nursery capacity in St Helier.

Provide a nutritious school meal for every child in all States primary schools

This additional investment will fund the expansion and continued implementation of the existing school meal programme funded through previous Government Plans.

Investing in Lifelong Learning and Future Skills Provision

This investment will meet the cost of enhancing grants to students both in distance learning and in person learning.

We will also review the scheme available for apprenticeships and increase the funding and support available.

This priority will focus on re-shaping the lifelong learning and future skills provision and the Minister will bring forward proposals in this Budget period.

Minimum Income Standards: Living wage

Additional funding will be used to ensure the commissioning of a research study to establish and maintain a set of household minimum income standards in Jersey. This is expected to support the improved understanding of basic living costs in Jersey and will help to inform future policies in respect of minimum wage and benefit rates.

Deferral of Waste Income Charges

In line with the CSP commitment to Government fees, duties and charges as low as possible to help Islanders with the cost of living in 2025, the introduction of commercial solid waste charges will be deferred until 2027. In the interim, funding will be provided to the Infrastructure department to alleviate financial pressures, including the loss of inert waste income as the La Collette site reaches capacity. The deferral of charges will also help to support businesses, who will also be transitioning to a Living Wage over the next two years.

Business support during the transition to a Living Wage

As part of the 2024 Common Strategic Policy, Ministers have committed to implementing the States Assembly decision to bring the minimum wage to two-thirds of the median wage by the end of this term of office.

In recognition of the impacts on employers and employees, funding of up to £10 million will be provided in 2025 and 2026 to support businesses and charities whilst the living wage is implemented, with the cost met through a temporary reduction in the States Grant made to the Social Security Fund in both of these years. The primary objectives of the support will be to improve productivity and maintain competitiveness. A separate head of expenditure has been established, and suitable governance will be developed to ensure that schemes will meet those objectives. Further detail on the governance and support schemes under consideration will be provided in September. Where possible, existing schemes, adapted to fit new circumstances, will be used to minimise both bureaucracy and risk. The dual focus on competitiveness, particularly for exporters and productivity will aim to both drive economic growth and help reduce the cost of living in the medium term.

Achieving this priority will support employees in critical industries like retail, hospitality and agriculture with higher wages. It will also help support a thriving and more productive local economy and help us to attract workers to alleviate labour shortages.

Other revenue expenditure growth funding

Table 13 provides a summary of the revenue growth funding allocated in additional to that for the CSP.

Table 13: Ne​​w Revenue Expenditure Growth

In the aftermath of the Covid-19 pandemic, the previous Government Plan 2024 to 2027 recognised the ongoing challenges in Health and Community Services and provided for additional funding driven by both factors in the direct control of the department, and structural factors outside of their direct control.

A team to deliver a Financial Recovery Programme (FRP) has been put in place in 2023, to deliver efficiency savings of £25 million. In 2023 the FRP delivered savings of £3.2 million, with the profile of savings now reprofiled to deliver further recurring savings of £5 million in 2024, £8 million in 2025 and £9 million in 2026. This reprofile means that additional funding of £9 million has been allocated to the department in 2025 only.

FRP efficiency savings will reduce the deficit, through improved planning and control to enable more effective use of staff and resources, improved procurement and contract management, and optimising income generation.

In addition, since the previous Government Plan, healthcare activity and externally influenced costs such as the purchase of healthcare (mental health, social care, tertiary care), drugs, medical supplies and utilities have continued to rise sharply. A further £13 million of additional funding has been allocated on a recurring basis (in excess of the additional £14.5 million provided in Government Plan 2024 to 2027) to address these pressures.

In addition, £620,000 has been allocated to Health and Community Services for funding of In Vitro Fertilisation, recently approved by the Assembly.

Funding for the Termination of Pregnancy (Jersey) Law 1997 Amendments workstream will be reviewed to ensure that both policy and law drafting resource for this workstream is prioritised by the Council of Ministers in the 2025 Legislative Programme and in order for amendments to the current outdated law to be lodged prior to the end of 2025.

In accordance with Article 10 of the Public Finances (Jersey) Law, the Budget also provides for £2.3 million of revenue expenditure growth requests received from Non-Ministerial departments.

Further information on the proposed additional expenditure can be found in Appendix 3, and the Annex to the Budget.

Inflation

It is both prudent and good financial management to plan for the impact of economic influences on Government finances. As such, we have set aside amounts to cover inflationary pressures on pay (held centrally), social benefits and non-pay expenditure.

Inflation peaked at 12.7% in 2023 with expectations that inflation continues to fall in 2024, before stabilising around 1.7% in 2025. In this context, the Budget sets aside an additional £30 million in 2025 for the inflationary impact on government spending.

1.7% of non-pay expenditure inflation has been allocated directly to departments in 2025. The allocation of non-pay inflation is based on the Fiscal Policy Panel assumption for RPI published in May 2024.

The States Employment Board entered into a multi-year pay deal with all pay groups in early 2024, resolving the pay dispute with teaching unions and giving certainty to employees until 2026. The inflationary provisions for pay, include an additional 1% above the FPP assumption for RPI in both 2025 and 2026, agreed in the 3-year pay offer by the States Employment Board.

Provisions are held in the Central Reserve for pay inflation and non-pay inflation for future years. Once, the 2025 pay award is finalised, pay provisions will be allocated from Central Reserve to departmental budgets.

Inflation is expected to plateau around 2% in later years of the plan, with additional amounts provided to maintain departmental budgets in real terms. Inflation is, by nature cumulative, and so this amount grows throughout the plan. There remains a reduced, but still significant amount of uncertainty around levels of inflation. If inflation is higher the provision in the plan may not be sufficient to meet the cost of the agreed pay award, and the additional costs would need to be met from within the overall budgeted approvals in the plan. Higher inflation would typically also lead to increased levels of income and non-staff expenditure.

The transition to the living wage could potentially impact on States income, means-tested benefit payments and inflation. As there is a high level of uncertainty no provision has been made. Future economic assumptions from the FPP will incorporate any impact which will then be reflected in future Budgets.

Formula driven growth

The Budget also allocates a further £23.4 million to a number of areas of expenditure that are determined by pre-agreed formulae. 

These include:

• an annual 2% increase in Health budgets to maintain service standards and meet the costs of health care inflation
  
• staged increases in the Jersey Overseas Aid (JOA) budget to 0.3% of GVA by 2025
• formula driven increases for the States Grant to the Social Security Fund and Long-Term Care Fund (as set out in the sections “Social Security Fund” and “Long-Term Care Fund”)
  
• overdraft charges based on projected cash balances in the Consolidated Fund
  

Following approval of Funding for Culture, Arts and Heritage (P.69/2024), the Government continues the commitment to maintain funding to this sector based on 1% of overall States revenue expenditure.

Delivering savings to allow reprioritisation

The Common Strategic Policy outlines the Council of Ministers’ approach and commitment to reprioritise budgets where appropriate to deliver objectives, curbing growth in the public sector, relying less on consultants and preventing unnecessary expenditure.

To fund our priorities, the Budget includes proposals to reduce some spending, which will deliver savings over the plan period. A further breakdown of saving proposals is included in Appendix 3.

Table 14: Saving Proposals

Review of Arm’s Length and Regulatory Organisations

The Economy department has committed to reviewing how its Arm’s Length Organisations operate, and how savings could be delivered in those agencies through better sharing of resource and cross-organisational working. Those savings would be realised through lower grants paid.

In future years similar reviews of both grant-funded Arm’s Length Organisations and States funded regulatory bodies are anticipated to deliver further saving opportunities. The £1 million target in both 2026 and 2027 will be unallocated, pending the outcome of these reviews.

Reduce Office Footprint

The move to the new government offices enables the consolidation of the overall office estate delivering ongoing revenue savings, through lower Government running costs. Due to existing lease terms and conditions savings will be realised over a number of years, commencing in 2025 with £4.4 million fully realised by 2028.

Reprioritisation of previous growth funding

Revenue expenditure growth funding totalling £3.1 million allocated in Government Plan 2024 to 2027, has been reprioritised to support funding of CSP objectives.

Reduction in roles through removing management layers, removing extraneous activity and reduction in consultancy

The Council of Ministers has committed in its CSP to curb the growth in the public sector and rely less on external consultants, instead developing local talent within the civil service and redirecting monies saved to those areas where it is needed most.

It is expected that by establishing a more deliverable capital programme and growth allocations the need for consultants, contractors and professional advisors will diminish proportionately.

Role savings have been allocated in accordance with the principle of protecting frontline services.

In addition to reducing consultancy spend, staff savings will be delivered through

• removing long standing budgeted vacancies
• removing management layers
• focus on removing extraneous activity

Departments are developing plans to deliver against this £15 million target, allocations have been provided to departments in 2025, based upon plans, with estimates included for 2026.

Non-Ministerial departments were requested to contribute to savings targets, with a commitment to deliver £0.5 million received from most Non-Ministerial bodies.

Future Savings

The majority of savings have been allocated to departments, based on plans received to date. The remaining £4 million will be allocated in future budgets. The Council of Ministers considers that these additional savings will be achieved given the scale of departmental budgets (£1.2 billion in 2025).

HCS Financial Recovery Plan

In addition to the savings detailed above, the ongoing HCS Financial Recovery Programme (FRP) plans to deliver cost reductions to bring Health deficits under control. The timing of FRP savings has been reprofiled to a less aggressive timeline, based upon the advice of senior health colleagues, delivering £5 million in 2024, £8 million in 2025 and £9 million in 2026. These are on top of the FRP savings delivered in 2023, meaning that by 2026, the savings will amount to £25 million per annum, a year later than the original targets.

Table 15: HCS Financial Recovery Plan

FRP efficiency savings will reduce the deficit, through improved planning and control to enable more effective use of staff and resources, improved procurement and contract management, and optimising income generation.

Depreciation

Depreciation represents the cost of using Government assets in the provision of services. It is included when calculating whether the Government is running a surplus or a deficit, which follows FPP advice, and helps to ensure that the need to continue to invest in assets is adequately recognised in planning.

The increase in depreciation during 2025 to 2028 reflects an estimated uplift in asset values, because of assets being either created or replaced.

Reserves head of expenditure

This budget includes a single Central Reserve head of expenditure. As well as a provision of £7 million for unforeseen expenditure in year (including £2 million ring-fenced for social benefits), this incorporates centrally held items such as provisions for inflation that have not been allocated to departments.

Within the Central Reserve, funds earmarked in the General Reserve are held outside of operational expenditure limits, and can be used to meet modest unforeseen pressures, or to provide advance funding for urgent expenditure in the public interest. In each year, amounts are held to manage fluctuations in benefit expenditure due to economic changes, and to allow one-off funding for emerging issues.

The General Reserve in previous years has been supplemented by significant sums carried forward, this is not likely to be the case for 2025.

Table 16: Central Reserve Expenditure

Also included within Central Reserves, are inflation provisions for non-pay inflation over the years 2026 to 2028, with non-pay inflation allocated to departments in 2025. Pay inflation for the 2025 pay awards and future years are held centrally, and not included within departmental budget allocations until pay awards have been agreed.

Additional funding of £2 million is set aside in the Central Reserve for the First Step assisted home ownership scheme, this will provide further support to first time buyers to help make home ownership achievable for those struggling to get on the property ladder. The additional money will be funded by transfers from legacy housing funds.

Capital and other projects 2025 to 2028

Introduction

The Capital Programme sets out expenditure on the development and replacement of the Island’s assets, including Estates, Infrastructure, Equipment, and IT. It is essential that we continue to invest in the replacement and maintenance of our Island’s assets so that we can deliver the services that Islanders need. The focus of the Capital Programme is the projects that will be delivered by the Government of Jersey. It does not include the capital plans of the States of Jersey Development Company, Andium Homes and other State-Owned Entities, who will also be investing significantly across the 4-year horizon of this budget.

Funding allocated to projects through the Capital Programme is on a cashflow basis. For Major Projects, both the first year of expenditure and the total cost of the project are presented for approval. For other projects, approvals are annual even though a 4-year view of cashflow is presented.

The Public Finances Law 2019 defines ‘major projects’ under Article 1 as follows:

1. a capital project the duration of which, from start to finish, is planned to be of more than one year and the total cost of which is planned to be of more than £5 million

2. a project that has been designated as a major project under an approved government plan

Major Projects are separately identified within each section of the programme.

The Capital Programme also includes Grouped Heads of Expenditure. They help to increase flexibility, allowing Accountable Officers to manage individual projects within a wider programme so that any delays or changes to project expenditure can be managed within the approved financial envelope.

Major Projects are not included in a grouped head of expenditure once the total expenditure for the project has been agreed in a Budget. However, some projects planned for future years of a grouped head of expenditure may ultimately become Major Projects (if the estimated costs exceed £5 million). For example, a replacement school would almost certainly become a major project but would remain in the New School and Educational Developments grouped head of expenditure until the timing and costs are finalised.

Under the Public Finances Law, the Minister for Treasury and Resources can approve changes to funding allocations for projects through the application of property receipts or other income. It is anticipated that the property disposals in 2026 will provide £3 million to support the creation of new property assets. The specific properties to be disposed of will be proposed in the Budget 2026 to 2029 following the completion of a strategic review of the estate.

The Capital Programme sets out the range of projects that will be delivered in 2025. Some projects already in delivery from previous plans may incur some costs in 2025 due to unforeseen delays. Heads of expenditure established in previous plans will continue to allow for this.

Strategic focus: deliverability and renewal

This budget seeks to re-focus the Capital Programme to ensure that projects are deliverable and there is an improved balance between the need to develop new assets to deliver improvements and the requirement to sustain the existing asset base through replacement and refurbishment.

Deliverability

While affordability is always a key constraint on Government’s project ambitions, in recent years departmental spending on projects has significantly lagged behind available budgets due to internal and external capacity constraints. 

There is a limit to the capacity in the local economic sectors to deliver project work commissioned by Government, this has been a particular challenge in the local the construction market. Government’s internal resources are also finite, and this places limits on the number of projects that can be successfully developed and managed simultaneously.

After taking up Office in February 2024, the Council of Ministers recognised these limitations and through the Budget has sought to prioritise and re-profile projects to ensure that project plans are better matched to available capacity. This work will also help to reduce the need to draw on external consultants to provide additional resources to deliver projects.

Further work to refine the programme will continue over the next 12 months alongside longer-term capital planning with a view to establishing a more consistent annual tempo for capital spending. However, this Budget makes substantial strides towards a fully deliverable programme by ensuring that budgets for each of the 4 years are lower than £100 million, the previous peak level of capital spending on the core capital programme.

Renewal

The Common Strategic Policy recognises the need to revitalise St Helier and this priority is given life through new initiatives in this Budget including a bold new Youth Facility project the preferred site for which would support the wider redevelopment underway at Ann Street and give a new lease of life to the derelict Ann Street Brewery. The wider strategic theme of asset renewal also frames the new investment in this Budget. Successive capital programmes in recent years have tended to prioritise new, improvement-focused initiatives while there have been comparably lower levels of investment aimed at replacing and renewing core existing assets. In this Budget, the Council of Ministers has sought to bring an improved balance between projects intended to grow the asset base and those aimed at ensuring that the Government’s estate, digital systems, and wider public infrastructure are an appropriate condition to deliver their crucial purpose.

Decarbonisation of Government

Jersey’s 2050 net zero target, and interim 68% reduction in CO2 emissions by 2030, requires the Government to decarbonise heat within its Estate. We have begun this process, and from 2024 existing heating systems that break down or are at the end of their life will be replaced by low carbon systems wherever possible, and only low carbon heating systems will be specified for all new Government of Jersey-owned or leased property.

This will be factored into all future projects in the Capital Programme.

The capital programme

Investment in capital and other projects is important for ensuring the sustainability and improvement of the Island’s public services. Projects support the creation, improvement and extension of assets that enable service delivery.

The Capital Programme in this Budget proposes a total of £415 million for projects across 2025 to 2028 to invest in the Island’s critical infrastructure, the public sector estate, and Government’s information technology systems. It also enables the replacement of essential equipment and other assets.

Table 17 provides a breakdown of the key thematic areas of spend within the Capital Programme, each of which is set out in further detail in the sections that follow.

Table 17: Capital and Other Projects Programme

In addition to the programme summarised above, the States Assembly is asked to approve the proposed capital plans of the Trading Funds and States Funds.

Table 18: Scheme Funded from Trading Funds

Table 19: Scheme Funded from Social Security Fund

In addition, the following projects are funded through transfers from the Criminal Offences Confiscation Fund.

Table 20: Scheme Funded from Criminal Offences Confiscation Fund

Feasibility

Table 21: Feasibility

The Government of Jersey adopts a gateway approach to project investment decision making. Individual projects and their associated costs are committed to after detailed, feasibility work has been completed. This helps to ensure that funding allocated to projects through the Budget reflects the Government’s best estimate of likely resource requirements based on detailed policy and feasibility planning.

An allocation for feasibility is included in the Budget to provide funding to allow departments to undertake an assessment of new proposals and develop robust Outline Business Cases, which will become the basis for subsequently agreeing the individual budget allocations for new projects.

The allocation for feasibility funding is a grouped head of expenditure. As such, it provides funding for indicative projects but, reflecting the potential for policy and planning to evolve, allows for flexibility within the approved amount. This permits funding to be reallocated where projects progress faster or slower than forecast. To improve flexibility and prevent delay, emerging projects can also receive feasibility funding in year, subject to appropriate approvals. Arrangements for the management of feasibility funding are set out in the Public Finances Manual.

Table 22 sets out current feasibility plans for the Budget 2025 to 2028.

Table 22: Breakdown of G​rouped Head of Expenditure​

This Budget provides initial exploratory funding for the first in a series of projects required to deliver the Shoreline Management Plan, which is intended to enable the Island to manage the risk of coastal erosion and flooding linked to rising sea levels. Funding in this Budget is for the first project at Havre des Pas, feasibility work for which will commence in 2025.

Additional funding is provided for the department for Children, Young People, Education and Skills to undertake a feasibility project associated with the New Schools and Educational Developments including work on a new town-based school on the Gas Place site and the development of Mont à L’Abbé Secondary school.

Estates

Table 23: Estates (M) indicates a Major Project

Customer and Local Services Estate

In line with asset replacement plans, the Crematorium is due for refit and refurbishment to ensure this essential part of the Island’s infrastructure can continue to reliably deliver services to Islanders.

Children, Young People, Education and ​​​​Skills (CYPES) Estate

Funding for CYPES Major Projects is continued in this Budget:

• a new secondary school at Mont à L’Abbé – will expand the Island’s provision of care and learning for children with moderate to severe learning difficulties, creating an environment tailored to their needs. In combination with the primary school, this single campus will create a specialised hub to accommodate learning from ages 0-25 as well as respite care
  
• a new youth centre at Le Squez - will create a new community hub and space for young people in the community to use and enjoy. Providing a link to other youth centres across the Island and a safe place for children and young people to meet and socialise. The development of the Le Squez youth centre has been reprofiled to allow a new youth facility in St Helier to be brought forward in the earlier years of the Budget
  

Funding for other CYPES estate priorities is consolidated within 2 grouped heads of expenditure:

• new schools and Educational Developments provides funding for a town-based school at Gas Place in later years and also features new funding for a youth facility proposed for the Ann Street Brewery site
  
• upgrades to CYPES Estate supports a broader range of needs including efforts to improve the condition of the existing CYPES estate, improve facilities at La Passerelle, expand youth service facilities, and improve sports fields and play spaces. Table 24 shows an indicative allocation, with the grouped head of expenditure giving the flexibility to reprioritise as needed based on the urgency and readiness of projects in-year
  

Table 24: Upgrades to CYPES Estates - Breakdown of Grouped Head of Expenditure

Health and Community Services Estate

Funding for essential works within the HCS estate includes the development of specialist accommodation for Islanders with learnings difficulties and an extension of the rolling programme of renovations within the General Hospital. Due to the current hospital’s age, on-going refurbishment works are required to ensure the delivery of safe and modern services pending the construction of New Healthcare Facilities to meet the Island’s long-term health and care needs.

Infrastructure and Environment Estate

Investment in sport

This Budget provides funding to complete the decant of Fort Regent whilst enabling the development of a new sports centre at Oakfield as replacement venue for clubs and associations.

This investment is a significant early development that is connected to a wider programme of future investment that will be considered in future Budgets to deliver a comprehensive sport strategy for the Island.

Major refurbishments and upgrades

During 2023, the Department for Infrastructure and Environment undertook an extensive condition survey of Government-owned properties. The Major Refurbishments and Upgrades head of expenditure was established in the Government Plan 2024 to 2027 to provide a first tranche of funding to deliver urgent works identified by the survey.

In this Budget, Major Refurbishments and Upgrades are established as a grouped head of expenditure that will support programmes of works related to fire safety within the CYPES estate and upgrades at Highlands College, as well as wider needs across the estate identified by the recent condition survey. Table 25 provides an indication of the breakdown of funding across the grouped head of expenditure.

Table 25: Major Refurbishments and Upgrades: Breakdown of Grouped Head of Expenditure

Fort Regent Redevelopment

Fort Regent Redevelopment is established as a head of expenditure to transparently identify funding provided by Government in support of a programme of works, in conjunction with the Government’s chosen development partner, on this major publicly-owned asset.

Establishing the redevelopment project as a head of expenditure ensures that all work carried out and monies spent on the site are subject to the proper level of Ministerial and States Assembly oversight.

The Minister for Infrastructure and Council of Ministers will work with the States of Jersey Development Company to identify the appropriate funding and source of funding of feasibility work by no later than 31 March 2025.

It is recognised that the project will be iterative and involve extensive public engagement at all stages and that this and the necessary design and works will require significant funding.

The full redevelopment project – beyond feasibility – will require a further sustainable funding model. This model will be developed by the Minister to the extent that the necessary funding will be included in the Proposed Budget 2026 to 2029 to be brought to the Assembly for approval.

Land Acquisition

The Government’s land and property holdings are currently under review, and it is expected that there will be need for a strategic rebalancing of Government of Jersey owned properties through disposals and acquisitions to ensure that Government's land and estates portfolio is optimised to support the delivery of the Island's needs.

The Land Acquisition head of expenditure exists to allow the Government to make strategic purchases. It is expected that in the near term this head of expenditure will be used to secure sites relating to the development of a new town-based school at Gas Place. No funding has been allocated in the plan, as it is expected that any purchases would be funded through the application of receipts of one-off income, asset disposal proceeds and land swaps.

Other Estate Projects

This includes budgets for the implementation of the Discrimination Law, Safeguarding and Regulation of Care across the Government Estate, and construction of new skatepark facilities.

Table 26: Other I&E Estate Projects - Breakdown of Grouped Head of Expenditure

Justice, Home Affairs and States of Jersey Police Estate

Funding continues in this Budget for the construction of a new Ambulance, Fire and Rescue Headquarters as well as a new Army and Sea Cadet Headquarters. Budgets for these projects have been updated to reflect revised timescales and on-going work to determine the best approach for redevelopment of the former Police Headquarters at Rouge Boullion.

Funding from the Criminal Offences Confiscation Fund (COCF) is provided to enable the completion of the Sexual Assault Referral Centre at Dewberry House and improvements to HM Prison La Moye.

Infrastructure

Table 27: Infrastructure (M) indicates a Major Project

Infrastructure Rolling Vote and Public Realm

The Infrastructure Rolling Vote and Public Realm programme is the most significant programme of infrastructure investment in the Budget.

The Infrastructure Rolling Vote is a programme of continual improvements to maintain key infrastructure such as the Island’s roads, drains and sea defences, which need continual maintenance and replacement over time. This is critical ongoing activity that is integral to the continued functioning of critical infrastructure that Islanders depend on.

Funding for Public Realm is included within the rolling vote, to allow for the continual improvement and safety of roads, paths, and public spaces in and around St Helier and across the Island. This also comprises urban renewal work for St Helier including Havre des Pas.

Funding for Public Realm has not been fully utilised in recent years so, as part of work to ensure the Capital Programme is set at a deliverable level, this has been adjusted to match the highest level of annual expenditure of projects successfully delivered by the Department for Infrastructure and Environment. 

The revitalisation of St Helier is one of the Council of Ministers’ Common Strategic Policy Priorities and this change reflects a shift in strategy away from smaller scale redevelopment towards more substantial projects such as the proposed new Youth Centre and other initiatives that will be considered in subsequent Budgets subject to affordability.

An allocation of £100,000 will be made within the Funding for Public Realm budget to prioritise work on the West of Island Planning Framework, as referenced in Strategic Proposal 4 in the Bridging Island Plan 2022 to 2026.

Existing resources will be utilised to take forward the work to deliver a Play Strategy for Jersey, in conjunction with the Minister for Children and Families, the Minister for Education and Lifelong Learning, and the Minister for Sustainable Economic Development, as detailed within Proposal 29 of the Bridging Island Plan 2022 to 2025, with the work of the Jersey Youth Parliament ‘Right to Play’ Group and of the previous Play Strategy Steering Group to be incorporated into the final Strategy.

Across the period 2025 to 2028, up to £500,000 within the Infrastructure Rolling Vote (Public Realm) will be used to support St Helier’s Neighbourhood Improvement Area programmes, provided always that additional matching funding is contributed by the ratepayers of the Parish of St Helier to meet the costs of the relevant projects.

Sewage Treatment Works

Funding continues in this Budget to meet the final costs related to the replacement of the Sewage Treatment Works at Bellozanne. While work on the original project has now been completed, this funding supports the delivery of additional components that were extensions to the project. It is envisaged all works will conclude in 2025 bringing this long-term project to a close.

Liquid Waste Key Infrastructure

This Budget provides additional funding for the Liquid Waste Key Infrastructure project that seeks to deliver the Liquid Waste Strategy. The project will expand capacity on the Island’s surface water and foul sewage drainage network in order to support the housing development needs identified in the Bridging Island Plan and support the policy response to the Island’s housing crisis. It also delivers essential improvements that need to be made to increase the pumping station capacity and replace ageing pipe infrastructure to enable it to cope with increased volumes.

The Scheme needs in excess of £55 million over four years with an on-going investment of £5 million to £10 million likely to be required thereafter. Given the scale of investment needed, the Government Plan 2024 to 2027 provided an initial £15.6 million for the project and indicated that funding for future years would require the introduction of a new funding mechanism. 

This Budget provides an additional £5.7 million to permit the continuation of the project while work on an appropriate funding model continues. Investment needs for 2027 and beyond are intended to be met following the implementation of a new funding model once it has been agreed.

Shoreline Management Plan: Havre Des Pas

For the first time, this Budget includes estimated costs for the implementation of the coastal flood alleviation project at Havre des Pas, which forms part of the Shoreline Management Plan. Detailed feasibility work for the project will commence in 2025 and help to determine the precise form and cost of the project. The current Strategic Outline Case anticipates extensive land reclamation and the construction of new sea defences that would require investment in excess of £70 million between 2028 and 2034. The Assembly will be asked to establish the project as a Major Project in subsequent budgets once feasibility work has been completed and an Outline Business Case developed.

Further Listed Infrastructure Projects

Heads of expenditure are also included for Countryside Access and Signage, Road Safety and Planning Obligation Agreements. Funding for these heads of expenditure is generated from programme underspends in the case of countryside projects, and from income from car park trading funds and third-party planning applications for developments respectively for the latter projects.

Funding is provided to a head of expenditure for the replacement of Springfield football pitch and lights.

Other Infrastructure

A Grouped head of expenditure for all other infrastructure projects includes funding for the La Collette Waste Site, and the extension of the Island’s sewage network. There is additional investment in Parks and Gardens, upgrading our equipment and open public spaces.

Table 28: Other Infrastructure Projects - Breakdown of Grouped Head of Expenditure

Information Technology

Table 29: Information Technology  (M) indicates a Major Project

Information Technology Investment

This Budget continues support for the development of the Government’s digital systems, which has been a consistent strategic imperative for successive Governments. This Budget aims to prioritise projects intended to address critical risks, modernising the Government’s digital infrastructure, and ensuring the reliability of frontline systems. In support of this objective, the Digital Services Platform Major Project has been re-scoped to focus on core functionality needed to support other systems. 

From 2025 and beyond, the delivery of the Digital Services Platform shall be built and designed following open design principles. A new grouped head of expenditure is created for the IT Major Upgrades and Replacement Programme, and additional investment is provided to complete the Digital Care Strategy, deliver an Electronic Patient Record system for mental health services, and upgrade the hospital Wi-Fi network.

Cyber Programme 2.0

Investment in the Cyber Security 2.0 Major Project continues in the Budget. The project seeks to ensure that Government is able to adequately respond to the heightened cyber threat related to the new geopolitical risk landscape. It builds on the successful implementation of the earlier Cyber Programme.

Revenue Transformation Programme Phases 3 and 4

The Revenue Transformation Programme Phases 3 and 4 are Major Projects that will continue in the Capital Programme. They enable adaptations for digital tax systems to take account of changes in tax legislation including the adoption of independent taxation, changes in respect of the prior-year basis, new rules related to economic substance and the requirement for automatic exchange of tax information internationally.

IT Major Upgrades and Replacements

In recent years, the Government has invested significantly in technology that has improved Islanders’ ability to interact with Government online, empowered hybrid working patterns to reduce demand for office space and driven increased productivity across the public service. This investment in new technology has not in all cases been accompanied by investment in the infrastructure and network that supports government systems. 

More work is also needed to rationalise and upgrade the range of applications in use by government departments. This Budget provides significant new investment in a programme intended to upgrade government’s aging digital infrastructure, simplify digital systems and improve the reliability of the IT network across government. To support the delivery of this programme of work, the IT Major Upgrades and Replacements grouped head of expenditure has been established and Table 30 sets out the indicative allocation for each of the underlying projects.

Table 30: IT Major Upgrade and Replacement - Breakdown of Grouped Head of Expenditure

Investment in HCS Digital Priorities

Additional funding is proposed in this Budget to complete projects being delivered under the Digital Care Strategy including further releases of the Hospital Electronic Patient Records system and work related to the development an e-referrals system. A new project, Digital Systems Improvements, has also been established to develop an electronic patient record system for mental health and care services, and funding is proposed to upgrade aging Wi-Fi infrastructure in the General Hospital.

Replacement assets and minor capital

Table 31: Replacement Assets and Minor Capital

Replacement asset funding is provided to departments to replace key operational equipment on an annual basis to ensure our assets are maintained at an appropriate standard for the ongoing delivery of public services.

Funding is generally provided at a consistent level that is aligned with the average replacement cycles as equipment reaches the end of its safe useful life and needs replacing for newer equipment. Specific funding will also be provided in 2025, for the replacement of the Fisheries Protection Vessel.

Changes to project approvals

In addition to cash flow for 2025, the Budget approves the total expenditure for projects designated as Major Projects including any updates to existing Major Project approvals that may be necessary. The total approvals for new and existing Major Projects in this plan are as set out in Table 32.

Table 32: Major Projects

For projects that are not classified as Major Projects, the Budget approves only the cash flow requirement for 2025. However, to provide transparency over the total intended cost of projects, Table 33 sets out the total intended budget for other projects and indicates any changes from previous plans.

Table 33: Other Projects

Certain heads of expenditure within the Capital Programme are categorised as ‘rolling votes’. They provide an annual source of funding for asset upgrades, replacement and refurbishment to ensure our assets remain at an appropriate standard. Table 34 sets out the changes to the level of funding provided for rolling votes in this Budget.

Table 34: Rolling Votes

Use of public land for public benefit

New development on public land, whether that is owned by Government or a States’ Owned Entity, creates value that can be reinvested to benefit the public. Recognising that housing is increasingly unaffordable for many islanders, the Bridging Island Plan includes a policy expectation that:

"Where States of Jersey or States-owned companies’ land is brought forward for the development of new homes, these shall be for affordable homes unless it has been otherwise approved that the development needs to specifically provide open market homes, particularly where this is required to ensure the viability of public realm and community infrastructure delivery, in line with an approved Government Plan."

The creation of affordable homes brings real public benefits to Jersey. They help create an inclusive society, where all children can get a good start in life and where our family and friends can live and age well.

A broad strategy to create and maintain affordable homes is in place and is focused on direct support to Andium Homes and to build more new affordable homes for Islanders, and a range of policy steps to increase the use of assisted purchase products, such as shared equity schemes, in the open market. Government invests in affordable housing in a number of ways, for example:

• the £10 million that has been invested in the “First Step” assisted home ownership scheme
  
• £250 million of public borrowing that provides stable, low-cost financing to Andium Homes, and has supported other housing trusts
  
• affordable homes for rent are, on average, charged at less than 80% of market rates
  
• affordable homes for purchase, such as through the Andium Home Buy scheme and the minimum 15% open market homes delivered on new large housing sites being provided with some form of assistance to buy, ensure that new homes can be accessed more affordably
  
• land has been made available through the planning process to ensure more affordable homes can be built, whether on rezoned sites or in developments on public land
  

In assessing whether land and sites that are currently owned by the Government of Jersey, are developed for housing, there is an ongoing assessment via the Estates Strategy. This process determines whether these sites are needed for public service delivery or can be released. 

Once a site has been identified for housing, government must consider the need to provide affordable homes, as well as the need to raise sufficient capital to be reinvested in other areas that benefit the public, such as new infrastructure or public realm improvements. 

When land is used to build affordable homes, a portion of the market value that would otherwise be achieved is forfeited by the public, limiting the amount that can be reinvested to meet other public needs. Because of this, it is sometimes appropriate to build open market homes to ensure the best overall value for the public is realised.

The table below sets out sites in public ownership that are due to deliver housing and confirms whether the value created will be used to subsidise the creation affordable homes, or whether a portion of open market homes is expected to be included and, if so, what wider public benefit the value created from those homes will be used for. There will always be a very minimum of 15% of the housing units created that will be made available with assisted purchase products.

Sites to be developed in between Government Plans

It is important to recognise that States of Jersey or States’-owned companies land may be identified for the development of new homes in between Government Plans, and it is considered important that housing delivery is not unacceptably slowed as a result of misalignment with the Government Plan annual cycle.

In the event of a housing development making progress outside of the Government Plan, Ministers will work together to ensure that the development is proposed entirely for affordable homes and, in the case of this not being considered possible, that there is both sufficient rationale for deviating from this policy, whilst ensuring the development will achieve a maximised allocation of units for assisted purchase schemes. 

a. in exceptional circumstances to insulate the Island’s economy from severe structural decline such as the sudden collapse of a major Island industry or from major natural disaster

b. if necessary, for the purposes of providing funding (up to £100 million) for the Bank Depositors Compensation Scheme established under the Banking Business (Depositors Compensation) (Jersey) Regulations 2009, including to meet the States contribution to the Scheme and/or to meet any temporary cash flow funding requirements of the Scheme

c. to support the development of future healthcare facilities and the borrowing costs for such work, in line with a financing strategy agreed by the Assembly

d. as a holding Fund for any or all monies raised through external financing until required, and for any monies related to the repayment of debt raised through external financing, with the monies used to offset the repayment of debt, as and when required

e. in accordance with Article 24 of the Public Finances (Jersey) Law 2019, where the Treasury and Resources Minister is satisfied that there exists an immediate threat to the health or safety of any of the inhabitants of Jersey, to the stability of the economy in Jersey or to the environment, for which no other suitable funding is available

i. Reduce the level of transfers from the Strategic Reserve to fund the NHF, or to repay previous transfers made (up to £277 million). This restores the previous value of the Strategic Reserve.

ii. Further Replenish the Stabilisation Fund (up to a balance of £100 million) to insulate the Island from the impacts of the Economic Cycle.

iii. Reducing Borrowing for the NHF (up to £500 million) – to ultimately improve the reserve position

iv. Make further transfers into the Strategic Reserve to achieve the target as a proportion of GVA faster

Glossary of terms

Appendix 2: Proposition and summary tables 

The States are asked to decide whether they are of opinion, to receive the Government Plan 2025 to 2028 (entitled “Budget 2025 to 2028”) specified in Article 9(1) of the Public Finances (Jersey) Law 2019 (“the Law”) and specifically: 

(a) to approve the estimate of total States income to be paid into the Consolidated Fund in 2025 as set out in Appendix 2 – Summary Table 1 to the Report, which is inclusive of the proposed taxation and impôts duties changes outlined in the Government Plan, in line with Article 9(2)(a) of the Law, except that the total estimate for 2025, 2026, 2027, 2028 Vehicle Emissions Duty (VED) shall be increased to reflect increased duties for non-commercial vehicles with CO2 mass emissions above 176 grams, with the relevant figures in Appendix 2 – Summary Table 1 updated in line with the following table, and subsequent figures updated accordingly:

	2025 Estimate (£000)	2026 Estimate (£000)	2027 Estimate (£000)	2028 Estimate (£000)
Impôt Duties Vehicle Emissions Duty (as amended)	3,190	3,045	2,906	2,783

(b) to approve the proposed Changes to Approval for financing/borrowing for 2025, as shown in Appendix 2 – Summary Table 2 to the Report, which may be obtained by the Minister for Treasury and Resources, as and when required, in line with Article 9 (2)(c) of the Law, of up to those revised approval amounts

(c) to approve the transfers from one States fund to another for 2025 of up to and including the amounts set in Appendix 2 – Summary Table 3 in line with Article 9(2)(b) of the Law, except that proposed transfer of monies from the Consolidated Fund to the Climate Emergency Fund shall be increased in 2025, 2026, 2027 and 2028 to reflect increased duties for non-commercial vehicles with CO2 mass emissions above 176 grams, with the relevant figures in Appendix 2 – Table 3 updated in line with the following table, and subsequent figures updated accordingly:

Transfer from	Transfer to	2025 Proposed	2026 Proposed	2027 Proposed	2028 Proposed
Consolidate​d Fund	Climate Emergency Fund	£4,358	£4,313	£4,269	£4,226

(d) to approve a transfer from the Consolidated Fund to the Stabilisation Fund in 2025 of up to £25 million, subject to a decision of the Minister for Treasury and Resources based on the availability of funds in the Consolidated Fund as at 31 December 2024 in excess of the estimates provided in this plan, or from budgeted underspends identified before 31 December 2025

(e) to approve a transfer from the Consolidated Fund to the Agricultural Loans Fund in 2025 of up to £2 million, subject to a decision of the Minister for Treasury and Resources based on availability of funds in the Consolidated Fund as at 31 December 2024 in excess of estimates provided in this plan, or from budgeted underspends identified before 31 December 2025

(f) to approve each major project that is to be started or continued in 2025 and the total cost of each such project and any amendments to the proposed total cost of a major project under a previously approved Government Plan, in line with Article 9(2)(d), (e) and (f) of the Law and as set out in Appendix 2 – Summary Table 4 to the Report

(g) to approve the proposed amount to be appropriated from the Consolidated Fund for 2025, for each head of expenditure, being gross expenditure less estimated income (if any), in line with Articles 9(2)(g), 10(1) and 10(2) of the Law, and set out in Appendix 2 – Summary Tables 5(i) and (ii) of the Report, except that: 

a. in Summary Table 5(i), the head of expenditure for Education and Lifelong Learning should be increased by £5,862,000 with an equal decrease to Children and Families head of expenditure”

b. in Summary Table 5(i):

(i) the Head of Expenditure for the Cabinet Office should be reduced by £86,215

(ii) the Head of Expenditure for Customer and Local Services should be increased by £86,215 to support the funding of the Connect Me project.”

c. in Summary table 5(ii), after the Head of Expenditure for Major Refurbishment and upgrades, there should be inserted Heads of Expenditure entitled Fort Regent Development with an allocation of £0 to be shown against the new Head of Expenditure”

(h) to approve the estimated income, being estimated gross income less expenditure, that each States trading operation will pay into its trading fund in 2025 in line with Article 9(2)(h) of the Law and set out in Appendix 2 – Summary Table 6 to the Report

(i) to approve the proposed amount to be appropriated from each States trading operation’s trading fund for 2025 for each head of expenditure in line with Article 9(2)(i) of the Law and set out in Appendix 2 – Summary Table 7 to the Report

(j) to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2025 as set out in Appendix 2 – Summary Table 8 to the Report, except that the proposed transfer of monies from the Consolidated Fund to the Climate Emergency Fund shall be increased in 2025 to reflect increased duties for non-commercial vehicles with CO2 mass emissions above 176 grams, with the relevant figures in Appendix 2 – Table 8 updated in line with the following table, and subsequent figures updated accordingly:

£’000		2025 Estimate (as amended)
Opening balance		5,950
Transfer from the Consolidated Fund	Climate Emergency Fund	4,358
Expenditure		(8,346)
Closing balance		1,962

(k) to approve an updated and consolidated policy of the Strategic Reserve Fund as follows:

“The Strategic Reserve Fund, established in accordance with the provisions of Article 4 of the Public Finances (Jersey) Law 2005, is a permanent reserve only to be used:

i. in exceptional circumstances to insulate the Island’s economy from severe structural decline such as the sudden collapse of a major Island industry or from major natural disaster.

ii. if necessary, for the purposes of providing funding (up to £100 million) for the Bank Depositors Compensation Scheme established under the Banking Business (Depositors Compensation) (Jersey) Regulations 2009, including to meet the States contribution to the Scheme or to meet any temporary cash flow funding requirements of the Scheme

iii. to support the development of future healthcare facilities and the borrowing costs for such work, in line with a financing strategy agreed by the Assembly

iv. as a holding fund for any or all monies raised through external financing until required, and for any monies related to the repayment of debt raised through external financing used to offset the repayment of debt, as and when required

v. in accordance with Article 24 of the Public Finances (Jersey) Law 2019, where the Minister for Treasury and Resources is satisfied that there exists an immediate threat to the health or safety of any of the inhabitants of Jersey, to the stability of the economy in Jersey or to the environment, for which no other suitable funding is available.”

(l) to approve the transfer to the Strategic Reserve of the amounts due as a result of the move from prior-year basis taxation after 31 December 2025, as and when these payments are received (estimated at £280 million).

(m) in relation to the new Government Headquarters (office), to approve:

i. the exercising of the option to acquire the new Government Headquarters (estimated at £91 million), by the Public of the Island, in line with the pre-agreed terms

ii. the acquisition of the new Government Headquarters as an investment of the Social Security (Reserve) Fund (including authorising the meeting of expenses incurred in connection with the acquisition)

iii. the subsequent leasing of the new Government Headquarters by the Public of the Island from the Social Security (Reserve) Fund, with commercial terms to be agreed between the Minister for Infrastructure (on behalf of the Public) and Minister for Social Security and the Minister for Treasury and Resources (both on behalf of the Fund)

(n) in relation to the new Government Headquarters, to authorise H.M. Attorney General, the Greffier of the States, the Ministers for Infrastructure, Social Security and Treasury and Resources, and the Public of the Island, to enter into such arrangements, including financing, and pass any contracts as are necessary to put into effect paragraph (o)

(o) to approve, in accordance with Article 9(1) of the Law, the Government Plan 2025 to ​​2028, as set out in the accompanying Appendix to the Report, except that:

(i) on page 14, after the words “support the ongoing well-being of Islanders”, there should be inserted the following words:

“As part of the prioritisation of community well-being, the Social Security department has allocated £391,215 of funding to the Connect Me project for the year 2025, to ensure the continuation of the project and support the introduction of social prescribing.”.

(ii) in the section “Vehicle Emissions Duty” on page 32 after the words “the highest three emission bands will be increased by” replace the figures “5%, 10% and 15%” with the figures “5%, 15% and 25%” with the relevant figures in Table 5 and Table 6 updated in line with the following figures:

CO2 Mass emissions (grams)	2024 Actual	2025 proposed (as amended)	Proposed Increase %
0	0	0	-
1 - 50	35	35	-
51 - 75	73	73	-
76 - 100	240	240	-
101 - 125	422	422	-
126 - 150	715	715	-
151 - 175	1,367	1,435	5%
176 - 200	4,200	4,830	15%
201 or more	7,937	9,921	25%

£’000	Proposed vs Forecast (as amended)	Proposed vs no change (as amended)
Vehicle Emissions Duty increases	301	301

(iii) on page 33 for the figure “40,000” there should be substituted “20,000””.

(iv) on page 38 –

(a) after the words “improve the competitiveness of the Island” there should be inserted the words “with a specific focus on funding the delivery of the Sustainable Finance Action Plan and supporting the transition to a net-zero economy”

(b) after the words “ease of doing business here.” there should be inserted the words “Ensuring that funding is made available to support the transition to a net-zero economy through the promotion of Sustainable Finance. This will support these goals and provide a clear action plan and delivery framework, embedding sustainability into financial practices.”

(c) after the words “seeking to reduce operating costs.” there should be inserted the words “Specifically, making funding available for drivers to a net-zero economy identified and delivered through the Sustainable Finance Action Plan which will embed sustainability into financial practices and business practices and support the decarbonisation of the finance industry.”

(v) on page 41, after Table 10, there should be inserted the words “Within the Revenue Head of Expenditure for the Cabinet Office, funding for Statistics Jersey will be increased by £78,000, through the reallocation of other departmental expenditure within the Cabinet Office.””

(vi) on page 42 after the words “, for indicative purposes.” there should be inserted the following new paragraph:

“The establishment of a Public Services Ombudsperson, as approved in principle by the States Assembly in March 2018 [P.32/2018] and progressed by the preceding Government, remains under review by the Council of Ministers. The Complaints Panel is itself conducting a review of its own procedures and processes. In July 2024, the Jersey Law Commission published a report entitled “Keeping the Complaints Panel or creating the Ombudsperson”, which worked through the different choices about the basic design of Jersey’s independent complaints handling body with the aim of taking an informed decision as to whether to keep a reformed Complaints Panel or go forward with the Ombudsperson. Subsequent to that report, a consultation paper was published. The Council of Ministers will fully consider the consultation results published by the Jersey Law Commission and Complaints Panel respectively when considering the appropriate way forward. Detailed proposals will be brought forward in 2025 for States Assembly approval and also detailed in the successive Government Plan.”

(vii) on Page 43, after the words “This investment will meet the cost of enhancing grants to students both in distance learning and in person learning.” should be inserted the words “We will also review the scheme available for apprenticeships and increase the funding and support available.”.

(viii) “except that in the section “Other Revenue Expenditure Growth Spending” on page 45 after the words “funding of In Vitro Fertilisation, recently approved by the Assembly” there should be inserted the following new paragraph:

“Funding for the Termination of Pregnancy (Jersey) Law 1997 Amendments workstream will be reviewed to ensure that both policy and law drafting resource for this workstream is prioritised by the Council of Ministers in the 2025 Legislative Programme and in order for amendments to the current outdated law to be lodged prior to the end of 2025.”

(ix) on page 46, under the subtitle Formula Driven Growth, for the words:

“As budgets for Arts, Heritage and Culture have now been increased to 1% of Net Revenue Expenditure, in future, this level will now be maintained and increased by RPI.’

substitute the words:

‘Following approval of Funding for Culture, Arts and Heritage (P.69/2024), the Government continues the commitment to maintain funding to this sector based on 1% of overall States revenue expenditure.”

(x) on page 57, after Table 25: Major Refurbishments and Upgrades – Breakdown of Grouped Head of Expenditure, there should be inserted the following words:

“Fort Regent Redevelopment

Fort Regent Redevelopment is established as a head of expenditure to transparently identify funding provided by Government in support of a programme of works, in conjunction with the Government’s chosen development partner, on this major publicly-owned asset.

Establishing the redevelopment project as a head of expenditure ensures that all work carried out and monies spent on the site are subject to the proper level of Ministerial and States Assembly oversight.

The Minister for Infrastructure and Council of Ministers will work with the States of Jersey Development Company to identify the appropriate funding and source for funding of feasibility work by no later than 31 March 2025.

It is recognised that the project will be iterative and involve extensive public engagement at all stages and that this and the necessary design and works will require significant funding.

The full redevelopment project – beyond feasibility – will require a further sustainable funding model. This model will be developed by the Minister to the extent that the necessary funding will be included in the Proposed Budget 2026 to 2029 to be brought to the Assembly for approval.”

(xi) on Page 59, after the words “in subsequent Budgets subject to affordability.” there should be inserted the following new paragraph:

“An allocation of £100,000 will be made within the Funding for Public Realm budget to prioritise work on the West of Island Planning Framework, as referenced in Strategic Proposal 4 in the Bridging Island Plan 2022 to 2025.””

(xii) on Page 59, after the words “in subsequent Budgets subject to affordability.” there should be inserted the following new paragraph:

“Existing resources will be utilised to take forward the work to deliver a Play Strategy for Jersey, in conjunction with the Minister for Children and Families, the Minister for Education and Lifelong Learning, and the Minister for Sustainable Economic Development, as detailed within Proposal 29 of the Bridging Island Plan 2022 to 2025, with the work of the Jersey Youth Parliament ‘Right to Play’ Group and of the previous Play Strategy Steering Group to be incorporated into the final Strategy.”

(xiii) on Page 59, after the words “in subsequent Budgets subject to affordability.” there should be inserted the following new paragraph –

“Across the period 2025 to 2028, up to £500,000 within the Infrastructure Rolling Vote (Public Realm) will be used to support St Helier’s Neighbourhood Improvement Area programmes, provided always that additional matching funding is contributed by the ratepayers of the Parish of St Helier to meet the costs of the relevant projects.”

(xiv) on page 61, after the words “support other systems.” there should be inserted the words “From 2025 and beyond, the delivery of the Digital Services Platform shall be built and designed following open design principles.”

(p) in relation to the new Government Headquarters, to authorise H.M. Attorney General, the Greffier of the States, the Ministers for Infrastructure, Social Security and Treasury and Resources, and the Public of the Island, to enter into such arrangements, including financing, and pass any contracts as are necessary to put into effect paragraph (o).

(q) to approve, in accordance with Article 9(1) of the Law, the Government Plan 2025 to 2028, as set out at Appendix 3 to the Report.

Council of Ministers

Summary Table 1: States Income

Summary Table 2: Borrowing for 2025

Summary Table 3: Transfer of monies between States Funds

Summary Table 4: Major Projects

Summary Table 5i: Revenue Heads of Expenditure​

Summary Table 5ii: Capital and Other Projects Heads of Expenditure

Summary Table 6: Trading O​perations Revenue Heads of Expenditure​

Summary Table 7: Trading Operations Project Heads of Expenditure

Summary Table 8: Climate Emergency Fund

Appendix 3: Supplementary financial tables

Table 54: Revenue Expenditure Growth

Table 55: Savings Proposals

Table 56: Changes to Revenue Heads of Expenditure 2024 to 2025

Table 57: Changes to Revenue Heads of Expenditure 2025 to 2026

Table 58: Changes to Revenue Heads of Expenditure 2026 to 2027

Table 59: Changes to Revenue Heads of Expenditure 2027 to​ ​​2028

Appendix 4: Administrative tax measures

Additional administrative and technical measures to be included in the Finance Law (debated alongside the Budget)

Clarifying the category of late filing penalties for membership organisations and professional associations

The Income Tax Law will be amended to clarify that a membership organisation or professional association is subject to the £100 per month penalty rate for late filings and is not eligible for penalty abatement, regardless of whether it is incorporated or not.

Formalising the deductibility of accounting expenses

The accounting fees that businesses pay can benefit both the business’s operations and the owners and stakeholders personally. As it can be difficult to apportion fees that are “wholly and exclusively” for the purposes of trade, Revenue Jersey has accepted all accounting fees as permittable deductions as a matter of practice. To provide certainty to businesses, this practice will be legislated.

Deleting Article 52A on energy-saving items

Article 52A of the Income Tax Law, which permitted a deduction from property income for expenditure on energy-saving items during the assessment years 2010 to 2012, will be deleted as it is spent.

Expanding group relief for mixed-rate corporate groups

Currently, only groups consisting exclusively of either 0% or 10% companies can benefit from group relief under the Income Tax Law. The group relief provisions will be amended to allow corporate groups containing both 0% and 10% companies to offset gains with losses across members taxed at the same rate. The change will ease administration for mixed groups.

Stamp duty for registering a will

The Stamp Duties and Fees (Jersey) Law 1998 will be updated to reflect the increased rates for properties over £2 million introduced in last year’s Government Plan 2024 to 2027.

GST on imports from unregistered online retailers

The GST Law will be clarified allowing Revenue Jersey and the Jersey Customs and Immigration Service to ensure there is effective collection of GST on imports where there are uncooperative online retailers.

Exempting the Jersey Resolution Authority from GST

The GST Regulations will be amended to exempt the Jersey Resolution Authority (JRA) from GST.

Small pot pensions

Following an amendment to Government Plan 2024 to 2027, which proposed a phased reduction in the ‘small pot’ pension limits, the second and final phase of a reduction of the small pot pensions limit will be implemented. This will reduce the commutable value for approved schemes from £15,000 to £10,000. The maximum commutable value for pension holders aged 60 years or older continues to be £50,000.

Rental losses carried forward

Article 52 of the Income Tax Law will be amended to clarify the current practice that Schedule A rental income losses can only be carried forward and cannot be carried back.

Relocation expenses

Relocation expenses paid by an employer to an employee to help cover the costs of relocating to Jersey are treated as an exempt benefit-in-kind. In addition, there is an exempt ‘disturbance allowance’ of £7,500 but ‘disturbance allowance’ itself is not defined. The current language is being clarified to ensure that the £7,500 is only treated as exempt if it is paid by the employer in respect of the costs of relocating to Jersey.

Clarification to ISE fee regime

A change will be made in the International Services Entities (ISE) Regulations to clarify that the Regulations do not impose multiple fees on the same regulated activity conducted by an entity.

Compensatory allowance formula

The compensatory allowance formula will be revised before it comes into effect in the year of assessment 2026. The reference to “qualifying income” will be changed to refer to “earned income”.

Childcare tax relief

The transitional provisions that apply to married couples and civil partners for the year of assessment 2025 will be updated to include the higher earned income threshold, for the purposes of calculating the childcare tax relief due.​