18 May 2006
News Release
The States accounts published today (Thursday 18 May 2006) confirm the upbeat message of this year’s Budget showing that, despite continued investment in essential services like health and social security benefits, overall public spending has been constrained. In fact, for the second year in succession total net revenue expenditure grew by less than the rate of inflation, representing a real terms reduction in States spending.
On a basis consistent with, and allowing comparison to, the 2005 Budget, the States incurred a surplus of £3m for 2005 as opposed to the £6m deficit originally forecast. The improvement arose largely from Income Tax receipts totalling £7m more than budgeted.
The growth in spending of only 1.5% has helped contribute to a more confident picture overall, said Treasury and Resources Minister Senator Terry Le Sueur, because it has undoubtedly influenced the continued fall in the underlying rate of inflation, and helped to boost business confidence in Jersey.
The States has continued to invest in the core service areas of Health, Education and Social Security with more than 70% of the total Non-Trading Committees net revenue expenditure of £423m being spent on these services
In 2005 Income tax receipts increased by 3.9% on 2004 levels to £377m, receipts from Impôts duties remained broadly constant at £49.8m whilst income from Stamp Duties rose by 25% to £19m aided by a small number of high value transactions.
This year, the format for presenting the public accounts has changed to give greater transparency and accountability. This includes greater recognition of the States net liabilities in its Defined Benefit Pension Schemes. This includes the Jersey Teachers’ Superannuation Fund and the Jersey Post Office Pension Fund and it also includes a more detailed breakdown of public sector salaries over £100,000.
The accounts also contain a one off exceptional charge of £123m in recognition of the Public Employees Contributory Pension Scheme pre 1987 past service liability. After recognising these pension liabilities the States still had net assets of over £1.3 billion.
The above matters are a further endorsement of the States commitment to both improving accountability to the public and other stakeholders, and also the commencement of a major project to deliver accounts which more fully comply with the UK Generally Accepted Accounting Policies.
States Treasurer Ian Black said: “This document shows that we are taking our commitment to becoming more transparent and more accountable extremely seriously. This is part of a major project to deliver accounts which more fully comply with UK generally accepted accounting policies. This enables better comparisons between the costs of Jersey’s public sector services and other jurisdictions and means we will in future see more accurate reporting of States assets.”
Coinciding with publication of the States Accounts, the Chief Minister’s Department has produced a report giving more information than has been seen before on high earners in the public sector. This shows that the highest-paid individuals are Crown Officers, hospital consultants and the chief executive of the States. The report also shows that in real terms, the number of public sector staff earning above £70,000 has fallen in the last 12 months.
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Notes to Editors:
For further information, please contact Senator Le Sueur, Minister for Treasury and Resources, on 864993; or
Treasurer of the States, Ian Black, on 440215; or
Communications Manager Katie Le Quesne 0n 440430.
gov.je