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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Treasury Minister's statement on spending review

01 February 2010

The Council of Ministers has been reviewing spending forecasts and considering how to deal with projected deficits. Ministers agreed they are all determined to control States spending and to guard against future structural deficits.

 

All ministers are aware of the major challenges the island is facing. Those challenges will require:

  • a review of those services which are essential or highly desirable
  • a determination to deliver services efficiently
  • a wider implementation of user pays principles
  • tax increases

       

      The comprehensive spending review (CSR) is designed to deliver the first three elements of this and the Fiscal Strategy review is designed to deliver the fourth.

       

      The CSR will analyse all areas of States spending to find ways to save money, to understand the implications of any proposed savings and to target improvements.

       

      There will be 6 major in-depth reviews looking at Terms and Conditions of Employment; Court and Case costs; Health and Social Services; Education Sport and Culture; Social Security; and Home Affairs. But all States services will be asked to find savings.

       

      The CSR will be asked to seek savings of £50 million from the 2011-2013 business plans. Some of these savings would be used to create a contingency fund for unforeseen expenses, to fund any changes needed to make savings and to fund some growth in essential services. Targeting this level of savings will break the historical cycle of annual spending increases above previous forecasts.

       

      Before a decision can be made on the split between savings and taxes, a thorough review of spending will identify all the efficiency savings possible. The final decision on the balance needed of savings and taxes will be a political choice taken later in the year as part of the Budget debate.

       

      The CSR will be complemented by a new 3 year spending control process, which will not only limit unforeseen increases, but encourage greater efficiency and reward those services which are most successful at controlling costs.

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