​The government has published the States of Jersey Annual Report and Accounts for 2018. The report shows that the organisation maintained a strong closing balance sheet with net assets of £6.8 billion, as well as experiencing an increase in expenditure – up £80 million (7%) on 2017.

The report details a healthy balance on the Strategic Reserve and Social Security Funds and a robust three-to-five-year investment outlook. This is despite the write-off costs associated with the hospital project, and a drop in investment valuations of £95 million, consistent with market performance, and representing the single biggest impact on group financial performance.

The report goes on to explain that the government invests over the long-term and while this drop may seem concerning, it actually follows a run of strong annual returns. The long-term investment outlook remains positive, but there remains considerable short-term volatility, demonstrated by the valuation losses experienced being recouped by the end of February this year.

Some of the key figures in the report include:

• General Revenue Income, as approved by the States Assembly, was £799 million, which is £32 million more than in 2017. This was mainly due to increases in income tax revenue, GST and stamp duty

• including the results of States Owned Entities and major funds, including the Social Security Funds, spending increased by 7%, from £1,167 million in 2017 to £1,247 million in 2018. This included pay awards, social benefit expenditure, healthcare costs and the one-off abortive costs associated with the hospital

• the Strategic Reserve decreased in value by £33 million from 2017, through falls in the valuation of investments over the year of £25 million, and £8 million being transferred to fund the hospital project. The Strategic Reserve balance still remains in a strong position, at £807 million

• the Social Security Funds decreased in value by £49 million from 2017, and now stand at almost £1,921 million

States of Jersey Annual Report and Accounts 2018