Annual budget

Legal requirements

Article 9 (1) of the Public Finances (Jersey) Law 2019 requires that -

Each financial year, the Council of Ministers must prepare a government plan and lodge it in sufficient time for the States to debate and approve it before the start of the next financial year.

The remainder of Article 9 sets out in detail what must be included in the plan in respect of financial information.

Budget (Government Plan) 2025-2028

The Budget (Government Plan ) 2025-2028 was agreed by the States Assembly in December 2024. The decision had been taken to rename the Government Plan “Budget”, although for the purposes of the Public Finances (Jersey) Law 2019 it is the Government Plan.  The name change reflected the reality of the position that the document was a budget rather than a plan.  Another change from previous practice was that the proposed Budget was published much earlier than in previous years.

The Budget set out the following 2025 highlights –

• General revenue income £1.27bn.
• Government spending in delivering services to Islanders £1.196bn.
• 2025 balance in the Strategic Reserve £1.449bn.
• Investment in new healthcare facilities £73m.
• Investment in buildings, infrastructure and IT £79m.
• Purchase of new government HQ £91m.
• Investment in health £31m.
• Support for businesses and charities through transition to the living wage £20m.

The Budget measures for 2025 included –

• Increases in personal tax allowances by 3.6%, for example the single person’s allowance increases from £20,000 to £20,700.
• No increase in alcohol or fuel duty.
• 83p increase in the duty on a packet of cigarettes.
• 20% increase in vehicle emissions duty for the highest emitting vehicles.

Planned spending by department is as follows –

£322m          Health and Community Services

£176m           Education and Lifelong Learning

£109m           Employment, social security and housing

£75m             Infrastructure and Environment

£73m             Justice, Home Affairs and States of Jersey Police

£52m             Economy, Financial Services and External Relations

£48m             Non-Ministerial and other States Bodies

£47m            Treasury and Exchequer

£40m            Technology and Digital Services

£26m            Cabinet Office

£22m             Jersey Overseas Aid

£14m             People services

It should be noted that the definitions of departments are different from those in the previous plan.  Also, some of the listed departments are not departments but functions, for example “people services” in the previous plan was included in the Cabinet Office figure.  However, more detailed figures are published in the main report.

Proposed capital expenditure of £166m comprises –

£28m            Estates

£30m            Infrastructure

£21m             IT

£73m             Healthcare facilities

£15m             Other

Proposed expenditure from Social Security Funds of £481 million includes –

£335m          Pensions and other benefits (Social Security Fund)

£84m            Long Term Care benefits (Long Term Care Fund)

£62m            Health benefits (Health Insurance Fund)

The Proposed Budget (Government Plan) 2026 – 2029

The Proposed Budget (Government Plan) 2026 – 2029 was published on 16 September 2025.

Under the heading of “key highlights of the budget” the press release stated –

Subject to approval by the States Assembly, this Budget will mean:

Healthcare: continued investment in modern facilities, preventative care, and digital health.

Early Years: expanded nursery provision for two and three-year-olds to support families and child development.

Cost of Living: higher tax allowances to ease household pressures.

Long-term investment: a major capital programme of £1 billion between 2026 and 2029 to renew infrastructure and enhance public services, including new healthcare facilities.

Jersey Capital Investment Fund: a dedicated fund designed to protect capital budgets and deliver greater certainty and transparency for long-term projects.

Government efficiency: £9 million in annual savings from 2026 through reducing management layers, cutting reliance on consultants, and consolidating office space.

Key statistics are –

• General revenue income of £1.34 billion.
• Government spending £1.28 billion.
• Balance in the strategic reserve £1.3 billion.
• Investment in buildings, infrastructure, IT and the new hospital £1 billion over 4 years.
• Investment in Fort Regent +£43 million
• Investment in preventative and digital healthcare +£12 million.
• Investment in childrens’ services +£8 million.
• Investment in competitiveness +£7 million
• Additional nursey funding for 2-3 year olds +£3 million.

Proposed budget measures are –

• Increase in the personal tax allowance from £20,700 to £21,250.
• Increase of 1p on a 500ml can of beer and reduction of 5.4p on a pint of draught beer.
• 7p increase per litre of fuel.
• 80p increase on a pack on 20 cigarettes.
• Increase in vehicle excise duty ranging from £2 for the least polluting vehicles to £2,480 for the most polluting.
• £2 per 10ml vaping tax.
• 1% reduction in the higher rate of stamp duty on non-main residence.

Proposed spending by department is –

£381m           Health and Care Jersey

£246m          Children, Families, Education and Lifelong Learning

£113m          Employment, Social Security and Housing          

£74m            Infrastructure and Environment

£68m            Justice, Home Affairs and Police

£55m             Economy, Financial Services and External Relations

£50m            Non-Ministerial and other States Bodies

£47m            Treasury and Exchequer

£35m             Digital Services

£22m             Jersey Overseas Aid

£18m             Cabinet Office

£13m             People services

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