Snapshot shows parlous condition of public finances being handed to new States
P&R has reported a “day-to-day activity” deficit of £44m. for 2024.
- P&R has reported a “day-to-day activity” deficit of £44m. for 2024.
- General Revenue showed a deficit of £9m., alongside £13m. in Social Security Funds and another £22m. in projects
- Investments increased by £130m. but this is a valuation, not actual income.
- An ongoing underlying £56m. deficit has been flagged.
Policy & Resources has released an update on the financial performance as islanders go to the polls.
This decision to provide preliminary figures stems from the committee's intention to address the heightened concerns about public finances expressed by candidates and the electorate during the General Election campaign.
For the year 2024, the difference between income from taxes, duties and charges that fund public services and what was spent on them was £44m.
This figure includes a £9 million deficit attributed to General Revenue. There was a £13 million shortfall in Social Security Funds and an additional £22 million in non-infrastructure project expenditures, which included expenses related to IT transformation and the revenue service programme.
In contrast, the States’ investments were valued at £130 million higher at year-end compared to the previous year. However, while this valuation suggests an overall core surplus of £34 million for 2024, it is crucial to understand that this figure reflects increased investment values, not actual cash income.
The update reveals a significant ongoing structural deficit, estimated at £56 million annually. Deputy Lyndon Trott, outgoing President of Policy & Resources, highlighted the importance of this financial update:
“Our Committee felt it was important to provide this financial update in advance of the General Election given the significant and understandable focus on public finances from both candidates and the electorate.”
He reiterated concerns over the reliance on past reserves to meet current service demands, calling for the new Assembly to immediately focus on improving public finances.
Deputy Heidi Soulsby, Vice President of the Committee, expressed satisfaction that the States would publish accounts fully compliant with International Public Sector Accounting Standards for the first time when they are released on 23rd June.
“We are not raising enough through taxes to fund the services our community relies on.”
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