Public Accounts Committee urges stronger financial management, sustainability and transparency
Scrutiny
31 July 2025
The Public Accounts Committee (PAC) has released its report on the States Annual Reports and Accounts 2024 (ARA), outlining concerns over transparency in public spending, fiscal sustainability and departmental overspending in health.The States Annual Report and Accounts, which was published on 2 May 2025, provides information on the financial performance of the States and includes a breakdown of the initiatives carried out by the different Government and non-ministerial departments.
In reviewing and analysing the ARA, the PAC has identified a number of areas for the Government to improve how it reports its finances and manages public money.
The Committee’s findings reveal that the States’ fiscal position has significantly worsened. Jersey’s Stabilisation Fund has been severely depleted, and a £1.6 million surplus in the Consolidated Fund in 2023 has turned into a £63 million deficit in 2024, which has been plugged only through contingency reserves. This approach, the Committee said, is ‘increasingly unsustainable’ with limited flexibility to cover any potential economic shocks.
The review of the ARA has also highlighted major concerns about the spending for health. The Health Department overspent its budget by £30.7 million in 2024, continuing a five-year trend. Without significant system transformation and greater financial controls this could remain above budget in 2025 risking further deficit and there does not appear to be a strategy in place for addressing the system change required to contain costs. To address this, the Committee has recommended that the Department’s quarterly finance dashboard be published as a standalone document for scrutiny by the States Assembly. An improvement plan should also be presented to the PAC by the end of Q4 2025, outlining how forecasting, budgetary control, and financial oversight will be strengthened.
In total, the Committee has made 18 key findings and 20 recommendations including:
- The Government should publish, in time for the debate of the 2026 Budget, a ten-year revenue and expenditure outlook focusing on potential changes to the Island’s demographics.
- Government departments should flag forecast overspends to the Assembly when they are above 2%.
- The Government should ensure all redundancy and severance packages above £100,000 should be accompanied by a full business case and shared with the PAC.
- Arm’s-Length Organisations should publish their annual accounts at the same time as the States of Jersey Annual Report and Accounts where possible to give a clear overall picture of the public finances.
- Develop a more accessible, interactive version of the accounts to aid public understanding.
‘Of particular concern to the Committee is the continued trend of overspending within Health. We fully understand the persistent cost pressures within the Department but, given the Minister’s recent comments in the media about needing more money, it is crucial that robust financial controls are put in place to ensure spending across Government, but particularly in health, is controlled.
‘Greater transparency, stronger oversight and a more user-friendly approach to public reporting are essential to rebuilding trust and ensuring long-term sustainability. We hope the Government acts swiftly to implement these recommendations to assist in addressing the current concerns around the fiscal position.’
The full report can be found on the States Assembly website. The PAC’s terms of reference for the review can be found HERE.
