Finance Law Delegation Report for the six-month period to 30th June 2026

REPORT

The purpose of this report is to satisfy a requirement of the Public Finances (Jersey) Law 2019 for the Minister to report to the States Assembly, twice yearly, decisions taken by the Minister under certain Articles of that Law. Details of such decisions are set out in the body of this report. In most cases these decisions vary the amounts for heads of expenditure approved by the Assembly in the Government Plan.

In summary, during the six-month period ending on 30 June 2026 the Minister or Treasurer (acting under delegation from the Minister) approved the following:

• Five transfers between approved heads of expenditure totalling up to £3.9 million, of which up to £1.4 million were transfers into the Central Reserve from project heads of expenditure

• One transfer of departmental and unallocated Central Reserve funding from 2025 to the Central Reserve in 2026, totalling £12.5 million

• One transfer of Major Project funding to the following year for New Healthcare Facilities, totalling £97.3 million

• Thirteen uses of additional departmental income above that included in the Government Plan, totalling up to £9.85 million

• One allocation from the Central Reserve made in 2026 relating to 2025 totalling up to £1.2 million, to amend departmental and project budgets in line with Budget 2026-29

• Six allocations from the Central Reserve made in 2026 relating to 2026 totalling up to £33.8 million. Of these:

• up to £6.9 million was to fund ongoing capital projects in 2026
• up to £300,000 was allocated to Li ving Wage Transitional Support (Better Business Support Scheme)
• up to £585,000 was the transfer of previously approved project balances held in the Central Reserve back to the relevant Heads of Expenditure in 2026 to support the delivery of capital projects
• up  to  £4.2  million  was  transferred  to  departmental  Heads  of Expenditure  to  support  departmental  priorities  and  operational requirements
• up to £21.7 million was to fund 2026 pay awards

• Two Letters of Comfort to Accountable Officers, totalling up to £1.7 million

Approvals in the period are detailed below.

1. The administration of the public finances of Jersey

In accordance with the Public Finances (Jersey) Law 2019 ("the Law") certain matters are required to be reported to the States Assembly twice yearly by the Minister for Treasury and Resources ("the Minister").

The Public Finances Manual requires that this report includes a list of all letters of comfort issued during the preceding six-month period. A letter of comfort from the Minister  for  Treasury  and  Resources  confirms  to  an  Accountable  Officer  that additional funding will be allocated from Reserves in that financial year if it appears that the approved head of expenditure may be exceeded.

This report summarises all decisions made, and letters of comfort issued during the six month period to 30 June 2026. Where decisions have not previously been published, this is due to one of two reasons –

• The  decisions  were  exempted  from  publication  under  the  Freedom  of Information (Jersey) Law 2011; or

• The decisions were taken by the Treasurer of the States under delegated authority from the Minister.

2. Reporting on decisions

The areas of administration which are required to be reported on are as follows:

1. each function undertaken, within the applicable 6-month period under any of Articles 18 to 21, 24 and 26 to 28; and
2. each direction given, within the applicable 6-month period by the Minister under Article 15(3) with respect to the amounts appropriated for a reserve head of expenditure.

Article 18 relates to transfers between heads of expenditure.

Article 19 relates to transfers to the following year's reserve.

Article 20 relates to transfers of major project amounts to the following year. Article 21 relates to the power to allocate excess income.

Article 24 relates to emergency expenditure. Article 26 relates to financing (borrowing). Article 27 relates to loans.

Article 28 relates to guarantees and indemnities.

There were no approvals in the period under Articles 24 or 26. Other approvals are detailed below.

1. Transfers between heads of expenditure under Article 18.

NB A list of abbreviations used can be found at the end of this report.

Where Ministerial Decisions were public the full decisions can be read on www.gov.je.

2. Transfers of unspent 2025 approvals to the following year's Central Reserve under Article 19.

3. Transfers of Major Project heads of expenditure to the following year under Article 20.

4. Approvals of the allocation of excess income under Article 21. Excess income in this regard is income over and above 10% (up to a maximum of £100,000) of the relevant departmental income estimates in the Government Plan (Budget) 2026-2029.

5. Approvals of financing (borrowing) under Article 26

There  were  no  new  approvals  under  Article  26  in  the  six-month  period. However, the following information is included in this report for completeness.

Overdraft

During the six months to 30 June 2026, there were no changes to the overdraft facility held with HSBC, which remained at £50 million, as approved by the Treasurer of the States (under delegated authority from the Minister). As of 30 June the HSBC overdraft drawn was £12.1m.

In addition to the overdraft described above, the Revolving Credit Facility (RCF) may be utilised to provide additional overdraft funding. Use of the RCF for this purpose helps minimise costs associated with short-term borrowing. As at 30 June, all RCF drawings made for this purpose had been fully repaid and no amount remained outstanding in respect of overdraft funding. Previous drawdowns had been approved by the Treasurer of the States under delegated authority from the Minister.

In combination, the total overdraft position was £12.1m.

Revolving  Credit  Facility  (approved  by  the  States,  but  included  for completeness)

In the six months to 30 June 2026, additional drawings of £7.4m were made from the RCF for the purpose of funding the New Healthcare Facilities project, bringing the total drawn to £102.9 million.

The existing capacity of the RCF is £300m with an accordion option which will allow it to be expanded to £500m.

As of 30/6/26 the total drawn value of the RCF is £102.9m fully attributable to the New Healthcare Facilities project.

6. Approvals of loans under Article 27 Blue Islands Loan

Blue Islands is currently subject to liquidation proceedings. As of 30 June 2026 the outstanding balance of loans to the company had fallen to £7,382,822 following receipt of £1,773,706 from the liquidator in the first quarter. Work is continuing to recover further funds from the defaulted loan holder.

Caesarean Tennis Club

An  existing  loan  to  Caesarean  Tennis  Club  remains  in  issue.  No  further drawdowns  were  made  from  the  loan  to  Caesarean  Tennis  Club,  which continued to make capital repayments in line with their loan schedule. During the period the loan fell from £28,888.75 to £25,555 due to capital repayments made.

Housing Development Fund (States approved but included for continuity from prior reports)  

During the six-month period to 30 June 2026, no new loans were approved by the Minister for Treasury and Resources.

The net value of loans outstanding from the Housing Development Fund is issued to Andium Homes Li mited and Le Vaux Housing Trust. Loans to Andium remain unchanged at £227,615,777 as no repayments were due; loans owed by Le Vaux Housing Trust fell marginally from £1,233,791 to £1,230,080 though capital repayments.

7. Approvals of guarantees under Article 28

Under  the  Public  Finances  (Jersey)  Law  2019  (PFL'),  paragraph  28,  the Minister may provide financial guarantees not exceeding £3 million per annum or £20 million in total.

On 2 July 2024 the Minister signed MD-TR-2024-511 to issue a guarantee to the Royal Bank of Scotland International Li mited, relating to a loan of up to £2,500,000 to Beaulieu Convent School Li mited, to be secured against the assets of St Meen Properties Li mited.

The guarantee was renewed in August 2025 and remains in place.

No further guarantees or indemnities have been issued by the Minister over the period to 30 June 2026.

The following information is included in this report for completeness.

1. Jersey Student Loan Scheme

During the six-month period to 30 June 2026, no new loans were guaranteed by the States under the Jersey Student Loan Scheme, which provided financial guarantees to four banks. The Scheme closed to new loans in 2018.

P53/2007 (Student Loans for higher education – guarantees) was debated by the States Assembly on the 6 June 2007 and a maximum outstanding limit of £10 million for an unlimited time period was approved. As at 30 June 2026 there were 40 loans outstanding with a balance of £53,560. At the end of December 2025 this was £74,603.

2. Disruption Loan Guarantee Scheme (Covid)

This scheme was introduced alongside other measures to assist businesses as part of Covid support and allowed Government to guarantee loans to businesses from banks. It was not extended after 31 December 2021, therefore no new applications have been made, nor guarantees granted since that date.

169 enquiries had been made by clients to banks under the scheme at the end of 2021, of which 70 had progressed and a facility issued. Whilst £4.3 million of facilities had at one stage or another been approved, by 30 June 2026, 9 facilities remained active. These facilities had a total facility value of £0.5 million at their respective dates of award. At as 30 June 2026, reflecting repayments made in the period to the year's end, the remaining value of guarantee exposure from these facilities (including accrued interest) is £44,000 based upon confirmations received from the bank to date. Loan repayments will continue to diminish this guarantee exposure over time, notwithstanding that balances may continue to accrue interest until full repayment.

To date, there have been six confirmed defaults which resulted in claims by banks: one in 2021; two in 2023; two in 2025; and one in 2026.

The 2021 claim had a value of £28,000 and was paid in January 2022.

The  2023  claims  had  values  of  £28,000  and  £411,000  and  were  paid  in September 2023 and January 2024 respectively.

The 2025 claims had values of £3,150 and £10,334 and were paid in June 2025 and July 2025 respectively.

The 2026 claim had a value of £15,480.60 and was paid in May 2026.

8. Allocations from the Reserve under Article 15(3)

Further information on the Minister's policy for the types of allocation from the Reserve  is  contained  in  "Procedures  for  allocations  from  the  Reserve", published as R.163/2025.

3. Letters of Comfort

A letter of comfort from the Minister for Treasury and Resources confirms to an Accountable Officer that additional funding will be allocated in that financial year if it appears that the approved head of expenditure may be exceeded, even after appropriate

actions have been taken to control spending levels, or if urgent funding is required. The Minister decided, when approving the relevant Public Finances Manual section, that a list of these decisions should be published twice-yearly in this report. Letters of comfort provide temporary assurance, pending preparation of full business cases, to Accountable Officers so that necessary expenditure can continue. Budgets are not formally increased until such time as an allocation of funding is made (for example from Reserves) under the Minister's powers in the Public Finances Law.

Some letters may not result in a formal allocation of additional funding if expenditure can be managed within existing approvals.

The following Letters of Comfort were issued during the six-month period to 30 June 2026.

Minister for Treasury and Resources August 2026

Abbreviations

BC   Bailiff of Chambers

CYPES  Children, Young People, Education and Skills C&CC  Court and Case Costs

CABO  Cabinet Office

EDTSC  Economic Development, Tourism, Sport and Culture ELL  Education and Li felong Learning

ENV  Environment

ER  External Relations

HCJ  Health and Care Jersey

I&E  Infrastructure and Environment

INF  Infrastructure

JG  Judicial Greffe

JHA  Justice and Home Affairs

LOD  Law Officers Department

SoJP  States of Jersey Police  

T&E  Treasury and Exchequer