Expenditure Growth Allocation
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WQ.410/2025
WRITTEN QUESTION TO THE CHIEF MINISTER
BY DEPUTY M.B. ANDREWS OF ST HELIER NORTH QUESTION SUBMITTED ON MONDAY 3rd NOVEMBER 2025 ANSWER TO BE TABLED ON MONDAY 10th NOVEMBER 025
Question
"In relation to the Expenditure Growth Allocation of £52,703,000 for 2026 as set out in the Proposed Budget (Government Plan) 2026–2029 (p.44), will the Chief Minister advise how this growth increase can be justified given the stated intention of the Government to reduce public spending, and the employment freeze introduced by the States Employment Board; and will he explain how these factors were taken into account when the Council of Ministers agreed the allocation?"
Answer
The Council of Ministers acknowledges the importance of fiscal discipline, as reflected in the Common Strategic Policy's commitment to curbing public sector growth and prioritising essential services. In line with this, several measures have been implemented, including the recruitment freeze introduced by the States Employment Board in August 2024 and restrictions on consultancy spending.
These actions have already yielded significant savings. The recruitment freeze prevented an estimated increase of 325 full-time equivalent (FTE) employees by May 2025, and approximately 1,000 vacancies were removed from the system. These actions are forecasted to avoid up to £23 million in annual costs. Additionally, consultancy restrictions delivered £29 million in savings in 2024 compared to the previous year, with further reductions expected in 2025.
Notwithstanding these savings, the Expenditure Growth Allocation of £52.7 million for 2026 is justified by the need to invest in essential frontline services and respond to demographic and front-line service pressures. The allocation includes:
The Council of Ministers carefully considered the employment freeze and broader cost-saving measures when agreeing the allocations. These savings helped create room for targeted growth in priority areas without undermining the overall goal of curbing public expenditure. The £52.7 million figure reflects a reprioritisation rather than unchecked growth, ensuring that resources are directed to areas of greatest need while maintaining a balanced budget.
The Council of Ministers remains committed to maintaining sustainable public finances, ensuring that future spending is carefully managed and aligned with income and long-term economic stability.