Central Reserve Fund allocations and balances

Published on: 24 November 2025

Question type: Written

Asked by: Inna Gardiner

Reference: WQ.440/2025

Answered by: Minister for Treasury and Resources

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WQ.440/2025

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES

BY DEPUTY I. GARDINER OF ST. HELIER NORTH

QUESTION SUBMITTED ON MONDAY 17th NOVEMBER 2025 ANSWER TO BE TABLED ON MONDAY 24th NOVEMBER 2025

Question

"Will the Minister detail how the allocations to the Central Reserve Fund in the respective budgets from 2022 to 2026 were calculated; and will she advise what the outstanding balance of the Fund was for each of the years 2022, 2023 and 2024?"

Answer

The Central Reserve is not established as a States Fund under the Public Finances (Jersey) Law 2019. The Central Reserve is a reserve head of expenditure proposed in the Budget, which includes:

• Inflation Provisions: The Central Reserve typically holds inflation provisions until sufficient information is available to allow them to be allocated. These are based on forecast assumptions of inflation as measured by the Jersey Retail Price s Index (RPI), provided by the Fiscal Policy Panel, and budgeted pay and non-pay costs.

• Specific Items: The Central Reserve may hold amounts for specific purposes, either specified in the Budget, or through an in-year decision. This includes unallocated growth items and smoothing reserves for areas where expenditure fluctuates between years.

• Contingency: The Central Reserve provides flexibility to respond to unforeseen expenditure needs that may arise during the year. Typically, a provision of £5 million is held, based on previous history and affordability. A further £2m has been provided for in previous years for tax funded

social benefits payments.

Allocations from the Central Reserve in year are made in line with the Procedure for allocations from the Central Reserve (R-163-2025). Under Article 19 of the Public Finances (Jersey) Law 2019, the Minister has the power to carry forward unspent budgets for a head of expenditure in one financial year into a reserve head of expenditure for the following financial year.The Central Reserve was first included in Government Plan 2024 – 2027, when the General Reserve and Reserve for Centrally Held Items were combined into a single reserve head of expenditure renamed as the Central Reserve. To ensure comparability, previous years figures have been combined.

The table below details the amounts allocated to the Reserve in the Budget, amounts carried forward (either from the reserve or other underspends) and allocations made in the year. The amount unused at the end of the year is also shown.

Revenue reserve head of

expenditure £'000 2022 2023 2024 2025 2026

Budget allocations; Contingency Inflation

Specific items - other Specific items - covid

8,762 21,198 18,187 52,085

12,000 41,979 1,264 5,000

7,000 50,286 4,902 -

7,000 25,092 2,105 -

5,000 30,500 14,525 -

Total budget allocation

100,232

60,243

62,188

34,197

50,025

Transfers from prior year Allocations in year;

Pay awards

Year end

Other

75,261

(18,745) (24,065) (44,688)

55,047

(41,635) (713) (50,931)

37,723

(51,442) (20,637) (25,268)

Budget remaining at year

end 87,995 22,011 2,564