Letter - Proposed Budget 2027-2030 - Review Launch Response

Deputy Lyndsay Feltham

Chair, Corporate Services Scrutiny Panel By email

12th October 2026

Dear Chair,

Thank you for your letter of 5th October. The answers to your questions are provided as follows:

1. Progress  reporting  on  the  projects  and/or workstreams  agreed  by  the  States Assembly as part of the Budget 2026-29 including:

1. Where these are continuing in 2027
2. Where these were expected to continue in 2027 but have been delayed or cancelled including the rationale for this

Chef Minnistre | Gouvèrnément d'Jèrri

Government of Jersey | Union Street | St Helier | Jersey | JE2 3DN 01534 440628 | [email protected]

The Replacement Asset and Minor Capital referenced in the Budget document is not a single capital  project.  This  provides  the  Department  with  funding  to  replace  key  operational equipment on an annual basis to ensure assets are maintained at an appropriate standard for the ongoing delivery of public services.

None of the capital projects in the Budget for 2026-2029 have been delayed or cancelled from the Chief Minster's portfolio.

2. An outline of any changes in policy direction or delivery for 2027 and the impact thereof Cabinet Office

A detailed update of the progress of the Legislative Programme will be provided to Scrutiny shortly, once it has been approved by the Council of Ministers. This is a live document' and variations to individual legislative projects are to be expected throughout the year, as priorities change and the complexity of the subject becomes more apparent. A commitment has been made to share with Scrutiny the list of items within the Development Pool', as these could be actively progressed during any periods of reduced activity.

In addition, the Chief Executive Officer has been asked to ensure that the draft Departmental Business Plans are provided to Scrutiny much earlier than in previous years. It is hoped that these will be provided by mid-November. These documents should provide Scrutiny with more detail on planned activity. In the context of the Cabinet Office, this will include the usual Annex detailing policies under development for several Ministers.

3. An outline of any changes to staff posts and restructuring within your department and the anticipated resultant savings and impact on service delivery

The proposed Common Strategic Policy includes a continued commitment to curb growth in the public sector, and Ministers have ensured that commitment is reflected in budgets.

£2.45m of savings is planned in 2027 as a contribution to the £9.6m of recurring savings required within the Budget. The savings have been allocated as follows:

• Cabinet Office: £0.655m

• Digital Services: £1,410m

• People Services: £0.385m

Cabinet Office

The efficiency savings will be achieved by right sizing' using the following levers:

• Maintaining an external recruitment freeze on all non-essential roles and those above Grade 9;

• Avoiding spend on external consultancy unless it is for essential technical services;

• Prioritizing the Department's project demands on Digital Services, to ensure that all activities will improve the benefits for islanders and provide value for money;

• Continue to prioritize talent development for on-island staff and apply the principles of diversity, equity and inclusion.

In addition to the efficiency savings required of the Cabinet Office, underspends will be used to fund the production of the Li ving Costs and Household Income Survey (a periodic income and expenditure survey, last run in 2021-22). This year-long survey will be delivered by Statistics Jersey, starting in spring 2027, with the Household Income Distribution results planned for publication in late 2028 and the Household Spending report in the first half of 2029.

Digital Services

Saving  targets  solutions  are  being  developed  based  on  a  review  of  vacancies  and Departmental efficiency opportunities. These savings form part of a wider programme of service redesign and improved ways of working to ensure resources are aligned to future business and technology requirements.

People Services

Earlier  workforce  savings  have  been  achieved  through  a  comprehensive  review  and restructuring of the People Services operating model. In line with the recruitment freeze, workforce planning measures were implemented to actively manage resources, resulting in the removal of a number of vacant funded posts.

The recurring nature of these organisational changes means that the earlier savings delivered have been embedded within the Department's cost base and will continue to contribute towards the achievement of workforce savings targets in 2027.

4. An up-to-date chart of the organisational structure

An up-to-date chart can be found on Gov.je and the latest version is provided as an annex to this letter.

5. An update on the efficiencies and other savings for the Cabinet Office to be delivered in 2026 and how these were achieved

The savings target for payroll reduction across the Cabinet Office was £1,335m for 2026.

The budgets have been removed for the roles saved, and unfilled vacant posts have been removed from the system. Vacancy management will continue on a monthly basis as part of the wider approach to reducing public sector expenditure.

The Cabinet Office has fully delivered its 2026 savings target of £1,344m, as well as the Union Street office accommodation savings which were introduced mid-year. All these savings are recurring. The majority of these savings arise from permanent role reductions, supported by measures to restrict recruitment, non-essential spending and avoiding external consultancy unless it is for essential technical services. It is forecast that the Cabinet Office will underspend against budget by approximately £0.8m at the end of 2026.

Should the Panel require any further information, please do not hesitate to contact my office or the Minister for Treasury and Resources.

Yours sincerely,

Senator Lyndon Farnham Chief Minister