blog.gov.je
By Deputy Elaine Millar, Minister for Treasury and Resources
This year’s proposed Budget reflects a careful balance between supporting Islanders today and preparing Jersey for the challenges of tomorrow.
Our aim is to invest in essential services – healthcare, children’s wellbeing, and modern infrastructure – alongside a capital programme that includes improvements to Fort Regent, new healthcare facilities and upgrading the Island’s infrastructure network. At the same time, we are strengthening financial resilience through prudent borrowing and investment decisions, moving away from short-term fixes toward sustainable, long-term planning.
It delivers targeted tax relief to ease cost-of-living pressures, while introducing health-focused measures such as a levy on vaping products.
This approach positions Jersey as a stable, forward-thinking jurisdiction – one that offers opportunity, security, and confidence for Islanders and businesses alike.
The Fiscal Policy Panel has highlighted the trajectory of day-to-day spending, and we acknowledge this assessment. That’s why we remain committed to strengthening financial discipline. Moving to a three-year budgeting cycle will allow for better planning and control – an approach supported by the Panel.
Our reserves are a cornerstone of Jersey’s financial resilience and rebuilding them remains a top priority. The Strategic Reserve and Stabilisation Fund provide essential protection against economic shocks, and we are committed to strengthening them.
One way we will do this is by using excess revenues from Pillar Two – the global minimum tax initiative introduced by the OECD to ensure that large multinational companies pay at least 15% tax wherever they operate. But there are much complexity and geo-political uncertainty attached to this tax which could influence how much revenue we ultimately receive. That’s why our forecasts are deliberately cautious.
In addition, as approved in the 2025 Budget, the Prior Year Basis Taxation Debt will be transferred into the Strategic Reserve early next year. These steps will help us build a stronger financial buffer and ensure Jersey is well-prepared for future challenges.
Our Social Security Fund remains in good health, supported by contributions and strong investment returns. Over the Budget period, £184 million will flow into the Fund from taxation, alongside contributions and investment returns. This ensures the Fund will continue to grow and that pensions and contributory benefits remain secure.
We have temporarily reduced the States Grant (the amount Government pays into Social Security Funds from taxpayers) to unlock investment in healthcare and children’s wellbeing now, without compromising long-term sustainability. Jersey’s pension system is robust, with over £2.5 billion in reserves.
This Budget prioritises investment in services Islanders rely on:
- £28 million for healthcare
- £8 million for children’s services
- £3 million to expand free childcare
These decisions reflect our commitment to improving quality of life while maintaining financial stability. We are addressing decades of under investment in Jersey’s infrastructure and essential frontline services without raising taxes – improving investment in services that will make a real difference to Islanders.
We are also backing local businesses through the Better Business Support Package, allocating £10 million in 2026. The reintroduction of the trainee rate for the minimum wage and the Investing in Jersey programme further demonstrate our support for economic growth.
To maintain Jersey’s position as a leading international finance centre and to foster new opportunities, we have launched the International Competitiveness Working Group. This group brings together Ministers, regulators, industry leaders, and government officers to develop a strategy for sustaining and expanding Jersey’s economic base.
Key objectives include:
- Strengthening Jersey’s position as a leading IFC
- Providing insights to sustain and grow the industry
- Improving collaboration between government, regulator, and industry
- Implementing clear, measurable actions for long-term success
£15 million has been earmarked for competitiveness measures in 2026 and 2027, but groundwork is already underway. Industry workshops have begun, with positive feedback and an initial report expected by early summer. Engagement will continue through events, Financial Services Advisory Board meetings, and dedicated briefings for States Members and Scrutiny.
We remain committed to increasing the minimum wage to two-thirds of median earnings by June 2026.
In 2024, we exceeded our efficiency savings target, delivering £18 million against a revised target of £16.3 million. Plans are in place to achieve £20 million in 2025. Investment returns remain strong, with the Strategic Reserve and Social Security Reserve Fund outperforming their targets and continuing to grow.
The recent rise in RPI is largely driven by imported costs. We are keeping fees and charges as low as possible and monitoring domestic inflationary pressures closely.
We recognise the concerns raised about funding for the States of Jersey Police and the States of Jersey Fire and Rescue Service. We continue to invest in these services to ensure they are able to carry out their crucial roles in keeping our community safe, as it is a top priority for this Government.
This Budget is about balance – investing in Islanders today while safeguarding our financial future. We are making pragmatic decisions that strengthen resilience, support businesses, and protect pensions, without raising taxes. Jersey’s strong reserves and forward-thinking policies position us well to navigate uncertainty and seize opportunities. We have produced a responsible, forward looking and balanced budget.
Together, we are building a stronger, fairer, and more sustainable Jersey for generations to come.