Proposed budget 'a step in the right direction'

Jersey's government has released its budget for 2027 to 2030, with a number of targeted measures designed to help families with the cost of living.

These include increasing the number of free hours of nursery care for two to three-year-olds from 15 hours to 20 hours, and doubling the parental grant to £1,800 for families with newborns or those adopting a child.

The funding for the Health Department has increased again, from £381m in 2026 to £406m.

Last year, the Fiscal Policy Panel said Jersey was spending more than it was earning, but Treasury Minister Alan Maclean told the BBC the planned new budget was "a step in the right direction" towards correcting that.

In his foreword to the budget, Chief Minister Lyndon Farnham wrote: "For many households, the cost of living remains the most immediate concern.

"Housing, childcare and everyday living costs continue to put pressure on family budgets. Businesses are also dealing with higher costs and an increasingly competitive environment.

"We are providing practical support to help put more money back into islanders' pockets, particularly for families facing the greatest pressures."

The measures targeted to help families with the cost of living include:

• Free nursery care for two to three-year-olds increasing from 15 hours a week to 20 hours
• The parental grant rising from £887.25 to £1,800 for families with newborns or adopting a child
• A £250 family support payment for each school-aged child in low to middle-income households in 2027
• Free school meals extended to secondary school pupils on the Jersey Premium funding scheme

When asked if he thought these measures helped islanders in a meaningful way, Maclean said: "I hope so. It's a step in the right direction.

"Obviously a lot more needs to be done, but what we've sought to do is target the resources we had available to those most in need."

He also explained it was not just families measures were targeted at.

He said: "You will have the seen that the pension has been uprated by 4.7%, and we've also got the community cost bonus which helps people not in families who are typically just above the income threshold levels."

Health's spending is due to increase by £25m.

In the previous budget, the Health Department's funding was increased by £60m, something former Treasury Minister Elaine Millar said was "concerning".

While the planned increase in health funding was less, Maclean said it was the "largest spending department by a significant way".

"We need to do some proper forensic analysis and make certain that the right money is invested to deliver the correct result for islanders," he said.

The minister also said revenues from Pillar Two, a global rate of corporation tax for multinational companies with revenues of €750m (£631m) or more, would pay towards the building of the new acute hospital.

Maclean said: "We're very fortunate to have that and we will be targeting that money at the cost of building the hospital at Overdale.

"That will reduce our need to borrow more money and it will reduce our need to use reserves."

Maclean said the budget was a "small step in the right direction" to addressing concerns by the Fiscal Policy Panel that Jersey had been spending more than it was earning.

He said: "In recent years, the government has been at an operating level of spending more than it's been receiving in income in terms of taxes and charges.

"That's not sustainable and we do need to address that.

"So we've started with this budget, but the key is I describe this as a transitional budget.

"The 2028-2030 budgetary period is where we're going to need to make structural changes to make certain that as we move forward public finances are sustainable for the long term."

States members are due to debate and vote on the budget in December.

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