Budget 'fails' to help restore financial balance

Guernsey's budget for 2026 "fails" to help the government achieve financial stability, according to a committee scrutinising it.

The Scrutiny Management Committee said its "foremost concern" was the predicted £115m outflow in 2026, and any plan to fund it by borrowing or liquidating reserves was "unsustainable" and would "erode fiscal resilience".

Deputy Andy Sloan, chair of the committee, said the predicted 4.4% increase in spending, despite a 3.4% forecast growth in income was "of particular concern" as the deficit was projected "to worsen" from £66m to £77m in 2026.

The budget will be debated on 4 November.

The State's Policy and Resources Committee said the one-year budget came at a time "of considerable uncertainty" for Guernsey's finances and was "compiled on the assumption of real but modest economic growth".

It said there was a need for "financial discipline" after several years of "structural imbalance" in the public finances.

Responding to the budget proposals on 24 October the Scrutiny and Management Committee told the presiding officer there was "limited evidence" that the size or the £360m forecast workforce bill was effectively managed.

The government said services for 2026 would only get increased funds for necessary costs.

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