States on target to balance budget by the end of 2019

States on target to balance budget by the end of 2019

Senator Alan Maclean said in the States that a budget surplus of £2.4 million was currently forecast by the end of 2019 but ‘additional costs’ have been generated which were not accounted for in the Medium Term Financial Plan in 2015.

He mentioned that two particular cases were the States now having to pay rates on its buildings, a result of lobbying by St Helier Constable Simon Crowcroft, and the reinstatement of the single-parent component of income support, which was approved following the lodging of a proposition by the Health and Social Security Scrutiny panel.

The minister was asked by Deputy Andrew Lewis to provide an update on whether the government was going to balance its budget next year, as intended in the plan.

In response, Senator Maclean said that it was forecast to do so but with a lower surplus than initially hoped.

‘Members may recall that that the plan had a surplus by 2019 of £3.6 million. In the update of the budget in 2018 the latest figures showed a surplus, albeit reduced to £2.4 million,’ he said.

‘Members will be aware that that level of surplus is very small but nevertheless we are still showing a balanced budget.’

He added that he was concerned that recent votes in the States had generated extra costs, which would require additional revenue to eventually be generated.

‘I would point out that the MTFP was a package and we have to deliver on the revenue raising of that package as well, particularly bearing in mind the additional costs that have been voted through in recent times,’ he said.

‘I think particularly of the States paying rates – £1.8 million recurring that there is no revenue source for – and the single parent component of income support that was taken away [and reinstated], which is going to be £2.7 million recurring.

‘We are incurring extra costs and we are not putting in place revenue to deal with it.

‘But as it stands, yes we are balancing budgets.’

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