'Significant challenges' for States accounts

The States of Guernsey is expected to have lost £44m in 2024, although not including commercial entities such as Guernsey Electricity and airline Aurigny, a report says.

The losses include a £9m deficit in general revenue, £13m in social security funds and £22m of non-infrastructure project expenditure, such as IT transformation.

The report has been released as the next States seems set to revisit a taxation plan including a goods and services plan approved as a way of balancing the books.

Deputy Heidi Soulsby, of the current Policy & Resources Committee, said the issue of funding local services "will need the collective attention of the incoming assembly".

Deputy Jonathan Le Tocq, Policy & Resources Committee Member, said: "What I don't want to see is flip-flop decision-making, particularly at this stage because we haven't got the time to do other things [other than a GST+ package].

"We know from the reviews we've had that they won't necessarily bring in the sorts of money we need in the time frame that we've got."

Losses have been incurred as a result of a number of factors.

Core staff numbers have increased by 96 when comparing 2023 to 2024, with the most significant increase in health.

This increase was focused on the nurses and medical consultants areas, including filling 112 vacant full-time roles, which meant some reduction in reliance on agency workers.

There were also increases in staffing for teaching, IT and tax services.

Additionally, the number of core staff costing more than £110,000 a year (including salary, overtime, social security costs, etc) increased by 48 up to 263.

Some 54% of these staff work in front-line services in health, education, or home affairs.

Le Tocq said: "It is clear from the 2024 accounts that significant challenges continue to exist, which is something the next Policy & Resources Committee – and the assembly as a whole – will need to focus on as a priority next term.

"We must promptly find a consensus position on how best to address these challenges."

Including entities, the operating deficit was £18.8m as it included the Guernsey Housing Association, Guernsey Electricity and Aurigny, etc.

However, Policy and Resources is urging the focus of the island's financial position should be on the "core", at a £44m deficit, because entities did not contribute to paying for the public services provided by the State, politicians said.

Soulsby said: "We are not raising enough through taxes to fund the services our community relies on.

"It is clear that this will need the collective attention of the incoming assembly."

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