States cuts on target as number of top earners falls

Thursday 16 June 2016

The work to fill the £145 million black hole that’s expected in public finances by 2019 has started well, with departments making 2% cuts and finishing the year almost £25 million under budget.

Stats revealed in the annual accounts for the States of Jersey also shows, for the first time, a slight drop in the number of civil servants earning more than £100,000. In 2014, there were 232 States employees with total remuneration – including pay and pension contributions – of £100,000 or more, but in 2015 that number had dropped.

Part of the fall was because the employees at the Ports of Jersey are no longer included in the overall headcount, but the underlying numbers saw a drop from 216 to 207.

Treasury Minister Alan Maclean said that the figures showed that spending and income of the States were going in the right direction, and that the balance sheet remained strong.

He said: “The latest financial report and accounts demonstrate that our strategies for growing the economy are working and our public finances remain strong.

“We are planning for the long term, however the risks are on the downside, so we have been taking a long, hard look at the services that Government provides and we have made some tough decisions in our ongoing reform of the public sector.

“Departments have risen to the challenge of providing public services while aiming for balanced budgets by 2019, and we have seen some very encouraging results. But we must not make the mistake of allowing ourselves to become complacent.

“There is absolutely no room for complacency, especially as global economic conditions remain fragile, however it is pleasing to see the States Accounts reflecting the success of the strategies for growing the economy.

“The economy returned to growth in 2014 and GVA was up nearly 5% in real terms.

“This was driven by significant increases in profit from financial services which have contributed to a steady, but improved, income. The Fiscal Policy Panel also forecast further growth in 2015 and into 2016, although they have emphasised the risks to the economic outlook."