Policy & Resources will have to argue against a challenge seeking to freeze almost all new spending by the public sector in next year’s budget.

The top political committee has proposed above-inflation spending increases in its plans for day-to-day spending by committees in 2026.

But Deputies Andy Sloan and Haley Camp will challenge that by seeking to reduce the level of spending proposed by £27.35m – keeping it in line with 2025 levels – which is a real-terms cut.

This would see States total spending for the year maintained at £650.55m, with Health & Social Care facing a £9m cut from its budget.

There would also be a £2.5m reduction for Home Affairs, £3m less for P&R’s internal services and around £10m off the budget reserve which funds the payroll and major projects.

There would be no cuts to Policy & Resources, Economic Development, Education, Sport & Culture, Employment & Social Security, the States’ Trading Supervisory Board or the Royal Court.

The pair say this is because they are below the 2025 forecast for spending, and insist any cuts to budgets aren’t austerity, but “realism” due to the States’ precarious financial position. 

The new cash limits the pair want to see imposed on Committees.

“The intention is not to undermine essential services, but to signal a clear commitment to fiscal discipline and value for money at a time when public confidence in States spending is low,” they said.

“By adopting this amendment, the States would send a strong message that Guernsey’s government must live within its means, focus on delivery and demonstrate that efficiency and reform are more than slogans.”

It comes after the Scrutiny Management Committee – of which both Deputies Sloan and Camp are members – penned a highly critical letter about P&R’s budget plans.

In it they raised concerns over HSC’s budget, which is the most cash hungry committee in the States.

“The SMC notes the significant increase in Health & Social Care expenditure but is concerned by the absence of supporting analysis within the Budget Report,” Deputy Sloan said. 

“In particular, there is little explanation of the demographic or service pressures driving this rise, nor any detail on the measures being taken to improve cost control and efficiency.”

The amendment will be debated along with the rest of the budget proposals from 4 November.