A long-term plan to rebuild Jersey’s Strategic Reserve through potential spending cuts and revenue-raising measures should be introduced by January 2029, a backbench politician has argued.
Deputy Max Andrews is calling on the Treasury Minister to develop a strategy to increase the fund’s value to between 30% and 60% of Jersey’s Gross Value Added – the range recommended by the Fiscal Policy Panel.
The reserve is currently worth less than 20% of Gross Value Added and is expected to fall further to 18% following the transfer of £277 million to fund the New Healthcare Facilities.
The Fiscal Policy Panel warned in 2021 that forecasts suggested the reserve would remain below its desired range for the next 40 years without government action.
Deputy Andrews said: “We need to overcome the challenges we face and to do so we need a coherent plan.”
He argued that government expenditure must be reduced and revenues increased where possible to allow larger transfers into the reserve.
The Deputy also criticised “fiscally expansionary budgets”, which he said contributed to a £118 million deficit in 2025 before investment returns were taken into account.
He acknowledged that borrowing for the hospital project and future economic pressures could limit the States’ ability to make planned payments into the fund.
However, Deputy Andrews said regular transfers, combined with investment returns, could strengthen its growth over successive Budgets and “improve the Island’s resilience”.
The proposal carries staffing implications for Treasury officials and could ultimately involve expenditure reductions and revenue-raising measures.
It is due to be debated by the States Assembly next month.
