The Government is expecting its operating deficit to reduce this year, but does not think it will see a return to surplus until 2026 – despite the ongoing civil service recruitment freeze avoiding “up to £23m” in annual spending.

The information was published this week in response to multiple written questions from Deputy Max Andrews.

It comes just a few months after the States Employment Board revealed that the civil service recruitment freeze that began in August last year will remain in place until at least March 2026.

Its scope was also extended from staff of grade 11 and above, to those of grade nine and above.

Pictured: Chief Minister Lyndon Farnham said that Government headcount had started to “stabilise”.

Chief Minister Lyndon Farnham said that the total number of government roles had started to “stabilise”, acknowledging an increase of 43 full-time equivalent staff in the last six months.

Deputy Farnham explained that, without the freeze, headcount would “likely” have been at least 325 full-time equivalent roles greater now than it actually is.

“Officials estimate that this is up to £23m per year avoided for now and future years,” he continued.

Balanced budgets are only one part of maintaining the sustainability of public finances

Treasury Minister Elaine Millar

The Chief Minister also noted that spending on consultants and temporary staff had dropped by £29m between 2023 and 2024, adding that the trend “is expected to continue into 2025”.

The savings form part of efforts to tackle the £63 million deficit recorded across Government last year, highlighted by the latest States of Jersey Annual Report and Accounts.

However, Treasury Minister Elaine Millar has said that a return to surplus is not expected before next year.

Pictured: Treasury Minister Elaine Millar said balanced budgets “are only one part of maintaining the sustainability of public finances”.

“The deficit in 2024 was partly anticipated in the Government Plan 2024 and includes the reintroduction of the States Grant to Social Security (£77 million),” she stated in response to questions from Deputy Andrews.

“The Budget 2025, approved by the States Assembly, showed the deficit reducing in 2025, before a return to surplus expected in 2026.

“Balanced budgets are only one part of maintaining the sustainability of public finances.

“Budget 2026 will update forecasts based on the latest economic data and identify further actions required to achieve this.”