The cost of Jersey’s government has once again topped £1 billion – but is operating with a £262 million surplus after investment returns.
The figures were revealed in the 2025 States Annual Report and Accounts.
Published today, the report points to a solid investment performance – while also revealing patterns of rising borrowing and a growing pressure on social services.
Express sifted through the mammoth 288-page document and drilled down to a selection of the key takeaways and performance indicators…
Investments
Once again, Jersey’s investments have grown – with the States’ share of the Common Investment Fund rising to £4.15 billion, up from £3.87 billion the year before.
Despite this £280 million increase, though, the net gain doesn’t quite match up to growth in 2024 – during which net gains rose by £509 million.
What the government refer to as “strategic investments” – Andium Homes, Jersey Electricity, Ports of Jersey and JT – continue to rise in value, increasing from £1.5 billion in 2024 to £1.62 billion in 2025.
Position
The government closed 2025 with an encouraging £262 million surplus after investment returns.
Moreover, the island’s balance sheet increased by £600 million, rising from £8.3 billion to £8.9 billion.
The government will also be pleased to have just exceeded its £20.3 million savings target by a total of £4.5 million, helped to some extent by a 37% reduction in consultant spending.
Borrowing
Interestingly, the report finds a slight shift in Jersey’s attitude to borrowing.
“Total external borrowing” rose to £934 million from 864 million the previous year.
Essential to this increase is a more pronounced reliance on short-term borrowing: the States drew 183.6 million from its revolving credit facility, almost double the £96.2 million used in 2024.
Meanwhile, the overdraft fell from 36.3 million to £18.1 million – another indicator of a revised approach to short-term cash flow.
Interest costs also increased from £29 million in 2024 to £33.6 million in 2025, reflecting high short-term borrowing.
Tax
Total receivables from tax income actually fell from £890.2 million in 2024 to £848.8 million last year.
As part of this, income tax receivables grew from £20.2 million to £29.1 million – with GST receivables also rising steeply from £1.35 million to £3.9 million.
The figures also point to a stricter stance on older debts: the impairment provision for tax receivables increased from £24.7 million in 2024 to £38.5 million in 2025.
Meanwhile, tax written off – which means it will not be collected – also increased from £4.62 million to £6.55 million.
Workforce
Despite the government’s ongoing attempts to curb public-sector growth, staff costs climbed to £695 million, a 5% increase on 2024.
Exit packages cost a total of £1,262,657, covering 45 departures – including 13 settlement agreements totalling £452,952.
The average payment across settlements and redundancies fell from £32,195 in 2024 to £28,059 last year.
Sickness absence also increased markedly. Total hours lost rose from 557,344 (75,317 days) in 2024 to 636,142 (85,965 days) in 2025.
Average sick days per employee increased from 8.8 to 9.7.
Remuneration
The Executive Leadership Team saw some of the most dramatic rises in pay:
- CEO Andrew McLaughlin: £325–330k, up from £220–230k
- Chief Officer Tom Walker: £325–330k, up from £220–230k
- Chief Officer Richard Corrigan: £270–275k
- Chief Officer Sophie Le Sueur: £210–215k
- Interim Chief Officer Keith Posner: £225–230k
Senior officers outside the leadership team also saw increases:
- Chief of Police Robin Smith: up £5,000 to £215,000
- Judicial Greffier Rebecca Morley‑Kirk: up from £210,000 to £230,000
Grants
Total grant expenditure rose by 2.2%, reaching just over £91 million, up from £89 million in 2024.
The report identified the introduction of the Living Wage Programme in 2024 as a significant contributor to the increase.
Notable grants include:
- Battle of Flowers: £128,000 to enhance parade presentation and £120,000 to repay historic creditors
- Jersey International Air Display Ltd: £118,000
- Bureau de Jersey Ltd: £126,000 to support relations with France
- Jersey farming support: increased from £189,000 to £400,000
- Opera House operating costs: increased from £400,000 to £630,000
“A strong financial position”
Speaking to Express, Chief Minister Lyndon Farnham said the report points to a “strong financial position”.
“We’ll certainly be handing over a much stronger financial position to the new government than we inherited,” he said.
“It’s important the next government, and the next Assembly, don’t let that slide.”
He added: “I’m mindful that although we are a wealthy island, there are many islanders who continue to struggle, and it’s important that we prioritise our spending to make sure we provide the services and the support for those who need it most.”