Government Plan 2024 to 2027

The Government Plan sets out the funding position for the Government, including income, and capital and revenue expenditure.

This Plan explains the financial context in which the Council of Ministers is taking action to address economic and political challenges, whilst investing in priorities and ensuring the long term sustainability of Public Finances.

Government Plan in brief

Government Plan 2024 to 2027

Government Plan 2024 to 2027 Annex

Foreword by the Chief Minister and Minister for Treasury and Resources

Investing now and into our future

It is our privilege as Chief Minister and Minister for Treasury and Resources to introduce the Government Plan 2024 to 2027, which reflects the commitment of the Council of Ministers to the well being and prosperity of our Island community.

The proposals contained in the plan express our ambition to deliver on Islanders' current needs and invest in their future. It puts the needs of Islanders first and supports hard working individuals and families.

This plan follows the endorsement of the Common Strategic Priorities by the States in October 2022 and builds on the foundation laid out in the Government Plan 2023 to 2026, as we continue to ensure the prudent and effective allocation of public funds.

We want to ensure that taxpayer's money is spent in a way which reflects our wish to meet new priorities whilst continuing to invest in existing essential services and safeguarding the long term financial sustainability of our Island. Our focus is on encouraging consistency, resilience and maintaining a steady course with our public finances.

The Government Plan 2024 to 2027 is linked to individual Ministerial Plans, each developed to outline specific objectives and priorities for 2024. These Ministerial Plans execute the broader vision of this Government Plan, which is to deliver tangible improvements in the lives of Islanders and to create a community where families thrive.

Investing now

Supporting Islanders through the Cost of Living crisis:

• keeping money in Islanders' pockets through increased support and allowances, with a special focus on those most affected by rising prices. Building on tax threshold increases from the previous Government Plan, we are proposing to further raise the threshold before tax is paid for individuals to £20,000 for married and civil partners to £32,050; and for second earners to £7,950
• balancing alcohol duty increases in a manner which recognises the health consequences of alcohol consumption and supports the hospitality industry with below inflation increases
• after freezing road fuel duties in 2023, Ministers are proposing to increase this duty in line with inflation, supporting Jersey's Carbon Neutral objectives.
• continuing to subsidise GP fees through funding from the Health Insurance Fund, making healthcare more affordable for those most in need

Improving access to housing:

• we are renovating the Assisted Purchase Home Ownership scheme, to help address the Island's housing crisis. New criteria will aim to make homeownership more attainable for a broader range of Islanders, particularly first time buyers who require financial assistance to enter the housing market
• recognising the housing needs identified in the Bridging Island Plan and further supporting our policy response to the Island's housing crisis, we are investing in the Island's surface water and foul sewage drainage network. This Government Plan provides an initial investment of £15.6m to meet the needs of the project in 2024 and 2025
• we are proposing to increase the first time buyer stamp duty threshold to £700k, thus easing part of the financial burden and helping people to get on the property ladder 
• improving standards of rental properties through the new landlord licensing scheme

Providing good quality healthcare for the future:

• this Government Plan proposes significant additional investment in the Island's healthcare system, with an increase in spending on health and community services from £249m to £287 million
• in addition to inflation allocations for all departmental budgets, a further £8m per annum has been provided to maintain health & community care standards
• as part of the turnaround of health and community services a financial recovery plan has been developed and will deliver £25m in efficiencies per year by 2025
• the financial recovery plan has developed over 50 schemes which are expected to deliver these savings, through focusing on delivering value for money in healthcare services including improved recruitment and retention of frontline staff in health
• the recovery plan has identified a £15m structural deficit in the financing of the Health and Community Services department. The Government Plan has provided for that legacy underfunding and a further £6m in 2024 whist the financial turnaround is delivered
• Covid-19 has shown the need for greater resilience and support for the public health function, therefore this plan provides £3m on an ongoing basis

Delivering public services:

• this Government Plan funds the provision of affordable public services, supporting the sustainable wellbeing of Islanders whilst protecting services from the worst impacts of inflation
• this includes the provision of education to our children, providing healthcare to Islanders and ensuring public safety through our blue light services and the justice system
• in addition to the investment set out above, Ministers continue to invest in public services for islanders, by providing an additional £24 million per year
• we are also investing in long term projects through a £113 million capital programme in 2024 including infrastructure and public estate developments

Investing in our future

Helping children & families:

• raising childcare allowances to £3,700; with an increase in additional child allowance to £5,550, increasing childcare tax relief to £7,600, and increasing higher childcare tax relief to £19,700
• increasing investment in facilities, including Mont à L'Abbé secondary school and Le Squez youth club. Investing £1.7m in running additional specialist children's homes to support our most vulnerable children. Investing £2.6m in frontline services to support pandemic recovery among children and young people
• ministers are committed to creating an innovative and inclusive education system to ensure that we have opportunities available for all children and young people to learn, progress and prosper both academically and socially
• maintaining investment in the Education Reform and the Inclusion Programme, as well as Early Years and improvements in Children's Social Care, so we continue to ensure all children, young and their families, especially our most vulnerable, can thrive
• expanding the free primary school meals project

Delivering new healthcare facilities:

• the Council of Ministers has agreed to proceed under a phased approach to delivering New Healthcare Facilities by spreading multiple projects over a longer period to manage financial and economic risk and enable greater benefit for the local economy
• this approach allows Ministers and the Assembly the flexibility to proceed with these projects once we are confident they are affordable. It will also provide better opportunities for modern methods of construction and minimise delays in construction due to site size and accessibility
• £52 million in 2024 will allow for the development of the necessary design and planning work to a more advanced stage. We will continue to monitor expenditure carefully whilst delivering the necessary work to provide a robust proposition for the States Assembly to debate in summer next year
• delivering new healthcare facilities and getting the best possible value for Jersey, without further delay, is a top priority. We are working on the programme, which estimates that the total additional funding to deliver an acute facility at Overdale to be a maximum of £675m and a further £35m to make meaningful progress on development of the plans for future phases over this Government plan period. These are current estimates including provisions for inflation and other contingencies