29 September 2026
The Council of Ministers has today lodged its proposed Budget for 2027 and Common Strategic Policy.
Budget 2027 is focused on bringing public spending under control, restoring financial discipline and strengthening Jersey’s financial position.
It aims to start delivering on the Council of Ministers’ priorities for the next four years, as set out in the Common Strategic Policy:
- maintain financial stability
- restore competitiveness
- targeted action on the cost of living
- invest in Jersey
Supporting Islanders, targeted action on the cost of living
Budget 2027 provides support for those who need it the most:
- personal allowance rises to £21,850, Islanders can earn more before they pay tax, meaning more money stays in their pockets
- child allowance rises to £4,050, more support for families with children
- childcare relief rises to £8,300 and enhanced childcare relief rises to £21,550, more help with the cost of childcare
- fuel duty frozen for 2027, no duty increase at the pump
- subsidised nursery care for 2-3 year-olds increases by £2,150 per child, up from 15 hours to 20 hours a week
- a one-off £200 top-up to the Community Cost Bonus
- free school meals extended to secondary school pupils on the Jersey Premium funding scheme, £850 per child
- family support payment of £250 per school age child for households earning up to £80,000 a year
- Parental Grant doubled to £1,800 for families with newborns or adopting a child
Protecting our future and maintaining financial stability
Budget 2027 is centred on financial discipline and marks a return to balanced budgets every year. Growth and expenditure have been restricted to existing Assembly commitments, public safety, health and support with the cost of living.
The Budget delivers £21 million in savings by streamlining the public sector workforce, together with existing reductions in public sector pension contributions.
This reflects the Council of Ministers’ commitment to more efficient and less complex Government with fewer management layers. It helps to ensure public resources are used in a way that brings the best value and impact for Islanders.
Investing in Jersey
Budget 2027 is a step toward delivering Investing in Jersey, the Government’s 25-year programme to renew Jersey’s infrastructure, public buildings and public realm.
It is the first budget to implement the Jersey Capital Investment Fund, which will safeguard and manage long-term investment in essential projects.
By using windfall Pillar Two receipts to help pay for the hospital project, we have been able to reduce significantly the need to take funds from the Strategic Reserve or commit to further borrowing.
Growing the economy and restoring competitiveness
Financial discipline alone will not secure Jersey’s future prosperity. Sustainable public finances depend on a productive and growing economy.
The Council of Ministers is committed to securing Jersey’s competitive edge in financial and related services, and in the local economy, and to cutting unnecessary red tape and regulation.
The Chief Minister, Senator Lyndon Farnham said: “The Common Strategic Policy sets the direction for this Government over the next four years, and this Budget begins to put the resources behind it. It strikes a careful balance: helping Islanders with the pressures they face today, while investing in Jersey’s future and maintaining strong public finances.
“It includes practical measures to ease pressure on household finances, particularly for families and those facing the greatest cost-of-living pressures.”
The Minister for Treasury and Resources, Senator Alan Maclean said: “The principle behind this Budget is straightforward: taxpayers’ money should be prioritised to where it delivers the greatest value to Islanders.
“Government must live within its means and be prepared to make difficult choices when the evidence shows that money can be better used elsewhere.
“This Budget marks an important step towards tighter control of spending and strengthening of the Island’s financial resilience. It puts the hospital on a more affordable footing and lays the foundations for the move to greater financial discipline with three-year budgets from 2028.”
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