Financial surplus this year 'is a possibility'

Policy & Resources president Gavin St Pier outlined a combination of factors that had brought the more positive outlook, including spending controls at Health & Social Care, a good performance in the States investment portfolio and continued public sector expenditure restraint as a result of the measures put in place earlier in the year.

These emergency measures, announced in the summer, included a tightening of States recruitment controls, limiting paid overtime and a delay to capital projects where possible.

Deputy St Pier said that when he gave an update on the financial position during the Budget debate, he confirmed the estimated deficit for 2016 stood at approximately £5m. – this had narrowed from the £10m.-£15m. predicted at the end of the first quarter.

At the time, he also said that the final deficit for 2016 was likely to be lower still and could even be eliminated.

'At a Policy & Resources Committee meeting on Monday, members reviewed the financial performance for the third quarter.

'The quarter saw a continued downward trajectory in spending within Health & Social Care and continued public sector expenditure restraint as a result of the measures put in place earlier in the year.

'Additionally, and significantly, our investment portfolio performed very well and the predicted returns will further improve the general revenue position.

'Should these positive developments be maintained, there is the potential for States finances to be in surplus by the end of the year.

'I must at this point caution that there are many caveats to that projection, including market conditions during the last quarter, so I would not at this stage wish to oversell our improved financial position.'