'Discipline needed over States cuts'

Since announcing a £15m. surplus in 2016 there has been signs that some are softening on the need to continue with public sector restraint – with cuts of 5% planned for 2018 and 2019 following a 3% reduction for this year.

States spending has been in deficit since 2008, meaning that it has eaten into the island's reserves as well as failing to meet guidelines on capital spending.

Much of the success of last year was also down to one-offs.

'As I made clear when confirming our year-end surplus of £15m., in terms of our long-term financial outlook we are by no means out of the woods yet,' said Deputy St Pier.

'That we ended 2016 in surplus is a significant achievement to be celebrated, however substantial fiscal challenges remain so it is crucial that we continue with firm financial discipline and pay restraint. Many of the factors that contributed to the surplus were one-off in nature and many of the pressures remain. As such, we must not take our foot off the pedal in our collective efforts to drive down the cost of providing public services.'

The States agreed as part of the 2017 Budget that all committees apart from Health & Social Care would reduce spending by 3% this year.