Alderney States more than halved expected losses in 2023

The island had a deficit of £222,000 over the course of the year, but had expected that to be more than £500,000 at the beginning of the year.

‘This represents a significant improvement when compared to the planned deficit agreed in the original budget for 2023, as well as the revised budget agreed in October,’ said Policy & Finance Committee chairman Nigel Vooght.

‘As we head into 2024, we are in a reasonable fiscal position and we remain committed to looking at new opportunities to generate income.’

The States spent £3.748m. during the year and took in £3.526m. Operational activities made less money than expected, but £134,000 more than in 2022.

There was a good season at the harbour with more mooring income from visitors, and the harbour deficit was cut by £22,000 to £134,000, but spending increased significantly – States Works spent more on waste collection and disposal, £36,000 more was spent in marketing tourism, and ambulance cover was £53,000 more than budgeted, though less than the revised budget. Health spending was also up £82,000 due to higher costs of locum doctors.

Income fell £1.2m. due to a notable reduction in property sales, which caused a substantial reduction in document duty and property transfer duty.

‘However, a prudent budgeting approach ensures that exceptional duty receipts continue to be regarded as an unexpected bonus,’ said Mr Vooght.

Capital spending continues to be funded by surpluses from the Alderney Gambling Control Commission, which was £1.9m. in 2023, £648,000 more than 2022.

The island spent £1.5m. over the year, with the most expensive projects concluded being a sewer extension, and the replacement and refurbishment of vehicles and plant replacement. Spending continues on a pontoon extension, which cost £135,000 during the year, and the extension to the Royal Connaught Care Home, which cost £672,000. The operational deficit is covered by the island’s general reserve, established in 2021, which now stands at £3.7m.

£280,000 sits in the island’s economic development reserve fund, which funds the annual summer ferry subsidy, among other projects.

The deficit on the pension scheme, which was closed to new entrants in 2013, has gone up from £1.4m. to £1.75m., while the value of funds in the scheme rose from £5.7m. to £6m. The accounts are due to be debated by the States of Alderney this week.