A ‘no money’ message
The next States was sent a bleak message last night – it will have only £150m. to fund key capital projects with an estimated price tag of more than £1bn.
Policy & Resources’ latest policy letter recommends continuing with capital projects already agreed, at a total cost of hundreds of millions of pounds, but stretching them out over a longer time period until midway through the next States’ term.
Cutbacks are now expected to two of the most high-profile projects – the redevelopment of the Princess Elizabeth Hospital and improving Alderney’s airport – before they are re-debated by the States later this year.
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‘Having reviewed the portfolio of infrastructure projects the States has previously agreed, it is crystal clear to our committee that all are essential and must continue. There are no “nice to haves” here,’ said P&R president Lyndon Trott.
Those projects also include the redevelopment of The Guernsey Institute, flood defences and new social housing.
‘The only viable options are to restrict the funding available to schemes or allow the portfolio period to extend into 2027 to be able to use surpluses generated in those years to fund the commitments,’ said Deputy Trott.
‘It should be noted, however, that those surpluses will only be generated if the next States implements the tax changes this Assembly agreed during the 2025 Budget debate.’
