The revised Budget for 2025, published today along with the 2026 projections, reveal a surplus of £247,000.
The original surplus forecast had been estimated at £29,000.
The States said that document duty and property transfer duties had performed well during the year – more than £500,000 better than predicted – to help the financial position. But the island’s government has been hamstrung by a public sector pay award which was higher than that budgeted for.
That will help to push up the island’s running costs by £126,000 next year, though £74,000 has been saved by not pursuing the development of a Locate Alderney operation and not appointing someone to the role.
Health costs will also increase as the island is forced to support the use of locum doctors at the Island Medical Centre, while contract costs with St John Ambulance are set to rise by £65,000.
The island is forecasting a £133,000 operating deficit next year, with operating costs set to rise by £650,000 on the 2025 Budget.
The Policy & Finance Committee is proposing to raise Alderney Property Tax by 4% on domestic property only, with commercial premises exempted. It will increase fuel duty in line with Guernsey.
And it will look to draw some £140,000 from reserves to balance the books, which will be used to pay for works to develop the island’s Land Use Plan and the island’s contribution to the new Bailiwick Commission. Capital spending, which is funded entirely from the Alderney surpluses, generated by the island’s Gambling Control Commission.
The States has a two-year programme mapped out, and is expecting to collect some £2m. to help pay for an estimated £4m. spend next year, following £1.7m. income received this year.
‘Overall, the 2026 Budget presents a positive financial outlook,’ said P&F chairman Bill Abel.
‘However operational costs continue to increase despite the efforts of all the States departments to contain these costs.’
He warned that the island had done well out of increased activity in the property market and investment returns in recent years, but a change in the financial environment would see the pressure mount to increase future duties.
‘Recommendations for future consideration will of course include exploring alternative revenue sources to diversify the States’ income streams and reduce reliance on a few key taxes,’ he added.
‘We also need to continue to review and optimise operational costs to identify areas for further efficiency gains and long-term solutions for major costs, such as waste disposal, need to be identified and prioritised.’
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