In a surprise letter of comment on the Policy & Resources Committee’s Budget, due to be debated by the States next week, Scrutiny highlighted a 6.8% rise in pay costs as part of ‘unsustainable spending growth’.
‘The principal driver of higher expenditure remains pay. Total pay costs are now forecast at £360m. – a significant increase and a reflection of the scale of the public sector as the island’s largest employer,’ it said.
‘The SMC believes there is limited evidence that the size or cost of the workforce is being effectively managed. Greater clarity, accountability, and discipline are required around workforce planning, pay policy, and productivity.’
It has called for annual efficiency savings of at least 1% of total expenditure.
The committee has also repeated president Andy Sloan’s concern about forecast cash outflow of £115m., saying it was unsustainable and would continue to erode financial resilience.
‘We felt compelled to issue this statement because the figures speak for themselves,’ said Deputy Sloan.
‘The 2026 draft Budget shows the States is set to burn through around £115m. of cash next year, roughly 15 % of revenue spending. That’s not a technicality – it’s a serious fiscal problem that goes to the heart of the island’s financial credibility.’
The letter also describes the Budget as a ‘holding exercise’ because of the general election timetable and said that new States members had no meaningful input into its preparation.
Scrutiny said it was concerned that ‘this weakens both political accountability and effective governance of the public purse’.
‘The Budget fails to move the States towards financial sustainability. It lacks context, transparency, and fiscal discipline. The difficult decisions required to restore balance have once again been deferred.’
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