The Health & Social Care and Home Affairs Committees said yesterday that an amendment to reduce their 2026 cash limits by £8.6m. and £2.5m. respectively would force them to reduce essential services at short notice.
Policy & Resources is recommending increasing HSC’s budget by 4.6% and Home Affairs’ budget by 5.4%.
But Scrutiny president Andy Sloan has submitted a counter-proposal to hold their spending at 2025 levels, which would mean a cut in real terms, as part of a bid to lower committees’ total cash limits by £27m.
HSC president George Oswald said yesterday that sizeable budget cuts were unrealistic without damaging services.
‘As a committee we are acutely aware of the financial pressures facing the States as a whole. However, we are seeing increasing complexity in patients’ needs, greater pressure on hospital and community services, and growing demand for mental health and social care support,’ said Deputy Oswald.
‘To continue to meet these challenges, we simply must expand our capacity and our services. A cut of this magnitude would force HSC to cut services, which would have severe consequences on our community’s most vulnerable service users.’
When Deputy Sloan submitted his amendment on Monday, he described it as ‘not austerity, but realism’ in response to P&R’s draft budget which forecasts a cash deficit of £115m. and a structural deficit in public finances of nearly £80m. in 2026.
He and his seconder, Deputy Haley Camp, believed that voters expected the new Assembly to change course after the previous States oversaw the fastest increases in public spending for 20 years.
Home Affairs president Marc Leadbeater said yesterday that approving the amendment would have unintended consequences for key public services.
‘The explanatory note states that the amendment seeks to send a strong message that Guernsey’s government must live within its means, which is true, and is something we must work towards,’ said Deputy Leadbeater.
‘It also states that the intention is not to undermine essential services, which unfortunately is exactly what it would do.
‘Home Affairs would undoubtedly have to cut services if this amendment was passed. £2.5m. is not a sum which can be easily saved with quick cost efficiencies, and this would inevitably have an impact on the essential roles our services play in serving some of the most vulnerable in our community.’
Deputy Sloan’s amendment would also take approximately £10m. off the budget reserve for 2026 which will fund new projects and pay awards not yet settled with unions.
P&R president Lindsay de Sausmarez and treasury lead Gavin St Pier were unavailable to answer questions about the effect that move could have on public services.
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