Treasury lead Charles Parkinson told the States yesterday that the financial position at the end of April was a surplus of £15.9m., £1.1m. behind budget.
‘Basically we’re pretty much on track,’ he said.
Revenue was underperforming by more than £4m. but that was partially offset by cost savings of £3.2m., and there was an operating surplus of £7.3m. – ‘broadly in line with expectations’, supported by stronger trading performances and lower spending on non-capital projects.
But the overall position was impacted by investment returns weaker than expected and 39% behind budget, primarily driven by the war in Iran, and income from customs duties ‘significantly underperforming’ at £3.8m. behind budget. Net spending by committees was £2.6m. favourable to budget, he said, which includes Health & Social Care, despite adverse pressure in off-island acute care.
The further forecast for the rest of the year is for the figures to deteriorate, though a full-year revenue surplus of £14m. is still expected, with the biggest spending implications once again for HSC, especially on off-island acute care, and overspends expected on digital and technology projects.
‘But Guernsey is not broke. In fact, Guernsey has a pretty robust financial position, and we can all be very glad of that.
‘That’s the result of years of economic prosperity and generally sensible States controlling expenditure.
‘That doesn’t mean we don’t have a problem, and that’s something we will have to address next month, but we’re not in crisis, the island should not be downcast or despondent about our financial situation, Guernsey is in pretty good shape, and that’s what the 2025 Accounts say.’