‘This is a positive and important indicator of financial stability, but it does not mean the island has all the money it needs,’ said Conseiller Natalie Tighe, deputy chair of the Policy & Finance Committee.
But the island ran an operating deficit of £57,000, due to £54,230-worth of unforeseen expenditure on emergency stabilisation works at La Coupee and a £177,873 impairment relating to the island’s electricity project.
This has been described as an ‘accounting adjustment’ and not a cash loss, reflecting standard accounting treatment for past expenditure associated with the electricity project which, because the project is not currently being progressed, can no longer be carried as an asset in the accounts and must instead be recognised as an expense in the year.
Chief Pleas said that without it, the Accounts would show a surplus, and the underlying work still remained valid and would be used or built upon in the future.
It added that the figures were a positive indicator of improved financial resilience, but reserves were insufficient to meet the island’s long-term needs.
Urgent infrastructure capital projects still need funding including the island’s incinerator, sewage treatment, further works on La Coupee and safety works at the Harbour Quarry.
‘Property Transfer Tax was significantly above budget in 2025, but that income can fluctuate widely from year to year and cannot be relied upon as a guaranteed or recurring source of revenue,’ said Conseiller Tighe. ‘While the improvement in cash reserves strengthens resilience, reserves remain below where they need to be. Sark still faces major essential infrastructure costs, including a new incinerator, sewage treatment, further works at La Coupee, and making the Harbour Quarry safe.
‘These accounts show progress, but they also reinforce the need for continued financial discipline, careful decision‑making, and sustainable funding to ensure the island can meet its future obligations.’
You need to be logged in to comment.