MOST of the factors driving overspending in the Health Department “don’t look like they’re going away”, according to the government’s chief executive – who has said Jersey will face another “historic policy choice” in deciding what to do with the service.
Andrew McLaughlin made the comments during the hearing of the Public Accounts Committee on Wednesday afternoon.
One of the subjects discussed was the £63 million deficit across government, documented by the latest States of Jersey Annual Report and Accounts.
Health was the largest departmental spending area, exceeding its budget by £28 million in 2024.
“There’s a couple of drivers of that deficit, most of which I think are factors that have been with us since Covid and don’t look like they’re going away,” Mr McLaughlin said.
He explained that this included reliance on agency staff, increases in the price of drugs as well as “tertiary costs” incurred procuring off-Island care.
Noting demand from several other key spending areas such as infrastructure and education, panel member Deputy David Warr asked about the “major consequences” that could result from continued Health Department overspending.
“We had a discussion before about the five historic policy choices Jersey has made which it lives with every day. I think what it decides to do with health will be seen as its sixth historic policy choice,” Mr McLaughlin said.
“It’s as big as its choice on tax and spend, it’s as big as its choice on the Carbon Neutral Roadmap, it’s as big as its choice on building and immigration controls. It’s in that bracket and this is the year, this is the winter, where you’re going to decide it as an Assembly.”
