JERSEY’S government spends a higher percentage of its total expenditure on health than any other developed country, according to the latest public spending statistics.
Statistics Jersey yesterday released its public spending statistics report for 2024, which revealed that government expenditure rose by £86.3m last year to reach £1.79bn. This 5.1% increase was less than the 6.3% recorded in 2023.
Health spending alone increased by £15.2m last year to reach £515.7m. The report stated that this was driven by increased expenditure on hospital services, which rose by £12.7m, and outpatient services, which increased by £4.7m.
The percentage of total expenditure spent on health in Jersey last year (29.4%) was
higher than in any OECD country.
However, the Island spent less on health as percentage of its GDP than several countries, including the UK.
The report said: “Jersey’s relatively high health spending will likely be influenced by several factors unique to small island jurisdictions.
“With a smaller population, fixed healthcare costs, such as maintaining hospitals, specialised medical services, and infrastructure, can represent a larger share of total spending.
“Additionally, economies of scale are harder to achieve in smaller jurisdictions, which can result in higher per capita costs.
“Furthermore, attracting and retaining healthcare professionals in a smaller jurisdiction, may require comparatively higher wages or additional incentives, contributing to the overall costs of delivery.”
The data revealed that 73% of all government spending was in social protection, health, and education.
The health division and the old age and sickness and disability groups within the social protection division account for almost half (48.3%) of all general government expenditure.
This highlights the significance of demographic changes in shaping overall spending levels, according to Statistics Jersey.
The report added: “One of the key factors influencing levels of public expenditure is demographic change.
“Population ageing, in particular, is expected to increase demand for certain services, notably in health and social protection, though other factors such as policy choices, service expectations, and wider economic conditions will also continue to play a role.”
