THE government survived the first challenge to its Budget as an amendment criticising “profligate” public spending was defeated, albeit with one minister voting against his colleagues.
Health Minister Tom Binet was among 15 Members to vote in favour of the amendment by Deputy Philip Bailhache, who proposed that withdrawals from the Social Security Fund in the Budget aimed at boosting investment in priority areas should be reduced by a half.
However opponents of Deputy Bailhache mustered 25 votes to leave the St Clement representative defeated by ten votes in the opening vote of a debate that is set to stretch across several days.
Deputy Bailhache said he was “astounded” that the Budget had included proposals to cut the States grant to the Social Security Fund without information on the likely investment returns that would be achieved by the fund, nor a figure for net inward migration.
“The government can only balance the books by taking money from reserves,” he said. “It’s not sustainable – eventually the chickens will come home to roost.
“If you continually plunder reserves they will run out, and future generations will have to pay the bill for our profligacy.”
Treasury Minister Elaine Millar denied that the Budget plans represented “plundering” the Social Security Fund, saying that resources would be used in “the most efficient way for the Island” on priority areas such as health and education.
And Housing Minister Sam Mézec said that the investment plans by the government covered important areas that would reap benefits for the Island in the longer term.
Deputy Jonathan Renouf said that the Budget represented an admission by the government that it could only raise the money to cover its spending plans by dipping into reserves, leaving structural issue to be considered at a later date, after the election scheduled for June 2026. This, he said, was akin to “throwing a hand grenade into the lap of the incoming government”.
Deputy Tom Binet did not speak during the debate, which came after Chief Minister Lyndon Farnham confirmed during question time that there was no collective responsibility for ministers, with an “agreement to differ” applying in some cases.
Assistant Health Minister Barbara Ward said she was not supportive of this aspect of the Budget, saying “we need to get our house in order and live within our means”.
Those voting in favour of the amendment were Deputies Bailhache, Tom Binet, Curtis, Gardiner, Jeune, Miles, Moore, Renouf, Warr and Wilson, alongside Constables Johnson, Labey, Le Sueur, Lewis and Troy. Deputies Doublet, Ferey and Barbara Ward abstained.
Earlier in the day, Deputy Millar had introduced the Budget debate by saying that the government’s financial plans were “rooted in balance and responsibility”.
“Given the ongoing challenges Islanders are facing with the cost of living, we have chosen to protect them from the tax rises we have seen in other jurisdictions,” she said.
Some of the investment within the Budget covered areas “too great to ignore or leave to future governments to address”, Deputy Millar added, including £28 million in healthcare, £8m in children’s services, £3m to expand free childcare, and £7m to make the financial services industry more competitive.
This is a responsible, forward-looking Budget,” she concluded. “It invests in Islanders and supports businesses and does so without raising taxes – it positions Jersey as a stable, confident jurisdiction ready to navigate uncertainty and seize opportunities.”
Ahead of the debate, it was confirmed that nine amendments, including three amended by the Council of Ministers, would be accepted.
These included a stamp duty holiday for those downsizing their properties, the establishment of a public services ombudsman and greater emphasis on issues such as implementation of the recommendations by the taskforce into Violence Against Women and Girls, health outcomes for women, preventative health and the climate emergency.
Amendments covering the establishment of safeguards ahead of any charging for inappropriate use of the Emergency Department, Jèrriais teaching and extending free school meals were also accepted.
This week’s States sitting is set to last all week.
