THE States should restore its full grant to the Social Security Fund from 2028 to protect the long-term health of the Island’s public finances, according to a proposition lodged by a backbench politician.
Deputy Max Andrews is calling on the Treasury Minister to reflect the reinstated grant in the 2027-30 Government Budget.
Deputy Andrews argued that the grant was only partially withdrawn in the 2026 Government Budget because the government needed the money to fund £52 million of additional spending while preventing the Consolidated Fund from remaining in deficit.
He said that over the past six government budgets, States Members have approved £334 million of “growth bid” expenditure, including £276 million between 2020 and 2024.
In support of his case, the St Helier North Deputy points to the Fiscal Policy Panel’s assessment of the 2026 Budget, which warned that it proposed “an increase in day-to-day spending that exceeds revenue growth” while relying on borrowing and drawing down reserves.
The panel also concluded that increasing spending while Jersey’s economy was already operating at capacity was “likely to exacerbate domestically generated inflation”.
Deputy Andrews argued that unless government expenditure is reduced, the partial withholding of the grant will continue, with between £42 million and £45 million expected to be transferred annually from the Social Security Reserve Fund to the Social Security Fund between 2027 and 2029.
“Given the public sector has experienced exponential growth, each minister should be tasked with securing savings to department budgets to ensure the full States Grant can be reinstated in full,” he said.
“Additionally, work must be undertaken to deliver efficiencies across government departments.”
The proposition also criticised the recent decision to transfer £114.3 million from the Social Security Reserve Fund to compensate for reductions in the States grant in 2025 and 2026, describing it as setting “a dangerous precedent”.
If approved, Deputy Andrews says the proposal would give ministers time to reduce spending and introduce revenue-raising measures before restoring the full grant from 2028, while ensuring new growth bids are deferred until Jersey’s finances return to a sustainable footing.
It is due to be debated in September.
