INTERNATIONAL Development Minister Carolyn Labey said that a potential drop in the proportion of overseas aid contributions Jersey makes would not be a “credible look” for the government.
Speaking in the States yesterday – the day the Council of Ministers released its 2027 Budget – Deputy Labey made the comments as she faced questions over a planned change to the way Jersey Overseas Aid’s budget is formulated.
It is currently linked to the size of the Island’s economy, with funding most recently set at 0.3% of Gross Value Added – an economic metric that measures the value of goods and services produced.
The agency’s latest annual report notes that this is “broadly in line with the OECD donor average of 0.33%”.
However, the proposed Budget unveiled by the Council of Ministers this week contains plans to freeze the overseas aid allocation at its 2026 level of £22 million from 2027 to 2030.
The document notes that this would save £1.5 million in 2027, £2.5 million in 2028, £3.5 million in 2029 and £4.5 million in 2030.
“This approach releases £12 million over the period compared with the current GVA based formula, contributing towards additional investment in targeted support for Islanders facing cost-of-living pressures and the implementation of the Violence Against Women and Girls strategy,” it stated.
“This strikes a balance between Jersey’s international responsibilities and the needs of the local community at this time.”
It also said that, under a spending freeze, Jersey’s official development assistance contribution “would fall from 0.3% to around 0.25% of GVA over time”.
During question time yesterday, Deputy Labey noted a funding drop of £400,000 this year under the current formula – but said she felt that the 0.3% figure was “a good aspiration” and that “in an ideal world, I’d like to stick with it”.
She acknowledged that the change proposed was in recognition of the cost-of-living crisis and “other pressures on the Budget”, but later added that: “I will, in future, when we’re discussing the percentage – which will be next year – want to retain or go back to [it] because invariably as our income, as our GVA goes up, the percentage level will fall.
“I don’t believe that is a good, credible look for an international player such as Jersey.”
Speaking to the JEP after the sitting, Deputy Hilary Jeune said she felt Deputy Labey had not made “a strong enough defence of the importance of linking it with GVA”.
She added: “If [the minister] is asking the States Assembly to take note of that change in the Budget, and she is not happy with it, it did not feel that she was presenting an argument that other Members would see a concern as well.”
But Deputy Labey rejected any assertion that she had not been prepared to fight for the funding formula and said that “everybody is having to compromise with the current budgetary pressures”.
“We are currently in a cost-of-living crisis, we have got huge amounts of expenditure coming out with the hospital and other pressures,” she told the JEP.
The minister explained that, “so we as Jersey Overseas Aid know what we are doing as well”, she had agreed to fix the monetary value of the funding at this year’s level.
She stressed the point she had made on the Chamber floor that, “I have agreed with the Treasury Minister that we would discuss percentages again next year”.
Deputy Labey added that the change could lead to improved VAWG funding.
