Slow spending growth now. Restore it to a sustainable level over time. Protect essential services.
Jersey is not short of money. But we are increasingly short of control.
Year after year, spending rises faster than confidence. Islanders see it in waiting times, in housing pressures, and in the steady sense that the system is becoming harder to steer. The question is no longer just whether we spend more or less. It is whether we spend well enough to sustain the island we want to live on.
Making government spending sustainable is not about cuts. It is about discipline, clarity, and redesign — grounded in what our economy can realistically support.
The Problem
At present, three pressures are pulling in the wrong direction:
• Structural overspends, particularly in health and major programmes
• Fragmented decision-making, where costs are pushed between departments
• Limited visibility, making it difficult for Islanders to see what is working
This creates a cycle: more money is committed, but outcomes don’t improve at the same pace. Over time, that erodes trust.
At the heart of the issue is a simple disconnect: public spending is not consistently anchored to the performance of the island’s economy.
A Clear Principle
Jersey should aim to keep its day-to-day (revenue) government spending at a sustainable share of the economy – measured over time as a proportion of GVA.
Not as a rigid cap.
But as a discipline.
Because if spending drifts too far from the economy that funds it, the system becomes unstable – and Islanders feel the consequences.
At the same time, we must be clear about one crucial distinction:
Day-to-day spending should be disciplined – but long-term investment must be protected.
Capital investment in infrastructure, housing, and economic development should be planned and financed separately – as we are beginning to do through the Capital Investment Fund.
That is how responsible governments create both stability and growth.
Three Practical Mechanisms
1. Multi-Year Spending Discipline (with real consequences)
Jersey must continue to move firmly to multi-year departmental settlements, aligned to a sustainable share of the economy.
Departments should have:
• Defined budgets over 3–4 years
• Flexibility to manage within them
• Accountability for staying within them
Where overspends occur, there must be structured recovery plans – not simply additional funding.
This is how control is restored.
2. Outcome-Based Budgeting (link money to results)
We need to shift from funding activity to funding outcomes.
For each major area of spend:
• What is this meant to achieve?
• How will we measure it?
• Is it working?
For example:
• Health: reductions in waiting times and delayed discharges
• Housing: affordability and access, not just units built
• Social support: early intervention, not crisis response
If outcomes are not improving, funding models should change – not just increase.
3. A Stronger Central Finance Function (that can say “no”)
A sustainable system requires a centre that can hold the line.
This means strengthening the Treasury function so it can:
• Challenge business cases rigorously
• Compare value across departments
• Stop unaffordable commitments early
Not to centralise power – but to ensure that every pound spent reflects the island’s priorities and capacity.
Further Measures
Alongside these core changes, we should also:
• Introduce regular public reporting on spending against outcomes
• Strengthen the link between capital investment and long-term operating costs
• Review Arm’s-Length Bodies and States-Owned Entities to ensure value and alignment
• Use digital tools to improve real-time financial oversight
• Build a clearer connection between economic growth and public spending capacity
Closing
Sustainable spending is not a technical exercise. It is the foundation of everything else.
Without it, we cannot deliver better healthcare.
We cannot address housing.
We cannot invest in our future with confidence.
With it, we can.
This is the kind of practical reform I will argue for – not promises, but systems that work better and last longer.
And I would genuinely welcome your view:
Where do you think government spending is working – and where is it not?
Contact me on bernardplace2026.com or bernardplace2026@gmail.com
