Jersey Finance to face £400k Government funding cut

Wednesday 16 October 2024

Jersey Finance will have £400,000 of Government funding cut next year as part a wider savings plan, it has emerged.

The Economic and International Affairs Scrutiny Panel met with Financial Services and External Relations Minister Ian Gorst yesterday to discuss the proposed departmental budget for 2025 to 2028.

The hearing revealed that budget cuts and operational restructuring are set to take place within the Minister’s portfolio in the coming years as part a £700,000 savings plan for his department.

Pictured: Jersey Finance promotes the island as an international financial centre.

Deputy Gorst revealed that there would be a £400,000 funding cut to Jersey Finance from 2025 as part of this.

The arms-length-organisation, which promotes the island as an international financial centre, is heavily funded by the Government.

Last year, a £6.4m Government grant made up 83% of Jersey Finance's total funding, according to its annual report – with the rest coming from local finance firms. 

Deputy Gorst told the Scrutiny Panel that he had fought to protect the grant but ultimately had to compromise as part of broader cost-saving measures.

"The only area that I fought for but ended up in a compromised position was the grant to Jersey Finance," he said.

Deputy Gorst also revealed that the department has implemented a 20% cut in projected growth figures, including pay awards, and there is no growth planned for the 2026-2028 budget period.

Other savings include not renewing contracts for two fixed-term contractors in the Financial Crime Strategy Team, following the “successful completion” of the MONEYVAL assessment of Jersey’s compliance with international financial crime standards.  

Pictured: Chief Minister Lyndon Farnham has repeatedly stated his belief that Government tries to do too much.

There have also been reductions to the funding of the Channel Islands Brussels Office (CIBO) due to internal restructuring, according to the Minister.

The department has also merged the financial services and financial crime policy teams, resulting in fewer staff. 

Deputy Gorst acknowledged concerns about the impact on staff morale but said that the cuts were part of a wider Government initiative to reduce non-frontline roles.

Chief Minister Lyndon Farnham has repeatedly talked about “curbing” spending in the public sector and “re-sizing” the Cabinet Office since he stepped into the top job earlier this year. 

Earlier this month, cuts to the Government's communications unit saw the closure of the central Press Office and the redeployment or redundancy of at least 11 staff members.