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The body responsible for representing and promoting Jersey's finance sector on the international stage will have £400,000 of Government funding cut next year – despite a Minister's attempt to fight against its inclusion in broader cost-saving plans.
Deputy Ian Gorst, who holds responsibility for financial services, yesterday explained how he had pushed back on the plan as he was questioned by the Economic and International Affairs Scrutiny Panel yesterday on the proposed Budget for 2025-2028.
The panel heard 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.
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.
Pictured: Jersey Finance promotes the island as an international financial centre.
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.
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.
When he took on the top job at the beginning of this year, Chief Minister Lyndon Farnham spoke about the Government trying to do too much and a need to go back to basics by prioritising issues like the cost-of-living crisis, affordable housing, and challenges with the healthcare system.
Since then, he has repeatedly spoken of “curbing” spending in the public sector and “re-sizing” the Cabinet Office.
Pictured: Chief Minister Lyndon Farnham has repeatedly stated his belief that Government tries to do too much.
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.
The proposed Budget for 2025 also saw several capital projects due to be undertaken by Government delayed, cancelled or unfunded – including plans for a new secondary school at Mont à L’Abbé, a specialist accommodation facility for islanders with learning difficulties, and the refurbishment of the crematorium.
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