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2020 budget will make use of States surplus

2020 budget will make use of States surplus

Tuesday 21 May 2019

2020 budget will make use of States surplus

The States has more than £300 million worth of capital projects in the pipeline, according to the Policy & Resource Plan.

The States has published its annual report for 2019, in which each of the objectives of the States plan to make Guernsey 'one of the happiest and healthiest places in the world' are commented upon.

The update also sheds some light on some of the major capital projects that the States has in the offing. 

"The total estimated value of the projects and programmes currently being planned and delivered is in excess of £300m, from immediate routine projects that maintain existing services to major projects that will support the transformation of services over the next ten years, including Hospital Modernisation, Future Digital Services, the Revenue Service, Hydrocarbon Supply and Education Estate Development," the report says. 

PEH hospital hsc

The States recently approved plans to invest £44 million in the first phase of plans to modernise the Princess Elizabeth Hospital. 

"Up to the end of Q1 2019 a total investment of around £47m has been approved for the continued development and delivery of 20 major capital projects. This includes the £29.5m for Waste Transfer Station and £2.2m for Household Waste Recycling Centre. In addition to the large programmes, several smaller projects such as the Bus Fleet Replacement, Health & Social Care’s Local Area Network, Footes Lane Track Refurbishment and the Turntable Ladder Fire Appliance are expected to be completed during 2019 with an estimated value of £6.5m.

"Progress with the development of major projects is improving. This is being done through the provision of seed funding to ensure projects are appropriately resourced and, later in 2019, through the introduction of a small team of capital ‘business partners’ which should provide focused guidance and targeted resource to such projects."

The report says the States needs to strike a balance between capital investment and sustainable spending. 

"2018 was a good year with positive income receipts, particularly in income tax and document duty which, together with an expenditure underspend, meant that there was a surplus that modestly exceeded that budgeted.

"The 2020 Budget Report will include proposals for use of this surplus, taking into account the projected financial position for 2019 and 2020. The 2019 financial position is delicately poised and there are multiple challenges faced in all areas: income; expenditure; and the delivery of savings.

"The States’ Medium Term Financial Plan included a commitment that the burden of eliminating the structural deficit would be shared between taxpayers, particularly those most able to pay (35%), and a reduction in the cost base (65%). The identification of sources of raising additional income is proving challenging; there are a limited range of options available and relying purely on economic growth is not prudent or justified."

Pictured top: Policy & Resources' Jonathan Le Tocq, Lyndon Trott and Gavin St Pier. 

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