Select a region
Health will not oppose it's budget for next year after Policy & Resources denied its request for an extra £10.4m every year.
All committees, apart from HSC, were asked to reduce yearly spending by 2.5% but this failed in almost all cases, and total public expenditure is forecast to rise by 1% in real terms in 2024.
HSC, the highest spending committee with a proposed budget for next year of £235m, wanted it to rise by more than £10m from next January alongside a £5m inflation allowance, but P&R refused and offered a £4m uplift instead.
That single bid was higher than all other committees’ requests combined.
Health has now said it wasn’t surprised at the decision given “the financial challenges facing the States”, but said what P&R proposed instead “falls significantly short” of its requirements.
No amendment will be laid against the budget when it’s debated in November to increase its annual funding, which P&R’s treasury lead, Deputy Mark Helyar, said was possible.
“Instead, we will work closely with P&R to face genuine cost pressures together. We are writing to P&R in response to the budget allocation to set out the particular challenges that HSC will face in 2024 as a result of the allocation,” HSC said.
It wanted to spend £3m, which had been provided in the previous years’ budget, to pay for off-island demand and key worker accommodation, around £3m as a “buffer” for agency health staff, and £4.4m for demand related pressures, being experienced now or expected to occur, across multiple service areas.
Pictured: A breakdown of proposed government department spending for next year.
P&R said it “cannot support that level of additional spending as it is not affordable and is instead proposing a £4m increase, but it fully appreciates the enormous challenge faced by the health service in terms of staying within this budget”.
It accepted that HSC is “facing a very difficult year ahead” and may struggle to deliver services within budget due to rising demand.
Health says it will put the £4m extra towards “the most material and immediate pressures” but expressed frustration over being denied £1m to invest in the allocation of key worker accommodation.
“It is important to clearly set out the full extent of the challenges being faced and to then work together to best manage and mitigate them.
“The budget also affords some flexibility in relation to off island demand and expenditure through the Budget Reserve.”
The draft budget - at a glance
Property tax shake-up key feature of 2024 budget
States companies need millions again to wash faces next year
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.