Guernsey's public finances turn in a surplus of £45 million, but P&R says the bigger picture shows a funding gap.
The States say the 2025 surplus was largely driven by one-off windfalls, with £34m from the banking sector, which cannot be expected in future.
Investments are up by £119m, which has been put down to changes in the market value of those investments, rather than cash income.
Full-time members of public sector staff grew from 5,154 in 2024 to 5,298 in 2025, an increase of 144, which the States say was because of 'recruitment to planned levels and changes in service demand.'
Deputy Lindsay de Sausmarez, President of the Policy & Resources Committee, says on the surface the accounts look good:
"Income in 2025 exceeded our expectations. What’s also positive is that the funding gap – the shortfall between income and expenditure more generally – has reduced.
"Last year it was estimated at £58m but now that’s down to around £50m for 2025.
"We need to look at a bigger picture and longer-term trends going forward.
"For example, our accounts show by how much our assets such as our infrastructure have depreciated in a year, but that’s a lot less than what we need to spend on maintaining and improving our infrastructure so that it’s fit for purpose.
"That amount we’ll need to spend in future is obviously not included in the accounts, but is included in the funding gap calculations."
Deputy Charles Parkinson, Treasury Lead for the Policy & Resources Committee, says the latest accounts may alter the amount the States need from tax reform:
"It's an established accounting principle that organisations are conservative and cautious in predicting future income, but I remain more optimistic.
"Having said that, it doesn’t change the fact that we need to raise more revenue.
"We just might need to raise less than previously predicted, but won’t know for certain for another couple of years."
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