The States of Jersey Financial Report and Accounts 2014 have been released today by the Treasury and Resources Minister. The highlights are:
• Strong Balance Sheet – the balance sheet has grown further in 2014 with an increase in net asset balance of £73 million to £5.7bn, largely as a result of investment returns.
• General Revenue Income was maintained despite challenging circumstances but less than originally forecast.
• Capital Expenditure, so vital to stimulating the economy – Departments, Trading Operations and Andium Homes spent a total of £75 million in 2014 compared to £52 million.
• The strength of the balance sheet not only allowed for capital expenditure to grow but also enabled vital spending on healthcare and investment in support of the economy and jobs to be maintained.
• Investment Returns - Special Funds saw strong returns on their investments, with the Strategic Reserve increasing by £44 million from £743 million to £787 million, and the Social Security (Reserve) Fund by £95 million from £1.15bn to £1,25bn.
• Andium Homes – the Housing Department was successfully incorporated into Andium Homes on 1st July 2014 and the results of the new wholly owned company have been consolidated in these Accounts.
• Public bond – a £250 million public bond was issued in 2014 to fund vital investment in social and affordable housing largely through Andium Homes. To support this, Jersey was accredited with an excellent international credit rating of AA+ with a stable outlook and this has been maintained into 2015.An operating deficit of £25 million was recorded as States departmental spending exceeded States’ General Revenues Income.Treasury and Resources Minister, Senator Alan Maclean said: "Like many other governments our revenue expectations were lower than forecast in 2014. Despite these challenges, we still have a strong balance sheet and options to address future funding pressures. But we must make the changes necessary to the public sector structure, and the way we manage our finances, if we are to ensure that this continues to be the case.
• Strong Balance Sheet – the balance sheet has grown further in 2014 with an increase in net asset balance of £73 million to £5.7bn, largely as a result of investment returns.
• General Revenue Income was maintained despite challenging circumstances but less than originally forecast.
• Capital Expenditure, so vital to stimulating the economy – Departments, Trading Operations and Andium Homes spent a total of £75 million in 2014 compared to £52 million.
• The strength of the balance sheet not only allowed for capital expenditure to grow but also enabled vital spending on healthcare and investment in support of the economy and jobs to be maintained.
• Investment Returns - Special Funds saw strong returns on their investments, with the Strategic Reserve increasing by £44 million from £743 million to £787 million, and the Social Security (Reserve) Fund by £95 million from £1.15bn to £1,25bn.
• Andium Homes – the Housing Department was successfully incorporated into Andium Homes on 1st July 2014 and the results of the new wholly owned company have been consolidated in these Accounts.
• Public bond – a £250 million public bond was issued in 2014 to fund vital investment in social and affordable housing largely through Andium Homes. To support this, Jersey was accredited with an excellent international credit rating of AA+ with a stable outlook and this has been maintained into 2015.An operating deficit of £25 million was recorded as States departmental spending exceeded States’ General Revenues Income.Treasury and Resources Minister, Senator Alan Maclean said: "Like many other governments our revenue expectations were lower than forecast in 2014. Despite these challenges, we still have a strong balance sheet and options to address future funding pressures. But we must make the changes necessary to the public sector structure, and the way we manage our finances, if we are to ensure that this continues to be the case.
"The global economic downturn has continued to affect the island, but the first signs of growth in the economy are emerging. For the first time since the recession started in 2008, the Fiscal Policy Panel has predicted that 2014 will have delivered GVA growth. Furthermore, an additional 400 jobs were created in financial services. Our international reputation and strength of our public finances has also been confirmed in 2014, with an excellent international credit rating from Standard and Poors.”
The full report can be read by visiting the States of Jersey website.
- See more at: http://www.blglobal.co.uk/BusinessNews.aspx?id=states-of-jersey-financial-report-and-accounts-2014-released#sthash.ii57p7LK.dpuf
Written by Peter Harrison
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June 11, 2015