States accounts criticised for being too complex

Guernsey's public accounts have been criticised for being too complex for the public to understand.

The Scrutiny Management Committee reviewed the States' 2025 accounts to assess whether they help Deputies and taxpayers understand the government's finances and long-term sustainability.

It found key figures require "extensive explanation" and warned that "headline figures may mislead rather than inform without careful interpretation". The committee also called for a "plain-English summary" to improve transparency.

Scrutiny president Deputy Andy Sloan said: "If informed Deputies require significant narrative interpretation in order to understand the accounts, how realistic is it to expect members of the public to do so?"

The committee's report followed a public hearing into the accounts, which showed a headline group surplus of £106m.

However, members said the figures were difficult to interpret, with multiple measures used to describe the States' financial position, including different types of surplus and an estimated underlying funding gap of £50m.

The committee said a taxpayer would "struggle to determine" various points in the accounts including whether the government is living within its means, where tax revenue was spent and what reserves were actually available.

The report also highlighted confusion over the treatment of investment gains.

It said figures included in the annual surplus were later excluded when assessing the States' long-term position, making it harder to understand the true financial picture.

Sloan warned this risked headline numbers being misunderstood without careful explanation.

The committee acknowledged the accounts were technically sound but said clarity and accessibility remain a concern.

It concluded that producing more information was not the answer, but accounts needed to be presented more clearly so the public can better understand the States' finances.

Sloan said: "The Committee recommends that a concise, plain-English, accompanying public-facing financial summary be developed and published alongside future Accounts."

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