Our economic growth has been a nominal 1% since 2019, and our productivity has only improved by 2% in the last 15 years. Productivity is the main determinant of living standards and long-term economic growth. This means that Guernsey living standards have barely changed in 15 years.
Low productivity undermines our competitiveness as a jurisdiction, leading to lower and stagnant economic growth rates. A critical issue highlighted in the IoD’s groundbreaking 2024 research report into the strengths and weaknesses of Guernsey’s social capital was the widespread perception that the island is stagnating, and the IoD’s economic survey of business leaders in November 2024 highlighted that confidence is deteriorating with optimism about the Guernsey economy and their firm’s profit expectations over the next 12 months both falling.
International research and macroeconomics literature has shown that investing in education improves the economic growth prospects of a country. The independent colleges contribute to Guernsey’s community and the economy more widely in several ways; supporting students to reach their full potential, whether that is academic grades, enjoying sport, the arts or even speaking in the House of Commons; as well as employing people and purchasing goods and services from local suppliers.
We need to ensure our homegrown workforce is prepared for the professional services that our island’s economy relies on. Attracting and retaining international businesses in Guernsey, as well as attracting new top talent to the island, is critical for our collective economic and social wellbeing.
Guernsey needs to remain competitive, with education, housing, connectivity and healthcare being four key considerations for highly skilled professionals contemplating a move to Guernsey. Similarly, parents thinking of taking up roles in Guernsey want educational choice at an affordable price and will take the presence or absence of that choice into consideration when they are weighing up the locations to which they are willing to move their families. This means that the colleges act as an economic enabler.
Removing funding risks destabilising a section of the Guernsey educational offering, which is currently stable, highly successful and offers great value to Guernsey. For example the Colleges rated ‘excellent’ by ISI and the Colleges funding of £2.7 million is a very small fraction of the wider education budget.
Many countries subsidise independent education, including Malta, Finland, Sweden, Germany, Belgium, Denmark, Germany, Spain, Ireland, Luxembourg, Austria, Australia, New Zealand, the USA and Jersey. Guernsey would be putting itself at a distinct disadvantage at exactly the moment when ensuring educational stability and outcomes is vital for long term economic growth and success.
The independent colleges represent outstanding value for money, delivering high-quality educational outcomes at a low cost to the States. Sustaining this funding is not just an investment in education - it is an investment in the future prosperity of Guernsey.
It is critical for our Deputies to consider the economic contribution and benefits of independent education. We must acknowledge the risks to economic growth, confidence, competitiveness and therefore our future success from removing some or all of the funding.