The UK Government has confirmed a boost in funding for the St Helena Government's budget for the 2025/26 financial year. Following discussions during the Financial Aid Mission in January 2025, the UK Government has allocated £35.79 million, marking an increase of just over 5% from the previous financial year.
In a statement, Deputy Director of Overseas Territories and Polar Regions Directorate, Adam Pile remarked, “Given the UK’s need to increase funding for defence and security priorities and the challenging fiscal position the UK Government finds itself in, I hope you will agree that this is an incredibly positive outcome, and one which confirms the UK Government’s continued commitment to meeting St Helena’s reasonable assistance needs.”
This funding comes amid challenging fiscal conditions for the UK Government and is seen as a strong result for St Helena. In addition to the allocated budget, the UK Government is providing £6.65 million as part of the BIOT migrant agreement, enabling the pursuit of priority objectives such as an education review.
Chief Minister Julie Thomas expressed gratitude for the increased settlement, stating, “We are grateful to the UK Government for delivering an increase of 5% on our annual financial settlement, particularly set against the challenging global and UK context. Special thanks are extended to Minister Doughty for his ongoing support to the British Overseas Territories, especially noting St Helena being an aid dependent territory. To receive such an outcome during unprecedented times is a clear demonstration of the strength of partnership between SHG and the FCDO. It also cements the need for us to continue to strive to work closely together to achieve the best outcome for St Helena.”
Both officials highlighted the necessity of taking tough decisions due to financial constraints. Chief Minister Thomas noted, “Despite this positive outcome, as a government we will still need to continue to take hard and difficult decisions, which I appreciate will not be well-received. However due to our financial position we will simply not be able to address all of my government’s policy priorities and will have to focus on fulfilling our essential needs.”
The announcement does not cover other funding streams such as the Economic Development Investment Programme (EDIP), the Cloud Forest and other infrastructure and environmental programs, which remain crucial for St Helena's development projects.
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