The St Helena Government has welcomed the confirmation of a three‑year financial aid settlement from the UK Government, securing funding until March 2029.
The settlement delivers a 4.8% increase in core financial aid for 2026–27, followed by 2% annual increases in 2027–28 and 2028–29. This represents an additional £1.72 million in 2026–27, bringing St Helena’s core aid to £37.51 million, up from £35.79 million this year. There may also be the opportunity to unlock additional funding, subject to performance.
An additional £40 million over the next three years will be made available through the Economic Development Investment Programme (EDIP) to support essential capital investment including the Bulk Fuel Infrastructure.
For many years, SHG has had to plan budgets on an annual basis, often starting the new financial year with a temporary roll‑over budget while waiting for final confirmation on the settlement from the UK. This limited long‑term planning, delayed investment decisions, made financial management and project delivery much more challenging. A multi‑year settlement will allow SHG to: plan services and programmes with greater confidence; manage projects more efficiently and prioritise investments with the greatest social and economic impact.
SHG is currently finalising the 2026–27 budget and reviewing the EDIP project pipeline to ensure that projects already underway, and those offering the greatest community benefit, are prioritised.
The Chief Minister, Rebecca Cairns-Wicks said:
“In a very difficult financial climate, this settlement, spanning three years, gives St Helena what we have not had for several years, certainty. It gives us the opportunity to plan more effectively, invest smarter and focus on the projects that will make the biggest difference to our community.”
The confirmation of this settlement comes at a time when the UK faces significant fiscal pressures and increasing global instability. The UK Government has reduced its overall aid budget to 0.3% of Gross National Income, down from 0.5%, as it redirects resources towards defence and security commitments in an increasingly contested international environment.
This year’s negotiations also reflect a broader shift in the UK’s approach to development funding, with a stronger emphasis on investment. This was evident during discussions with the Financial Aid Mission (FAM) team in January and will continue during work to finalise a Memorandum of Understanding (MoU) covering the period to March 2029. The MoU will ensure that St Helena’s priorities are clearly understood and embedded within the funding framework.
SHG’s focus now is to ensure that the resources made available are used wisely, supporting essential public services, investing in economic development, and continuing to build a more sustainable and resilient future for St Helena.
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