Jersey’s Government Plan: The billion pound package for 2021 and beyond

Plans by Jersey’s government to spend a billion pounds running the island in 2021 face a series of challenges.

Politicians will today (14 December) begin a debate on the Government Plan, which sets out tax and spending proposals for the next four years, as well as proposals to operate at a deficit instead of balancing the books.

It could take at least three days of debates and votes in the States Assembly before the final package of measures is agreed.

Among them, ministers plan to spend more in 2021 than at any point in the island’s history, primarily driven by the cost of managing the coronavirus pandemic.

The bill for 2020 is estimated to be £255 million, with a further £87 million in 2021 specifically linked to the Covid-19 response.

It is proposed the government borrows £385 million as a result.

That would also help pay for a £50million Fiscal Stimulus Fund to help kickstart the economy, if approved.

£20 million of so-called “efficiencies” are planned to reduce the size of the public sector.

There are also plans to spend millions on improving school buildings, on redeveloping Fort Regent, and on finding a new headquarters for government, among many other major projects.

Some of the budget headlines include:

Jersey's Treasury Minister says by running deficits to support government spending, the island could return to a balanced budget by 2024.

Proposed amendments to the Government Plan include:

• Increasing tax relief on childcare

• Reduce the cost of renewable diesel

• Increase stamp duty on mansions

• More money to support care leavers

• More money to support disadvantaged children at school

• £2.6 million extra to repair Elizabeth Castle

• £573,000 to fund school meals in all primary schools

• £300,000 to fund Beresford Street Kitchen

• £1,000,000 to help fund a new Sea Cadets headquarters