Alcohol and fuel duty frozen but tobacco and vehicle emissions taxes to rise from 2023

Ministers in Jersey have published a new three-year Government Plan, which they say "puts the needs of islanders first" and supports hard-working people.

If the budget measures are approved by States Members, the government says an additional £61 million will be invested into key public services.

Islanders will be able to earn more before they are taxed. Individual allowances will rise by £2,000, while the exemption threshold for a couple is rising to £3,200.

Alcohol and fuel duty will be frozen during 2023 to help with the cost of living, but tobacco and vehicle emissions duty will rise.

It will mean a pack of 20 cigarettes will cost 97p more, while the most-polluting road vehicles in Jersey will have to pay 85% more when they are imported.

Vehicle emissions duty for less polluting vehicles is going up by 32%, while zero-emissions electric vehicle owners won't pay any more than they currently do when they are brought into the island.

The Government Plan and Common Strategic Policy will be debated in December, and a period of public feedback and engagement will also take place before plans go ahead.

The proposed plans aim to address the current housing crisis on the island, in addition to skills shortages and the climate emergency.

It is hoped that the £61 million will be invested in areas such as healthcare and mental health services, children and education, skills training and emergency services.

Plans include £20.4 million to be put towards additional health funding, such as investment into off-island medical care, end-of-life care and improving health care across the island.

Further funding will be allocated to emergency services, including victim support and police resourcing.

Treasury and Resources Minister, Deputy Ian Gorst says: “The proposed Government Plan has been created with three key ideals: protecting our future, putting the needs of Islanders first, and supporting a strong economy.

“The government must shape its policies to support a strong economy, ease the pressure on family budgets and ensure our success can be shared across the community.

“With sustainable and affordable finances, we know this government can be ready to respond to any challenges and plan for a prosperous future.”