Jersey business leaders urge government to cut spending to avoid higher taxes

The proposed slash is a part of the government plan.
Government spending is expected to rise by 15% to £1.2 billion in 2024. Credit: ITV Channel

Jersey's government must curb spiralling public spending and focus on efficiency savings or taxes will rise, according to the island's leading business group.

The 2024 Government Plan, announced earlier this week, forecasts a 15% increase in expenditure from just over £1 billion in 2023 to £1.2 billion in 2024.

The Chamber of Commerce is calling for clarity on the factors behind this jump and wants a change in approach.

"This is yet another year-on-year increase in public expenditure which can only be matched by an increase in taxation," the group explained.

"Chamber would urge the Government to put a limit on expenditure and greater emphasis on efficiencies."

The Chamber are also concerned about how £450,000 ringfenced for tax incentives will be used, and the lack of positive measures to keep young professionals on-island after they finish education.

Jersey risks skills shortage if young people keep leaving the island

Other highlighted issues include:

  • No breakdown of the headcount in different government departments, outside of frontline services, to understand how this has grown and what plan there is to reduce staffing costs.

  • A lack of clarity around the Cabinet Office's budget which stands at £79 million in 2024, and why this is higher than all departments other than Social Security and Health.

  • Whether £10 million is enough to help first-time buyers onto the property ladder and if other funds are committed to improving necessary infrastructure.

  • Concerns around the success of schemes such as the 'Caring Cooks hot meals in schools' initiative with a need for closer cooperation.

Jersey's Chamber of Commerce say they remain committed to working collaboratively with the Government on these issues.

ITV News has contacted the Government for a response to the concerns raised.

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