Jersey Budget: Fuel and alcohol duty frozen, tobacco tax up, more health funding and Government cuts
ITV Channel reporter Emma Volney looks at key spending and tax measures announced by Jersey's government in the Budget
The Government of Jersey has set out its Budget for the next four years which includes some key changes, including a freeze on fuel and alcohol duty, extra funding for health and cost-saving measures across the Civil Service.
The Government forecasts these proposals, which are subject to approval from the States Assembly, will see the island's books balanced with a general revenue income of £1.3 billion and spending of £1.2 billion.
Jersey's Chief Minister, Deputy Lyndon Farnham, says: "The Budget 2025-2028 prioritises our essential services and seeks to deliver practical solutions to the immediate challenges facing islanders."
Consumer
The price to fill up your car and a pint of beer will not see any tax increases as alcohol and fuel duty is frozen for 2025.
The Government says this is to support people through the high cost of living.
It is the fifth year in a row that alcohol duty has been either frozen or held below inflation.
Ministers have also committed to keep giving 9p per litre from fuel duty receipts to the Climate Emergency Fund.
As part of that same drive towards sustainability, there will be a 20% increase in emissions duty for the most polluting vehicles.
Tobacco duty will also rise - meaning an 83p increase on a 20 pack of cigarettes.
Income tax and child allowance
Jersey's personal income tax allowance, the amount you earn before paying tax, is being increased by £700 for individuals and £1,150 for married couples and civil partners.
Child allowance is also going up by £150 with a £250 rise in childcare tax relief - they are also increases for extra support.
Schools
An extra £1.5 million will be used to extend free nursery provision for children aged between two and three with additional needs.
£1.2m will also be given to expand the free meals programme to more schools.
Health
There will be £31 million of extra government money given to the health service above inflation and pay to meet structural funding issues.
The Government will also begin building the new £710 million Acute Hospital at Overdale, with a target completion date of 2028.
Police
The States of Jersey Police will receive a £3 million increase in funding with £2 million of this already allocated towards pay increases for staff.
Business
£20 million will be made available to support businesses moving to pay their workers a living wage over the next two years.
Housing
£2 million will be added to the First Step Housing Scheme to help first-time buyers get on the property ladder.
Construction
There will be changes to the tax refunds on building materials for new homes to close a loophole used to save money on major construction projects.
The Government says recent assessments of the DIY Home Builder Scheme have highlighted the risk that claims go beyond the original objectives of the policy, particularly for high-value buildings.
A cap of £1 million for projects that can claim the GST rebate will be brought in to make sure it remains targeted to individuals personally building an average house.
Government
The Government wants to make savings by removing management layers in the civil service, reducing their office footprint by moving into a new headquarters and cutting down on the use of external consultants.
£91 million will be allocated to buy the new government HQ on Union Street from construction group Dandara.
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