Jersey Releases 2010 Business Plan

by Amanda Banks, Tax-News.com, London

23 July 2009

The draft Annual Business Plan follows the recently approved States Strategic Plan which sets out the States’ priorities for the next five years. The Plan also includes the broad resources framework, including the key resource principles and the long-term resource initiatives. The draft Annual Business Plan provides the detail behind that framework and proposes the allocations to both individual departments and capital projects.

The Chief Minister, Senator Terry Le Sueur, said: “The Strategic Plan set out our long term vision for Jersey’s future, now we want to put some firm plans behind that vision. We want to work together to create a society in which all islanders can reach their full potential. That’s why it was important to find savings from within the organisation, savings that have been difficult to identify, so we can invest in children’s services, in front line health services, in reducing crime, in supporting the vulnerable and in tackling the harm caused by the misuse of drugs."

“We want to promote lifelong health and well-being for all islanders and help people to help themselves. That is our focus and that is where we are spending the bulk of the money we have saved.”

The Treasury Minister, Senator Philip Ozouf, said: “Setting this Business Plan has been a very difficult process. We made it clear in our Strategic Plan that any spending pressures, growth or investment must be offset by equivalent savings, service reductions or extra income. Despite this, we have managed to stick to spending limits by finding new efficiencies, controlling the public sector pay bill and some reductions in services. The Council of Ministers needs to maintain this discipline in future years.”

Ozouf added: “GBP44m is being invested in projects aimed at helping businesses and individuals through this difficult time. This still leaves over GBP110m which will be needed to maintain public spending and services over the next two years, in the face of falling tax receipts.”

The Treasury Minister concluded: “If spending cannot be contained or reduced, there would be no alternative but to consider increased taxes and charges in order to return to balanced budgets. But we have successfully managed similar challenges. Indeed our current financial position owes much to the strength of our fiscal strategy, and we can now address the next challenge with similar foresight.”

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