Jersey To Consider Tax Increase

by Jason Gorringe, Tax-News.com, London

13 May 2010

The Jersey government is to consider what taxes should be increased following a comprehensive spending review, which is looking to cut GBP50m in spending from the jurisdiction's budget.

Jersey's Council of Ministers have discussed proposals to cut spending in 2011, the first stage in a spending review which is looking for savings of 10% of the budget over a 3-year period.

Treasury Minister, Senator Philip Ozouf, said that ministers "have all committed to saving 2% and over the next 2 weeks will be working together to finalize the details before a second workshop planned for later this month."

“The Council of Ministers is determined to take the steps that are necessary to deal with the deficit and successfully manage Jersey’s future. We have to control public spending and provide value for money for the taxpayer before considering what tax increases may be necessary to fund future services,” Ozouf added.

The Treasury Minister explained that once finalized, these savings proposals will form part of the draft business plan which is due to be presented to the States in September.

A consultation on taxes – the Fiscal Strategy Review - will investigate the options for any tax increases that are still deemed necessary to fund essential public services in the future.

Senator Ozouf added that “the Comprehensive Spending Review is on track to help get Jersey’s budget back into balance.”

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