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States Assembly agrees £56m 'mini-budget' for Jersey

BBC States AssemblyBBC
The States voted unanimously to approve the latest plan on Wednesday

Islanders will receive £56m worth of financial help over the next two years after the States approved its mini-budget.

The budget will aim to help islanders with the rising costs of living through tax cuts and various financial benefits.

States members voted unanimously to approve the budget on Wednesday.

Deputy Kristina Moore said the debate had given her ideas for more ways to keep money in the pockets of islanders.

She said: "There have been some really interesting debates and I'm grateful to everyone who brought amendments because they have clearly been well thought through.

"This mini-budget does some short-term things but it also increases tax allowances and that will be forever and as we progress through the life of the assembly then we'll be able to consider what we can do for the medium to longer term."

The budget includes:

  • A temporary reduction of 2% in social security contributions
  • An inflation increase of 12% in tax thresholds and allowances from 1 January 2023
  • Doubling the cost of living temporary scheme from £20 to £40
  • Doubling community cost bonus from £258.25 to £516.50 and extending eligibility
  • An increase in income support and a temporary increase in cold weather payments
  • An increase in old age pension rate of 7.7% from October 2022

The Minister for Treasury and Resources Deputy Ian Gorst said he was "pleased with the work we have done to help people with these broad measures at this time of need in the community".

'Not perfect'

The leader of Reform Jersey backed the mini-budget, although some of his amendments were voted down.

Deputy Sam Mezec said States members were "out of touch" after they refused to rule out increasing rents in the next two years.

"The measures that are proposed in this mini-budget are helpful for people who are struggling with the cost of living. They will make some people better off," he said.

"They are not perfect but realistically we can't vote against helping people at this difficult time and it's the right thing to do to support it."

Mr Mezec added his party would not stop proposing new amendments to help those renting in the island.

"I think the Assembly has been quite out of touch with the public in opposing things like a rent freeze but believe me they'll have more opportunities to correct that in future because Reform Jersey will keep bringing proposals forward to help people in Jersey."

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