Jersey's government warned: Cut costs or put up taxes to cope with economic uncertainty

Credit: ITV News

Taxes will need to rise or public sector spending be cut if Jersey's government is to balance its books over the next four years.

That's the warning of a leading group of economists who advise Jersey's government on its financial plans.

The Fiscal Policy Panel warns £340 million was taken out of reserves, or rainy day funds, between 2009 and 2017 to balance the books.

It warns more money needs to be set aside from 2020 to 2023, an issue made even more pressing by the uncertainty caused by Brexit.

Among the proposals, a call to increase the percentage people pay towards the Long Term Care Fund. The report reveals the Social Security Minister is considering increasing it to 1.5% in 2020.

The panel believes Jersey's ageing population will cause further strain on the public purse, with proportionally more retirees and fewer workers.

The Treasury Minister, Deputy Susie Pinel, said she welcomed the report from the panel.