1. ITV Report

Jersey's government aiming to make £100m in savings over next four years

There will be £40 million worth of savings in 2020 with the details set to be released in October. Credit: ITV Channel TV

Jersey's government is aiming to save £100 million over the next four years.

The efficiencies are part of the new Government Plan, which sets out how the States will raise and spend money.

Ministers say the savings will come from reducing duplication, not replacing some retiring public sector staff, and moving to digital filing systems.

Details of the first tranche of savings, totaling £40m for 2020, will be released in October.

The Government Plan replaces the Medium Term Financial Plan, and will be updated annually, rather than producing a new budget for each year.

The plan details £91m of capital investment next year, with money for health, schools, cyber security and improving the sewage works.

Over the four year plan, £349 million will be spent on capital projects and £5m has been set aside for a Climate Emergency Fund.

Under plans for 2020:

  • Long Term Care contributions will double to 2%.
  • Social Security payments will rise from 2 to 2.5%.
  • Income tax thresholds rise to £15,900 for a single person, and £25,550 for a married couple.
  • Duty on tobacco, alcohol and fuel will rise above inflation to encourage people to drink and smoke less, and choose more environmentally friendly travel.
  • The GST 'de minimis' level will fall from £240 to £135.

Commenting on the plan, the Chief Minister has said the government needs to balance the books.

The Government is committed to balancing the budget, and to keeping taxes low and broad. We are ensuring that what we do can be paid for, without placing undue burdens on islanders. We are taking the important decisions now to tackle the future needs of our island, creating a positive long-term legacy for islanders.

– Jersey's Chief Minister, Senator John Le Fondré

The Government Plan will be debated by the States in October. You can read the full Plan by clicking here.

ITV Channel's Political Correspondent, Clare Burton been looking at what cuts and efficiency measures the government is putting in place to balance the books.

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