FREEZES on duty for alcohol and fuel, increased tax allowances, and extended nursery and childcare provision are all included in the 2025 budget unveiled by the government today.
Described by Chief Minister Lyndon Farnham as “a commitment to building a secure future for Jersey”, the document includes a new financing plan for the £710 million hospital project, part of an overall increase of 5.7% in spending.
Deputy Farnham said the budget aligned with his government’s Common Strategic Policy, which was announced earlier this year.
Treasury Minister Elaine Millar said the government wanted to ensure Islanders kept more of their own money before paying tax: there will be a £700 increase in single person’s tax allowance to £20,700, and an extra £1,150 for married couples, whose allowance will be £33,200.
Duty freezes were designed to support the hospitality industry and encourage economic activity within the sector, as well as reducing cost-of-living pressures, Deputy Millar said.
“Structural deficits” in healthcare will be addressed through the provision of an extra £31m in funding, on top of increases to cover inflation and pay rises.
The government has reaffirmed its commitment to transition to a living wage, and will provide £20m in funding to support businesses and charities through the change.
Deputy Millar said: “Maintaining sound public finances is paramount. This budget strikes a balance between necessary investments and fiscal prudence, ensuring we can sustainably support vital services and initiatives that benefit all Islanders.”
The budget is subject to approval by the States Assembly when it is debated later this year.
