MINISTERS in Jersey have proposed an adjustment to Budget proposals to reduce duty for craft spirits producers in a move which would align the Island with Guernsey.
In a small gesture towards inter-island collaboration following recent disharmony over ferry services, Jersey’s Council of Ministers have put forward an amendment to their plans to bring it in line with Guernsey, which passed its 2025 budget earlier this month.
Jersey’s Budget for 2025-28, which is due to be debated in the States Assembly later this month, proposes new policies on duty aimed to boost the Island’s emerging spirits industry, a move which has been welcomed by one pan-island distilling business.
Having initially set out a tiered relief system consisting of a 50% rate of duty for distillers producing grain-to-glass spirits from raw agricultural products and a 75% rate of duty for manufacturers redistilling purchased base spirits, ministers have decided they wish to unify the rate.
The report accompanying the proposition states: “After additional consideration of industry dynamics and Jersey’s competitive positioning in the Channel Islands, this amendment proposes a unified 50% relief rate for all eligible small distillers, both those distilling from raw agricultural products and those distilling purchased spirits.”
A further change proposed by ministers would see the “ceiling” for the duty relief halved.
“The production ceiling for distillers eligible for the relief will be reduced from 40,000 litres a year to 20,000 litres, aligning with the objective to focus on genuinely small producers and an equal playing field across the Channel Islands,” the report adds.
The objective of the move, the report says, is “to further enhance Jersey’s appeal as a hub for craft distillation, bolster the Island’s hospitality sector and promote alignment in excise policy across the Channel Islands”.
Corresponding adjustments to the finance bill, which underscores the budget, have also been put forward.
Luke Wheadon, co-founder of the Channel Islands Liquor Company, said: “We would greatly welcome this if Jersey’s Budget is passed. Parity between the islands is really important, and this move would bring small distillers in line with independent cider-makers and brewers, as well as allowing us to compete with the imported products made by multi-national companies.”
Mr Wheadon set up his business in Guernsey in 2016 before opening a sibling operation at South Pier in St Helier in 2019. The company’s products include Pink Granite and Wheadon’s gins, Indica rum and a “house-pour” gin and vodka range.
Guernsey’s budget for 2025, passed by the States of Deliberation earlier this month, included similar moves to those tabled in Jersey, including the same figures of 50% for duty and 20,000 litres for the production ceiling.
