Despite dozens of pensioners turning up to lobby minsters before yesterday’s sitting, the States rejected a Budget amendment to reverse the proposed freeze on the tax exemption threshold for over-65s, which will take place next year.
And a further proposed amendment to prevent increases in Vehicle Emissions Duty – a charge on cars based on their carbon dioxide emissions – was also rejected.
Other measures to be introduced next year include:
- Tax relief on mortgages for lower earners being phased out.
- High-earning parents who pay tax at 20 per cent losing child allowance.
- 1p extra on a pint of beer.
- 2p on a 75 cl bottle of table wine.
- 90p on a litre bottle of spirits.
- 35p on a packet of cigarettes.
- 1p on a litre of fuel.
- Lowering the value of company benefits that can be claimed tax-free from £1,000 to £250.
- Raising the threshold at which stamp duty is charged on property purchases from £300,000 to £350,000.
Treasury Minister Alan Maclean, presenting his first budget to the States, said that he wanted to make changes to Jersey’s tax structure that would be ‘fair and sustainable’.
He said: ‘This Budget takes a long-term approach that is necessary to secure strong public finances for future generations.
‘It gives this Assembly the opportunity to create a sustainable financial future and continue the process to a fairer taxation system.’
- Ten Members missed the start of Tuesdays States sitting:
- Senator Lyndon Farnham, St Saviour Constable Sadie Le Sueur-Rennard, Deputy Judy Martin and Deputy Jeremy Maçon were en défaut absent without excuse.
- Senator Zoe Cameron and Deputy Richard Rondel were ill.
- St Ouen Constable Michael Paddock and Deputy Mike Higgins were excused because they had to attend hospital appointments.
- Deputy Jackie Hilton was excused because she was attending a funeral, and Deputy Montfort Tadier was excused due to family matters.
- The Deputy Bailiff, Tim Le Cocq, was presiding.
He added: ‘This is not a Budget that proposes sudden changes but takes a phased approach laying the foundations for Jersey’s long-term needs.’
The States voted in favour of the Budget by 36 votes to six, with one abstention, after a full day of debate.
There was opposition from Islanders to the Budget, however, which was focused in particular on the freeze to the income tax threshold for over-65s.
Deputy Carolyn Labey, who tabled the amendment to reverse the freeze, said that she was ‘really disappointed but not surprised’ that it was rejected.
She said: ‘It is extremely difficult to win any debate against this Council of Ministers.
‘I am truly disappointed for all the pensioners who I was fighting for,’ she said.
‘They tend to be on the lower end of the tax spectrum and feel the pinch living on a low fixed income in our expensive Island.
‘One thing that became apparent during the debate is that our entire tax system is not fit for purpose.
‘It needs a root and branch overhaul.’
She added: ‘We need a review which considers all mechanisms for raising tax to give us a much fairer, simpler system.’
Deputies Geoff Southern, Jackie Hilton, Kevin Lewis, Mike Higgins, Jeremy Maçon and Sam Mézec voted against the Budget. Deputy John Le Fondré abstained.
More than 50 pensioners gathered in the Royal Square in the morning to protest against the Budget as ministers arrived at the States Building.
Steven Salisbury (66), a former cleaner for the Housing Department, said that he felt that pensioners were ‘being bullied’ by the States.
He said: ‘I think they are a load of bullies just picking on the old people.
‘They don’t go after business or the rich people because they think that we won’t fight back.
‘It’s disgusting that you can work your whole life and get nothing at the end of it.’
