The government announced the largest package of spending the Island has ever seen as it aims to help businesses recover from the economic crisis caused by the Covid-19 outbreak.
Among the measures was each and every Islander receiving a £100 voucher that can be spent at any local business, while social security contributions will also be cut by 2% up to the monthly standard earnings limit of £4,558 between October 2020 and June 2021.
In the UK measures were introduced to more specifically help the ailing hospitality sector, including the handing out 50% discount restaurant vouchers for mid-week meals.
Explaining Jersey’s different approach, Chief Minister John Le Fondré said that his government had aimed to use simple measures that can be rolled out quickly and that further waves of the £100 vouchers could be distributed and tailored to be more sector-specific.
Dominic Jones, chief executive of JPRestaurants which runs the Jersey Potteries, said that he welcomed the move to revive the economy but was ‘disappointed’ that support has not yet been targeted at struggling sectors.
‘We were pleased to see further government support aimed at reviving the economy following the co-funded payroll support announced in April,’ he said.
‘We were, however, disappointed that it wasn’t specifically targeted at those sectors such as hospitality and retail that have seen the biggest impact from Covid-19.
‘With respect to hospitality, we would be supportive of a temporary cut in GST and a voucher scheme similar to that implemented in the UK, which would encourage Islanders to dine out in the early part of the week when trading is quieter and many Jersey pubs and restaurants struggle to trade profitably.’
As part of the kickstart package the government also announced £50 million has been set aside for ‘fiscal stimulus’ – direct investment into businesses to boost the economy.
Mr Jones said that he would like to see some of this pumped into hospitality.
‘We believe further support will be needed soon to address the challenges faced by many in hospitality looking at a tough winter ahead,’ he said.
‘We anticipate seeing more business failures locally if the crisis continues and customer confidence does not return.
‘Medium-term we would encourage the government to target some of the fiscal stimulus fund investment at training and digitalisation of the sector.
‘This will help drive much needed productivity, provide better employment prospects and ensure hospitality plays its part in Jersey’s economic recovery.’
Simon Soar, chief executive of the Jersey Hospitality Association, also suggested that further support for his sector was needed.
‘We are certainly happy that government is looking strongly at what needs to be done to kickstart the economy,’ he said.
‘The £100 is a great gesture but we feel may not be targeted enough. Now we need to see what other support comes up.’
