STALLED plans to explore some form of windfall charge to reclaim a portion of the vast profits generated from the sale of land rezoned for development could be revived under the new government.
Treasury Minister Alan Maclean told the JEP that the matter was one he would be “looking into” and speaking to his ministerial colleagues about “to decide the best way forward”.
In 2023, States Members agreed to investigate the introduction of a land development tax “or an equivalent charging mechanism” to raise revenue from any significant uplift in the value of land, from when it is rezoned or planning permission has been granted.
That decision came on the back of a proposition from then-Reform Jersey Deputy Raluca Kovacs, who lost her seat in last month’s election.
An an example, her proposal cited the sale of a field in St John for approximately 50 times its original value after being designated an affordable-homes site in the Bridging Island Plan.
She argued that: “The objective of this proposal is not to raise token amounts of money to fund bus shelters or plant a few trees.
“The objective of this proposal is to allow the States of Jersey to share in the uplift of land value created by rezoning for residential use.”
Ministers were asked to come forward with plans for new legislation by 31 March 2025, but progress stalled amid a lack of funding to develop it.
Asked whether the plans might come to fruition under the new government, Senator Maclean said: “This is one of a number of matters I will be looking into and discussing with my fellow ministers to decide the best way forward.”
Reform Jersey Deputy Tom Coles questioned whether there had previously been a lack of political “appetite” to give effect to the Assembly’s decision.
He noted that the new government would be producing a Common Strategic Policy and a Budget, which would present an opportunity to “start questioning ministers a little bit more” if the plans did not make an appearance.
Deputy Coles contended that there was “absolutely” still a need for such a charge, adding that: “Land is a finite resource in Jersey – we only have so many places that we are ever going to be able to do anything on.
“The more we start eating into that, the more it will start driving up the prices.”
