This report provides estimates of the level of government receipts and expenditure to and from individual Jersey households. These estimates are based on very broad household information consisting of the household type (number of adults and children) and the level of household income. We are specifically considering households that contain at least one working adult.

These estimates represent anticipated average levels of government receipts and expenditure from model households and will not reflect a household’s specific circumstances.

For the purposes of receipts, we are considering:

• Personal income tax
• Goods and Services Tax (GST)
• Impôts (excise duty)

• Company income tax
• GST payable by companies which includes International Service Entities (ISE)
• Stamp duty
• Island-wide rates
• “Other income”

Stamp duty and Island-wide rates collectively total approximately £50 million of tax revenue received per year and the majority of this revenue is likely to be derived from Jersey households. At this stage, due to the nature of how these receipts occur (particularly in respect of stamp duty) we have not attempted to provide estimates for these items, however they could be the subject of subsequent work. These receipts equate on average to approximately £1,100 per Jersey household per year.

In respect of government expenditure, specific consideration is given to that which provides the main areas of tax-funded services directly to an individual or household. These are:

• Health
• Education
• Income support

An allowance for “other” States expenditure is also included, to reflect, on some level, services not included above but which could still be considered as being directly funded from individual households.

In addition to the above items, which focus on general States of Jersey revenue and expenditure, consideration is also given to the receipts received in respect of the main ring-fenced funds, namely:

• Social security
• Health insurance
• Long-term care

These items represent a significant level of receipts from Jersey households and estimates for receipts into these funds have been included to assist in the presentation of the overall context and also to facilitate additional future work. We have not considered estimated expenditure from these funds at this time, but again this could be the subject of future work.

The current commitment of the States to make an annual contribution into the Social Security Fund (often referred to as “supplementation”) is also considered. While this does not represent either government receipts or expenditure to / from a household, it does have an important impact as to the balance of funds that are ultimately available either as general tax revenue, or within a ring-fenced fund.

The combination of receipts and expenditure allows for the estimate of a net tax balance at an individual household level which is the primary measure presented in the outputs, both before and after the impact of supplementation. This measure should however be viewed as a starting point for further analysis and policy discussion as it is intended that the findings of this report and associated modelling serve as a useful tool for future exploratory work, rather than being viewed as a final outcome.

Estimating government receipts and expenditure for Jersey households