2013 Budget approved by States Assembly

06 December 2012

The 2013 Budget, which has been approved by the States Assembly, introduces a number of measures designed to provide stability, certainty and to support the economy.

This is the first time a Budget has been approved as part of the new Medium Term Financial Planning process, and coordinated as part of a wider, longer-term strategy for tax and spending.

The 2013 Budget contains no tax increases, an increase in personal income tax exemptions and increased tax relief for first-time homebuyers through the extension of the stamp duty limit to £450,000.

The Budget sets out an extensive capital growth programme to stimulate the economy, with a significant focus on the development of infrastructure.

Amendments

Three amendments were approved as part of the Budget debate:

• an adjustment to the ‘distribution rules’ designed to make tax administration simpler for businesses
• a freeze on the proposed duty increase on fuel
• an increase in the duty on tobacco, to partially counteract the freeze on fuel duty

Implementation

The Minister for Treasury & Resources, Senator Philip Ozouf, said “This Budget maintains existing tax levels and provides extra support to Islanders through increased personal exemptions. Now that the States have approved the Medium Term Financial Plan and the Budget, the hard work begins on implementing the policies and allocations set by Members.

“While I am confident about Jersey’s economic position, we must not let up on our drive to modernise and deliver efficiencies. This will continue to be my top priority in 2013, together with continuing to stimulate the economy, safeguarding jobs through investment in infrastructure, and supporting the radical new policies in Health and Housing.

"This is a Budget that supports the long-term aims outlined in the Medium Term Financial Plan, in line with the recommendations of the Fiscal Policy Panel. We are in an almost unique position to be able to achieve this level of economic stimulus without incurring debt and while maintaining our key reserves.

“This Budget provides a vital next step towards Jersey’s future economic prosperity, by providing stability, certainty and growth.”