Deputy Kristina Moore
Chief Minister critical of ‘profligate’ policies
Deputy Kristina Moore opens the Government Plan debate
THE Chief Minister yesterday kicked off a key debate on her government’s plans for the next four years with a warning about “profligate” policies put forward by backbenchers which she said risked the Island’s financial stability.
As States Members started debate on the Government Plan for 2024-27, which is expected to last all week, Chief Minister Kristina Moore said her intention was to maintain a tax system which was low, broad, simple and fair.
“We can’t undermine these principles and we don’t want to raise taxes,” she said.
Deputy Moore described Jersey as “a stable, well-run and historically prudent jurisdiction” and said she was concerned about some of the amendments put forward by backbenchers, saying that the spending advocated in several cases was “profligate”.
Although government funds, including the Strategic Reserve and Social SecurityFund, were described as being in a good position, Deputy Moore said there would be borrowing to finance the proposed new healthcare facilities, done in a phased approach.
The Government Plan would build on the mini-budget brought in by the government soon after being elected, Deputy Moore added, raising tax thresholds and child allowances.
Ministers were open to feedback from backbenchers and Scrutiny panels, the Chief Minister said, and as a result had accepted some amendments.
This included a freeze on fuel for the second successive year, as proposed by the Economic and International Affairs Scrutiny Panel, and adjusting the proposed increase in alcohol duty downwards in order to balance helping the hospitality industry with acknowledging the health impacts of high levels of alcohol consumption. Alcohol duty would rise by 4.5%, she said, just under half the current rate of inflation.Health, education and housing were key areas of priority which were at the forefront of the policies put forward by the plan, she said.
At the start of the debate, Members began to focus on more than 30 amendments.
Deputy Carina Alves proposed to restrict the “rent-aroom” income tax relief to only households servicing a mortgage on their main residence.
This was a targetedmeasure, she said, but Housing Minister David Warr said it represented “appalling discrimination” against those who had paid off their mortgages.
The proposal was lost by ten votes to 36, with Deputy Alves winning support from her nine Reform Jersey colleagues.
Deputy Max Andrews proposed an amendment to increase Corporate Income Tax estimates for 2024 by £200,000 and delete proposals for a socalled “super deduction” for investment that would allow regulated financial services businesses to receive tax credits exceeding the value of investment by 150%.
Deputy Andrews’ amendment was defeated by 11 votes to 35.
Deputy Sam Mézec’s move to remove interest tax relief on mortgages for letting properties from 2026 onwards was amended by the Council of Ministers, which wanted the matter referred to the Fiscal Policy Panel – an independent group of economists that advises the government. Deputy Mézec said the ministers’ move robbed his amendments of any real impact, although it was subsequently approved by 33 votes to 12.
As States Members started debate on the Government Plan for 2024-27, which is expected to last all week, Chief Minister Kristina Moore said her intention was to maintain a tax system which was low, broad, simple and fair.
“We can’t undermine these principles and we don’t want to raise taxes,” she said.
Deputy Moore described Jersey as “a stable, well-run and historically prudent jurisdiction” and said she was concerned about some of the amendments put forward by backbenchers, saying that the spending advocated in several cases was “profligate”.
Although government funds, including the Strategic Reserve and Social SecurityFund, were described as being in a good position, Deputy Moore said there would be borrowing to finance the proposed new healthcare facilities, done in a phased approach.
The Government Plan would build on the mini-budget brought in by the government soon after being elected, Deputy Moore added, raising tax thresholds and child allowances.
Ministers were open to feedback from backbenchers and Scrutiny panels, the Chief Minister said, and as a result had accepted some amendments.
This included a freeze on fuel for the second successive year, as proposed by the Economic and International Affairs Scrutiny Panel, and adjusting the proposed increase in alcohol duty downwards in order to balance helping the hospitality industry with acknowledging the health impacts of high levels of alcohol consumption. Alcohol duty would rise by 4.5%, she said, just under half the current rate of inflation.Health, education and housing were key areas of priority which were at the forefront of the policies put forward by the plan, she said.
At the start of the debate, Members began to focus on more than 30 amendments.
Deputy Carina Alves proposed to restrict the “rent-aroom” income tax relief to only households servicing a mortgage on their main residence.
This was a targetedmeasure, she said, but Housing Minister David Warr said it represented “appalling discrimination” against those who had paid off their mortgages.
The proposal was lost by ten votes to 36, with Deputy Alves winning support from her nine Reform Jersey colleagues.
Deputy Max Andrews proposed an amendment to increase Corporate Income Tax estimates for 2024 by £200,000 and delete proposals for a socalled “super deduction” for investment that would allow regulated financial services businesses to receive tax credits exceeding the value of investment by 150%.
Deputy Andrews’ amendment was defeated by 11 votes to 35.
Deputy Sam Mézec’s move to remove interest tax relief on mortgages for letting properties from 2026 onwards was amended by the Council of Ministers, which wanted the matter referred to the Fiscal Policy Panel – an independent group of economists that advises the government. Deputy Mézec said the ministers’ move robbed his amendments of any real impact, although it was subsequently approved by 33 votes to 12.