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Mini-Budget 2022 (P.80/2022): eighth amendment [P.80-2022 Amd.(8)]

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STATES OF JERSEY

MINI-BUDGET 2022 (P.80/2022): EIGHTH AMENDMENT

Lodged au Greffe on 30th August 2022

by Deputy M.B. Andrews of St Helier North Earliest date for debate: 13th September 2022

STATES GREFFE

2022  P.80 Amd.(8)

MINI-BUDGET 2022 (P.80/2022) – EIGHTH AMENDMENT ____________

1  PAGE 2, PARAGRAPH (c) –

For  the  word  "doubling"  substitute  the  word  "raising"  and  for  the  figure "£516.50" substitute the figure "£289.24".

 DEPUTY M.B. ANDREWS OF ST. HELIER NORTH

Note:  After this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

to agree that the following actions should be taken to address cost of living concerns –

  1. increasing the personal income tax thresholds and allowances by 12% above the 2022 thresholds and allowances, in accordance with the Table in Appendix 2 of the report accompanying the proposition, to take effect for the year of assessment 2023;
  2. temporarily  reducing  by  2  percentage  points  Class  1  and  2  social security contributions for the period 1st October 2022 to 31st December 2022, comprising a reduction, in respect of earnings below the standard earnings  limit  (SEL),  from  6%  to  4%  for  the  Class  1  employee contribution rate, and from 12.5% to 10.5% for the Class 2 contribution rate;
  3. raising the value of the Community Costs Bonus for 2022 by increasing the value of the bonus from £258.25 to £289.24.
  4. setting a fixed value at £70 per month for the Cold Weather Bonus and Cold  Weather  Payments,  regardless  of  temperature,  for  the  winter months (October 2022 to March 2023 inclusive); and
  5. postponing the commencement of the obligation for offshore retailers to register under the Goods and Services Tax (Jersey) Law 2007 from 1st January 2023 to 1st July 2023.

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P.80/2022 Amd.(8)

REPORT

In the Mini Budget proposals, the Community Cost Bonus (CCB) will be doubled from £258.25  to  £516.50,  if  approved,  which  demonstrates  a  100  percent  increase. Alternatively, I propose the CCB be increased by 12 percent from £258.25 to £289.24.

This amendment will see an aggregate budget allocation of £2,024,680 instead of £3.6 million to support 7,000 households. Measuring the CCB increase with Retail Price s Index (RPI) is sufficient enough without the need to double the CCB, because an CCB increase at 12 percent will provide sufficient coverage for Islanders in real terms.

Financial and manpower implications

This amendment will see an aggregate budget allocation of £2,024,680 instead of £3.6 million outlined in P.80/2022, there will be no expected manpower implications for the Social Security Department or Treasury and Resources in addition to those highlighted in P.80/2022.

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P.80/2022 Amd.(8)