Global volatility could impact Jersey
Scrutiny
11 April 2025
Scrutiny hears global volatility from US trade tariffs could impact Jersey at a time when savings are depletedJersey's savings in the Stabilisation Fund are virtually exhausted and the volatility in global markets means the Government may retain any spare funds for contingency this year rather than transfer it to savings. The Minister for Treasury and Resources, Deputy Elaine Millar, has told the Corporate Services Scrutiny Panel at their Quarterly Public Hearing today.
Chair of the Panel, Deputy Helen Miles (pictured) said: 'The Minister and her team were transparent about the challenges being faced by all jurisdictions at present following the high levels of volatility in markets with the trade tariff policy coming from Washington. If this leads to a global recession, then this will impact Jersey. While it is concerning that Jersey's financial buffer, the Stabilisation Fund, is depleted and may not be topped-up this year, global volatility will impact our Island and prudence is needed.
‘What is also concerning is that the Pillar 2 tax revenues which had been earmarked to help finance the hospital, might not now materialise as expected which is increasing pressure on public funds to finance the build. In addition, the Minister for Treasury and Resources confirmed we may not be able to afford to finance regeneration plans, which include Fort Regent, as money will need to be borrowed, in addition to the new hospital costs.'
The Panel also heard:
- Revenue from the Pillar 2 international tax agreement, may only be temporary for 2025, as the US are asking for an overhaul of the system. Plans are on hold with bringing in a new digital system and further recruitment to manage Pillar 2 taxation revenues.
- The Minister confirmed that Government is not looking to increase personal and business taxes to manage the situation.
- From autumn every tax-payer will start receiving communications about the individual taxation changes coming in, including wives in their own right.
- Government is mindful of the potential impact on individuals from a global recession which will affect interest rates and therefore the cost of living.
You can Watch a recording of the Hearing:
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