Delivery Framework for Sustainable Economic Development 2023-26.

OCT 2023

Future Economy Programme

R.159/2023 1

Contents

Ministerial Foreword  3 Executive Summary  4 What does Success look like?  6 Develop Growth Enablers  8 Increase Existing Sector Productivity  11 Support from an Effective Public Service  16 Delivering the Framework  23 References  24

Ministerial Foreword

The Future Economy Programme's Strategy for Sustainable Economic Development set out the direction of travel for the development of Jersey's economy now and up to 2040. This document, the Delivery Framework, describes the first key actions that the Government is taking to deliver the Strategy.

The Delivery Framework turns the conceptual into the real and is designed to give Islanders and Island businesses and organisations the roadmap for our first steps to delivering the economic growth that Jersey needs over the next 15 years.

It is an exciting document that talks for the need to develop research and development capabilities, the need to increase our exports and the creation of new sectors, including offshore wind power and a Medtech sector, among many other pieces of work.

I'm proud that as a Government, we understand the importance not only of charting a direction for the economy but showing Islanders how we can get to our destination with concrete actions.

Combined with the Strategy, this Delivery Framework tells Islanders, businesses, and internal and external investors that Jersey is very much open for business and is embarking on a focused journey to ensure we deliver the sustainable economic growth that we need to improve Islanders' standard of living, whilst dealing with the significant economic challenges that lay ahead.

Deputy Kirsten Morel

Minister for Sustainable Economic Development

Executive Summary

The Future Economy Programme is more than a set of documents, it is about shifting our culture, and is the start of taking action to secure our future prosperity.

The Strategy for Sustainable Economic Development set out the challenge we face and the vision for the Island to 2040. This framework sets out this Government's first steps towards achieving the Future Economy Programme's (FEP) vision and the five guiding themes.

We need sustainable economic growth – to support family life and allow everyone to have a better standard of living.

Sustainable economic growth is the aim and choice of this Government. The alternative of stagnating or unsustainable growth is detrimental to our living standards in Jersey. This Delivery Framework sets out this Government's priorities based on our understanding of the economy today and where we need to be by 2040. Future governments will have new information  and  circumstances  within  which  to  make  decisions,  and  so  this  Delivery Framework model is designed to be flexible and updated in the future.

It is an exciting time for us to work differently – with greater collaborations and partnerships to achieve our future.

We all have a role in creating growth. Our role as Government is to deliver sustainable economic development, that enables and supports growth across the economy. The biggest economic and social challenges facing Jersey today cannot be solved by one government department or even by a government working in isolation. To deliver our vision for the economy,  we  need  to  work  differently.  We  must  pool  resources  and  expertise  across Government, private companies and non-profit organisations. We all must collectively work together to achieve the goals set out in this vision for 2040.

As the first Delivery Framework, the focus is on creating the right conditions to support all of us to create sustainable economic growth.

In development of this framework, we hosted multiple workshops across Government and with external stakeholders to support a shared understanding of the economy and gather ideas for growth. Our processes draw upon evidence, data and research, and build from previous work, including the Outline Economic Strategy and the Economic Council's New Perspectives report.[1]

We are asking everyone to reignite Jersey's entrepreneurial spirit.

This means collectively identifying, creating, and pursuing opportunities to grow the economy from a desire to learn and innovate. It means taking risks and trying new things to achieve sustainable economic growth.

We  have  strong  foundations  to  continuously  improve  on  and  to  build  new opportunities.

Economies evolve gradually, and by 2040 we can expect our economy to be quite similar to today, including a strong and growing Financial Services sector. The opportunities for growth lie in the discovery of new sectors to complement our existing economy, while optimising the strengths of our existing sectors. This will be achieved through three initiatives:

1. Develop Growth Enablers
2. Increase Existing Sector Productivity
3. Support from an Effective Public Sector

Each sub-section has a list of actions that have been indicated as short, medium or long:

SHORT – Delivered by the end of 2024

Activity that is underway or planned and will be delivered by the end of 2024. MEDIUM – Delivered by the end of 2026

Activity that will be delivered by the end of 2026 and may be about testing feasibility. LONG – Delivered beyond 2026

Activity that will be delivered beyond 2026 and may be more aspirational.

What does Success look like?

Looking to 2040, success will be seen in the achievement of the FEP's aims: that living standards for Islanders are better than today's levels; that our economic growth is sustainable, driven by increases in productivity; and that our economy is defined by our five themes. This means more than just measuring Gross Domestic Product.

The desired outcomes are set out below, which will be updated as the FEP develops.

advanced small island  population is adequately cared for.

economy by 2040.  Decoupled from carbon: Our growth does not compromise our

carbon neutral commitments.

• Decoupled from population growth: Our growth does not rely on unsustainable levels of inward migration.

Resilient: An economy resilient to economic shocks and global trends, and agile to change.

• A strong public sector: The public sector is efficient, agile and an enabler for businesses and growth. Public finances are strong and can respond to economic disruptions.

• An  economy  with  productivity-driven  growth:  Jersey's economy grows and thrives through productivity increases.

• Diversification  within  existing  sectors:  Ensuring  existing sectors continue to be resilient to external shocks and changing global trends, particularly Financial Services.

Innovative: An  An economy with new and emerging high-value sectors: economy with a  Jersey's economy responds to global trends and new high-value culture of  industries emerge.

entrepreneurialism  A reignited entrepreneurial spirit:  An island that promotes and innovation.  entrepreneurialism and is not afraid to innovate.  

• A public sector that leads by example: A public sector at the forefront of improving efficiency and productivity, that enables business and growth opportunities.

International: Protect our global reputation and diversifies our export opportunities.  

• A thriving trading nation:  An economy with exciting export value, variety, and opportunities.  

• Attract  the  right  inward  investment  and  high-skill immigration: International businesses and skilled workers see Jersey as the right place to relocate to.

• Maintain  Jersey's  strong  international  reputation:  Jersey maintains  its  international  reputation  by  upholding  our environmental, regulatory, and legislative responsibilities.

Measuring our success will be aligned with the Jersey Performance Framework, utilising the

data and metrics that are already identified.[1] The FEP will set out the key performance indicators to measure the above outcomes in 2024 as part of the on-gong development of the programme.

1. Develop Growth Enablers

Growth enablers are activities that help increase productivity across multiple sectors. We  need  new  growth  enablers  to  help  reignite  Jersey's  entrepreneurial  spirit. Government  needs  to  set  out  the  framework  for  different  growth  enablers  to  be developed.

The four options below are all at an early stage but will be developed further with public and expert input to achieve their full potential. Importantly, some of these ideas may not work, but we need to create the space for these ideas to be tested and learnt from.

Through our engagement process we collected over 400 ideas from internal and external stakeholders on ways to grow the economy. These went through four stages of development as shown in the figure below:

This systematic process provided options for growth, some of which are for the Government of Jersey to lead on, and others to enable and support private and third sector delivery. This is also not a one-off process. The first action under enabling our entrepreneurial spirit' is to create a live platform to allow new ideas to flow into Government and be considered through a similar process.

1. Enabling Our Entrepreneurial Spirit

The  economic  potential  of  Jersey  becoming  recognised  as  a  place  for  innovation  is considerable. The establishment of high-potential firms in Jersey can lead to significant growth. There is an opportunity for strategic first-mover' advantage in emerging industries, productivity  spillovers  to  existing  industries,  and  enhancing  Jersey's  reputation  as  a destination for inward investment.

The role of Government is to create the legislative framework that allows local talent to thrive and attracts innovators to the Island. Government already recognises this importance, with a tax system that enables business ventures. Creating defined and supported pathways to encourage  more  individuals  and  employers  to  become  innovators  will  foster  the entrepreneurial  spirit  needed  to  increase  productivity. Other  associated  benefits  include Jersey enhancing its offer towards being an exciting place to live, work, startup and grow businesses  and social enterprises.  For  example,  this  could  build  on existing  economic strengths with  FinTech and  RegTech as well as developing new opportunities such as automation, data, and medicinal technologies.

SHORT - Delivered by the end of 2024

• Create a platform for future economic ideas to be fed into Government and develop our on-going engagement process with key stakeholder groups

• Begin to address barriers to start-up businesses as identified in the forthcoming Barriers to Business report

• Review the provision of the Young Enterprise Programme

• Update the process for assessing entrepreneurs moving to Jersey

MEDIUM - Delivered by the end of 2026

• Promote the entrepreneurship opportunities from Impact Jersey

LONG - Delivered beyond 2026

• Create an ecosystem of entrepreneurship that combines individual creativity, industry opportunity and Government agility to explore and test economic opportunities

2. Renewable Energy

Beyond environmental sustainability and security, generating energy has the potential for creating export revenue. Renewable energy is an important part of achieving Jersey's Net Zero commitment, but it also presents an opportunity for economic growth. Of the potential renewable energy sources, wind is the most commercially viable for Jersey in the short to medium term. Government is promoting the development of up to 1GW of installed capacity in the southwest of Jersey's waters. Alongside specialist job opportunities, this would create opportunities for exporting energy or new, energy intensive industries such as vertical growing and specialist data hubs.

Other renewable energy sources such as tidal could also play a significant economic role in the future and should be re-evaluated periodically to assess their technology maturity and viability.

SHORT - Delivered by the end of 2024

• Develop Jersey's approach to delivering an offshore windfarm

MEDIUM - Delivered by the end of 2026

• Agree an option for seabed lease with a suitable commercial development consortium

• Re-evaluate the other renewable energy sources, including tidal

LONG - Delivered beyond 2026

• Generate renewable energy for Jersey that can be utilised on-Island for existing and new economic growth opportunities or exported

3. International Connectivity

Improving our links to neighbouring jurisdictions in our region can bring economic value from increased access to markets, greater competition, a larger talent pool, removing natural barriers to industry, and enhancing tourism. We mostly rely on transport links to the UK via sea and air, but in addition there are opportunities to explore the feasibility of improving our interconnectivity and transport links to France.

Enabling regular commuters and freight via sea, air or a fixed connection with France may create new economic and labour opportunities and increase our overall resilience to external factors. While a permanent link with France is often discussed, it has not been exhaustively tested. Such a connection would fundamentally reshape Jersey's economy and significantly impact our Island life. Therefore, testing the feasibility will include analysis and discussion of the balancing factors, for everyone to review before any commitment is made.

SHORT - Delivered by the end of 2024

• Carry out a Cost-Benefit Analysis on enhanced connectivity options with France and decide which options to continue developing for this enabler

MEDIUM - Delivered by the end of 2026

• Evaluate options for Jersey's long-term sea connectivity

LONG - Delivered beyond 2026

• Create a sustainable level of connectivity that supports routine commuting to Jersey for work that alleviates certain economic barriers and unlocks economic growth for the Island

4. Research & Development

Skills  and  education  are  central  to  a  growing,  thriving  economy,  and  research  and development are closely affiliated with higher education. For example, for every £1 of public research funding they secure, Russell Group universities deliver an average return of £9 to the UK economy.[2] There is already provision in Jersey for higher education and we have the potential  to  grow  this  further  by  looking  overseas  for  best  practice  and  knowledge opportunities. Research capabilities may be built into collaboration with other establishments without the need for a physical location, with the possibility of a small, specialist research institution focused on innovation in Financial Services, digital, environmental, medical and creative industries.

To be successful, the development of our skills and research to stimulate economic growth will also need engagement from the private sector and partnerships with other organisations.

SHORT - Delivered by the end of 2024

• Review the existing on-Island provision and potential research models and partnerships MEDIUM - Delivered by the end of 2026

• Join  industry  and  Government  priorities  for  economic  growth  with  research  and development opportunities to galvanise key areas of focus

LONG - Delivered beyond 2026

• Create a programme of activity that is recognised globally as leading in specific areas and increases Jersey's reputation as a location of innovation and entrepreneurship

2. Increase Existing Sector Productivity

This section focuses on existing sectors and the work of Government to support their growth. As set out in the strategy, the interlinkages between different sectors means a holistic approach needs to be considered and all sectors are encouraged to embrace innovation  and  an  entrepreneurial  spirit.  The  importance  and  significance  of  an accumulation of small and large gains across the economy cannot be understated. We need all sectors to pull together to help increase Jersey's productivity.

1. Cross-cutting Enablers

With the interlinkages between  different sectors across our economy, there are certain activities that will help improve productivity.

Enabling businesses by removing barriers to trade will help will improve productivity and grow our economy sustainably. Focussing on this now will help reignite our entrepreneurial spirit. Working closely with our delivery arm in Jersey Business will be vital in supporting all our businesses to become more productive, to contribute to and benefit from the growth of our economy.

Looking outward, protecting and promoting Jersey's international reputation and enhancing relationships with our key global partners will serve Jersey's best economic interests. It will safeguard our competitive position as a platform for global business and promote growth through trade and investment.

In addition, increasing the level of economic awareness and analysis across Government and the Island will underpin sustainable economic growth by providing a better understanding of Jersey's economy, which can be factored into decision making. Alongside this, better use of data and insights to understand the levels and trends of productivity in our existing sectors compared to other jurisdictions will highlight opportunities for productivity gains.

SHORT - Delivered by the end of 2024

• Publish the Jersey Business Barriers to Business report and establish the process for delivering the priority actions underneath it

• Complete sector productivity reviews across our local economy (Retail and Visitor Economy; Arts, Culture and Heritage; Rural and Marine; Growth, Trade; Sport; Aviation and Maritime; and the Digital Economy)

• Publish an annual report to provide economic insights across the Island, track progress on the FEP, and offer future economic think pieces

MEDIUM - Delivered by the end of 2026

• Enhance the system for economic analysis to be provided as part of the Government of Jersey and States decision making processes

• Continue to deliver the priority actions from the Common Policy on External Relations 2022-2026 and support the UK, EU and Global Relations strategies[3]

• Develop a new Resilience Law to improve our response to whole-island incidents

2. Financial Services

The Financial Services sector in Jersey contributes the largest proportion to our economy. While growing the rest of the economy is important, we must recognise the role of ensuring our largest sector remains resilient and innovative.

By 2040, Financial Services will still be central to Jersey's economy and will have further evolved into a recognised sustainable finance centre with agile, proportionate and effective regulations that align to international standards. Streamlining of processes will help to reduce the cost of business, with the adoption of new technologies to help maintain Jersey's place as an attractive destination, enabling the right investments.

Investing and owning assets will be enhanced through technological advancements, creating new opportunities for industry development. Change generates new types of risks, meaning that Jersey will have to be at the regulatory forefront in order to secure against them.

Utilising our Arms-Length Organisation, Jersey Finance, to support a resilient, relevant and relationship-focussed sector will be vital in delivering the priorities of the finance industry.

SHORT - Delivered by the end of 2024

• Preparing for and delivering the 2023/2024 MONEYVAL evaluation, which will assess Jersey against the Financial Action Task Force international standards on anti-money laundering and countering terrorist financing

MEDIUM - Delivered by the end of 2026

• Leading the delivery of the Financial Services Policy Framework 2021, including a strategic roadmap for sustainable finance and enhancing the industry's ability to take advantage of FinTech and RegTech opportunities[4]

• Continue to explore how Jersey could implement Open Finance opportunities

3. Digital Economy

The digital economy is the total economic activity of digital businesses which produce digital goods and/or services, and digitally enabled businesses which are reliant on or significantly enhanced through the use of digital inputs. It includes the wider economic activity of producers and consumers, including Government and public services, that use digital inputs in their activities.

Digital platforms and tools used in 2040 will be different from those available today. In addition to supporting sustainable economic growth, it is important everyone benefits from the many ways in which digitalisation enhances our lives and life choices. The use of digital products and services already makes our lives richer, whether through opportunities for improving our work – life balance, connecting with friends and family, or enhancing our personal and organisational use of data.

Government has a role to help ensure everyone has the infrastructure, skills, and opportunities to fully benefit from digital opportunities. The Government's forthcoming Digital Economy Strategy (DES), which will complement Digital Jersey's strategic plan and delivery activities, will provide the overall framework to support the benefits of digitalisation with the aim to extract maximum value for Jersey.[5]

As the Arms-Length delivery body for Government, Digital Jersey will continue to support the aims of Government, driving economic development through the growth of the digital sector, promoting and supporting Jersey's tech industry, and supporting digital start-ups and research and development.

SHORT – Delivered by the end of 2024

• Publish the Digital Economy Strategy

MEDIUM – Delivered by the end of 2026

• Deliver the priority actions from the Digital Economy Strategy

• Promote the uptake and delivery of £20m via Impact Jersey[6]

4. Construction

Construction made up 7% of Jersey's economy in 2022 and makes a material difference to the rest of the economy.[7] Places that construction creates from offices to homes, have inherent value in attracting and retaining people to live and work in Jersey. There is a dependency on the speed and quality of planning, and the need for the delivery of physical goods supports Jersey's supply chains and connectivity to the UK and Europe.

Modern methods of construction seek to increase productivity and were prioritised as part of the 100 Day Plan.[8] As a major driver of the demand for construction on the Island, Government will use its purchasing power to smooth out the long-term pipeline of projects in Jersey. The States-owned entities Andium Homes and States of Jersey Development Company, will play important roles in our construction sector, by leading construction innovation and providing resilience though its development pipeline.

SHORT – Delivered by the end of 2024

• Create a Jersey Construction Hub

LONG – Delivered beyond 2026

• Continue progress towards supporting the development of key projects via the Council of Minister's Future Places policies

• Sustain the delivery of 3,000 new affordable homes by 2030

5. Retail and Visitor Economy

The Retail and Visitor Economy covers a range of businesses from restaurants to hotels, and shops to attractions, involved in providing goods and services to an end user from Jersey or those visiting.

Our retail and visitor economies provide high quality products and diversity of choice, as well as career opportunities, and playing a leading role in making Jersey an attractive place to live and visit. As people-orientated industries, communication skills are essential for building experiences for customers and creating a shared sense of place. Young people are often employed, providing entry into working life and career development opportunities.[9]

Through Visit Jersey, our tourism priorities can be supported and delivered, contributing to our vibrant Island economy. Moving forwards, harnessing opportunities presented by societal trends of more sustainable,  healthier, and outdoor  tourism  will play to Jersey's natural strengths and adopting new digital innovations will increase experiential offers.

SHORT - Delivered by the end of 2024

• Publish the Visitor Economy Strategy

• Publish the Retail Strategy  

MEDIUM - Delivered by the end of 2026

• Deliver the priority actions from the Visitor Economy Strategy

• Deliver the priority actions from the Retail Strategy

6. Aviation and Maritime

As an island, air and sea connectivity is fundamental to our economy. Goods can be imported and exported; residents can travel for work and leisure; and visitors can enjoy Jersey's offer, all contributing to the economy. Connectivity directly supports our businesses across the economy including Financial services, transport and logistics, construction, retail, and the visitor economy.

The  future  of  Jersey's  connectivity  must  be  environmentally  sustainable,  supported  by technological advancements. Proximity to the UK and EU provides opportunities to be a testbed for new emerging transport technologies and to benefit from the proximity to hub locations. Jersey must achieve an optimal level of connectivity for different passenger types to enable international access to Jersey's market and vice versa.

SHORT - Delivered by the end of 2024

• Publish the Ports Policy Framework

• Lodge amendments to update the Shipping (Jersey) Law 2002

• Establish improved connectivity to Europe whilst continuing to develop connectivity to the UK

LONG - Delivered beyond 2026

• Deliver the Ports Harbour Master Plan[10]

7. Rural and Marine

The Rural and Marine sectors cover all businesses involved in producing plant and animal products for the Jersey market and beyond. These sectors offer some of the highest quality products in the world, boosting Jersey's global reputation and preserving our beautiful Island environment and history. Identifying new and diversified niche businesses in Rural and Marine, with  the  potential  for  local  and  export  markets,  will  help  to  ensure  these  sectors  are economically sustainable and support future employment opportunities. For example, this could be developing expertise in specific marine and AgriTech areas and food system design that leads to Jersey becoming a test-bed destination.

Government will provide the framework that supports rural and marine economies to achieve a level of economic sustainability and obtain a return on our investment – aiming to enable growth with a focus on new, high-value production opportunities.

SHORT - Delivered by the end of 2024

• Create a Rural and Marine Development Programme

MEDIUM - Delivered by the end of 2026

• Deliver the priority actions from the Economic Framework for the Rural Environment[11]

• Deliver the priority actions from the Economic Framework for the Marine Environment[12]

8. Arts, Culture and Heritage

Arts, Culture and Heritage (ACH) make Jersey an enjoyable place to live, work and visit. They provide a rich variety of employment opportunities, encourage entrepreneurship, and nurture talent for the creative industries. ACH also plays a key role in extending recognition of the island  abroad  and  the  government  has  already  embarked  upon  a  cultural  diplomacy programme, exporting our cultural offerings to the wider world.

Automation of processes in the workplace will strengthen the importance of creativity as forecast by the World Economic Forum Future Jobs Report.[13] Our creative industries can support the development of our entrepreneurial spirit and raise productivity.

SHORT - Delivered by the end of 2024

• Review the economic contribution of the creative industries in Jersey

• Complete the refurbishment of the Jersey Opera House

MEDIUM - Delivered by the end of 2026

• Deliver the priority actions from the Heritage Strategy 2022-25[14] LONG - Delivered beyond 2026

• Deliver the priority actions from the Arts Strategy 2022-27[15]

• Complete the refurbishment of Elizabeth Castle

3. Support from an Effective Public  Service  

The Government of Jersey covers many areas, from teachers to emergency services, healthcare practitioners to policy teams, and many more. We are all united in our common purpose to deliver the best possible public services to support our Island and its people.

Government's key roles are to set the right conditions for sustainable economic growth for the whole economy, and within this, to ensure our £1bn budget for the public sector is spent and invested optimally. To do this, we need to lead by example, to continuously improve, innovate, and develop our entrepreneurial spirit.

We must work together collectively to achieve the future vision for our economy, based upon a healthy and skilled population, a long-term approach to migration, housing and infrastructure,  empowering  Arms-Length  Organisations  to  deliver,  and  enabling business to succeed.

1. Population and Labour Participation

Our people are the foundation to Jersey's economy and provide our workforce.

While labour participation in Jersey is relatively high, opportunities exist in creating greater flexibility and diversity, further enabling everyone who wants to work, and providing working patterns that suit individuals and their families. Historically, we have relied on inward migration to fill labour gaps and skills shortages, but we have a choice and an opportunity to change this over reliance on population growth for our future economy.

Government will have a key role in supporting flexible and well managed routes for skilled and necessary workers to move to Jersey, supported by timely labour market intelligence to identify emerging skills shortages. The aim is to reduce the impact of short-term skills shortages, providing time to support the development of skills for people already living in Jersey.

By 2040, like most developed countries, we will benefit from flows of workers from and to Jersey. We need to ensure that our regulatory environment continues to support the needs of our island.

SHORT - Delivered by the end of 2024

• Bring forward secondary legislation to support the development of clearer and more flexible population controls

 MEDIUM - Delivered by the end of 2026

• Review the legislation that controls access to housing for migrants and bring forward amendments as necessary

• Review the availability and quality of housing for those without full housing qualifications, and consider options for improvement

• Reduce the impact of ill health on the labour market through the development of the Workwell service

• Develop policies to support older workers who choose to remain in the workforce

2. Skills & Education

Education is essential for long-term economic growth. By 2040 we want the educational achievement or vocational skills of everyone to be high, supported by a mindset of lifelong learning to enable varied careers. Support for reskilling and the development of leadership and business skills will be important to empower everyone to achieve their full potential.

The children at school today will be our workers in 2040. We want Jersey's schools and colleges to have strong links with local employers so that every school leaver understands their education in the context of work, their future opportunities, and are equipped with good numeracy, literacy, and digital skills.

Harnessing digital opportunities to deliver education and learning will open new opportunities. Location may be less important with virtual delivery models, creating new possibilities for remote study and enhancing our Higher Education offer.

SHORT - Delivered by the end of 2024

• Review the current offer of leadership and business skills in Jersey

• Create a new skills model to help identify current and future labour and skills gaps to help target investment

• Establish a Skills Development Fund

MEDIUM - Delivered by the end of 2026

• Delivery of Education Reform and the Inclusion Programme

• Deliver the Skills Actionable Agenda[16]

• Ensuring Islanders of all ages can access training opportunities which support them to develop new and additional skills required by our changing economy, utilising delivery through our ALOs

3. Health

Our health and well-being are important to us individually, as well as the economy. The healthier we all are, the more fulfilling our lives, and the more we can participate in work and other activities.

As we live longer, the demand and overall costs of healthcare will rise. We will need more care workers to provide the essential help that many of us will need as we get older.

Digitalisation and automation of some health and care services, productivity improvements and preventative and self-care will help contain some of those rising costs. Sport and culture also play an important role in supporting our physical and mental health and well-being, which helps everyone remain economically active for longer.

SHORT - Delivered by the end of 2024

• Publish a Public Health Strategy, which will also set out the skills, resources and capacity needed to increase the focus on prevention

MEDIUM - Delivered by the end of 2026

• Assess future health and care funding requirements and determine future funding and financing options

• Develop a whole system health and care strategy with an associated whole system governance structure

• Develop and publish an updated Digital Health Strategy which will also set out the skills, resources and capacity needed to enhance the healthcare offer and patient experience

• Continually  improve  and  join  up  island-wide  health  and  care  services  through strengthened collaboration between the Island's health and care organisations

4. Housing & Infrastructure

Infrastructure  and  housing  provide  the  built  environment  that  supports  our  people  and economy to thrive. They create the places where we live, work and enjoy life in Jersey.

As a small island, our use of land is naturally an important consideration and developments are carefully scrutinised. Early consideration of future housing and infrastructure requirements that best support people are important, particularly due to the significant timeframes and costs involved. Specifically, as our demography changes there will be different types of housing and infrastructure needs.

SHORT - Delivered by the end of 2024

• Support the Fiscal Policy Panel Housing Review

MEDIUM - Delivered by the end of 2026

• Create a long-term Sustainable Housing Strategy that builds on the introduction of a new scheme backed by an initial £10m investment

• Invest in, and begin the delivery of the bridging Liquid Waste Strategy alongside a wider review of the longer-term infrastructure needs of Jersey

• Developing and publishing new plans for key areas identified in the Bridging Island Plan

• Continue to deliver key regeneration projects such as Fort Regent

5. Sustainability

By 2040 Jersey will be on a significant trajectory towards net zero with electrification of heating and transportation, and advancements in the provision of renewable energy generation. Waste management systems will be joined up across Jersey, allowing for circular economies to emerge where possible. The diversity of jobs in sustainability will increase alongside areas of specialism in green innovation such a renewable energy.

LONG - Delivered beyond 2026

• Continue to deliver against the Carbon Neutral Roadmap[17]

• Continue to uphold responsibility as a signatory to the Paris Agreement[18]

• Continue leading internationally on biodiversity protection and habitat management

6. Inward Investment and High-Value Residents

Attracting businesses to relocate to Jersey can help grow the economy in strategic areas with a focus on high-value and low footprint' to reflect Jersey's natural constraints. Business relocations help to raise the profile of Jersey; create new and diverse job opportunities; and can lead to a spillover effect though innovation and competition.

Encouraging and supporting appropriate inward investment is a key pillar towards achieving our economic vision. It supports our need for a resilient and innovative economy by diversifying business sectors, increasing productivity and introducing new ideas and innovations. New businesses bring new skills and opportunities to our people, giving greater choice of careers and future-proofing our workforce. More opportunity can create a fairer economy and promote our  Island's  reputation  in  the  global  marketplace,  thereby  encouraging  further  future investment and opportunity.

Jersey attracts High Net Worth Individuals (HNWIs) with a compelling financial and lifestyle offer. In 2040, Jersey will continue to be a destination of choice for those looking for a secure jurisdiction to manage their wealth whilst offering a high-quality of living. If current trends continue, they will be from a diverse range of industries, and through their investments, this will support more opportunities for our Island. We want to strengthen those relationships between our Island communities and High Net Worth Individuals to share mutual benefits, both economic and social.

SHORT - Delivered by the end of 2024

• Publish the refreshed Inward Investment Strategy

• Implement  a  consistent  assessment  process  for  all  inward  investment  which includes productivity standards as a condition

MEDIUM - Delivered by the end of 2026

• Review  priority  sectors  and  develop  specific  propositions  to  proactively  target suitable inward investment to the Island

• Increase the communication of Jersey opportunities presented to relocated HNWIs

7. Export

Jersey's economic history shows that exports enable growth and provide a diverse and resilient  economy.  Growth  is  generated  by  competing  in  new  markets  which  improves productivity, unlocking economies of scale, and learning from international best practice. Promoting  and  protecting  Jersey's  positive  reputation  and  relationships  with  priority jurisdictions in the UK, EU and globally, in line with the Common Policy on External Relations, will also facilitate exports of goods and services to customers beyond our shores.

Encouraging and supporting exports are a key pillar towards achieving our economic vision. We want to increase the variety and value of exports from Jersey so that a more sustainable, innovative, outward-facing and prosperous economy can be developed. In doing so, we will help Jersey businesses to unlock greater economies of scale, improve productivity and grow the economy. Exporting goods is dependent on supply chain efficiency and bolstering our physical connectivity with neighbouring jurisdictions.

MEDIUM - Delivered by the end of 2026

• Deliver the priority actions from the Export Strategy 2023-26[19]

• Ensuring  cross-government  input to  new  UK  Free Trade Agreements and,  where relevant, supporting External Relations with the expansion of Jersey's bilateral treaty network

8. Competition and Intellectual Property

Maintaining an attractive and competitive business climate with a robust, transparent and supportive regulatory framework, is essential for our economy. Oxera's 2015 review suggests conducting competition policy in a small economy is hard, but the economic benefits can be substantial.[20]

Competitive and well-functioning markets help create the right conditions for entrepreneurial activity and dynamic businesses to grow, which in turn improves productivity in the economy. With a more vibrant economy, this makes our island a more attractive place to live and work. The role of the Jersey Competition and Regulatory Authority is important, to ensure fair competition and well-functioning markets.

Intellectual property (IP) protection is a key part of economic policy which is increasingly driven by innovation, particularly in the digital space. IP rights ensure that there can be a reward for investment in innovation.

We want Jersey's IP framework to be modern and consistent with international standards to encourage businesses to locate and invest in Jersey. Investing in Jersey's IP framework will enable the Island to be included in and benefit from international IP agreements, instil confidence in rightsholders and promote Jersey as an attractive jurisdiction for IP holding, management and administration activities.[21]

MEDIUM - Delivered by the end of 2026

• Review Jersey's IP legislation and infrastructure to assess economic opportunities in this area

• Deliver the targeted review of the competition framework in Jersey to ensure it supports business innovation, growth and competition and protects the interests of consumers[22]

9. Long-term Financial Sustainability and Efficiency of Service

Future proofing the Government's income and expenditure involves reflecting global and local trends such as demographic shifts, non-linear career paths, automation, and remote working. It includes ensuring our pension systems are appropriate and sustainable in the long-term. Whatever changes are considered under the leadership of the Treasury, we must ensure the approach is equitable and maintains Jersey's position as being an attractive place to live.

We recognise Government needs to lead by example in how it conducts its own business and spends around £1bn per year. The Future Economy Programme will champion the use of economics across Government to support better decision making. For example, ensuring that the connections between different parts of the government are understood, and that where appropriate, decisions are made using an economic lens to support sustainable economic growth.

The new Value for Money Programme will drive a culture change across Government, to stimulate a focus on efficient processes and delivering even better public services. Colleagues across government will be supported to help identify and eliminate wasteful processes, which will improve public sector efficiency.

Innovation and the creation of an entrepreneurial spirit within government, whereby we are open to change and doing things differently are key to long-term financial sustainability. New opportunities will be available to deliver better public services through digitalisation and trialling automation, supporting even more efficiency and effective delivery. In turn, efficiencies create opportunities for re-investment, ensuring maximum economic benefits are achieved.

SHORT – Delivered by the end of 2024

• Leveraging  the  Budget  for  Innovation  and  Enterprise  for  sustainable  economic development. The £450,000 in tax incentives to grow Jersey's economy includes:

• 150% tax super-deduction for RegTech investment
• 60-day tax exemption period for short-term business visitors
• Credit-based relief for foreign tax on employment income

MEDIUM – Delivered by the end of 2026

• Conduct an early-stage review into the long-term global and local trends on Government income and expenditure

• Developing the details of a secondary pension scheme

• Oversight of the Pillars 1 & 2 project by Treasury – this is the ongoing Organisation for Economic Cooperation and Development (OECD) initiative to update international tax rules in light of the digitalising economy

• Macro review of Government expenditure to ensure the maximum economic benefit is achieved

• Continue the Value for Money Programme to save at least £10m per annum

• Publish and deliver the priority actions from the Government Digital Strategy

10. Align Services for Sustainable Economic Growth

Aligning Government and Arms-Length Organisations that directly support economic growth with the Future Economy Programme will reduce duplication and enable businesses to have seamless support to grow. Other important components include modernising the planning system for expediting outcomes, prioritising economic investments, and ensuring public land and buildings are used to support continuous regeneration, a sustainable environment, and a vibrant economy.

SHORT - Delivered by the end of 2024

• Support the Arms-Length Organisations involved in economic development to align with the FEP

• Ensuring the completion of the new Government headquarters building by mid-2024 and ensuring the timely and coordinated release of Government land and premises related to this

MEDIUM - Delivered by the end of 2026

• Work with Planning and Public Estates officials to improve the economic insights provided for the decision-making processes

• Ensuring the planning system is responsive to key priorities; and developing a new Island Plan review process that is agile, efficient and easily accessible

Delivering the Framework

The publication of this first Delivery Framework, along with the Strategy for Sustainable Economic Development, is a significant step towards achieving our vision.

It will be a long process, and we look forward to working together across Jersey to create a culture that embraces sustainable growth and reignites Jersey's entrepreneurial spirit.

Progress on actions in the Delivery Framework will be updated at intervals on Gov.je. A new Delivery Framework will be published within the first year of each new Government to reflect the updated opportunities and actions to help achieve the vision.

References

• Allas,  T.  (2015).  Jersey  Innovation  Review.  [online]  Available  at: https://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/R%20Jersey% 20Innovation%20Review%2020150911%20GB.pdf.

• Digital  Jersey  (2021).  5  Year  Strategic  Plan.  [online]  Digital  Jersey.  Available  at: https://www.digital.je/our-work/5-year-strategy/.

• Government of Jersey (2021). Financial Services Policy Framework . [online] Available at: https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/P% 20Policy%20Framework%20for%20Financial%20Services%20Industry%20of%20Jersey .pdf.

• Government of Jersey (2022a). A Heritage Strategy for Jersey. [online] Available at: https://www.gov.je/SiteCollectionDocuments/Jersey%27s%20culture%20and%20heritag e/R%20Heritage%20Strategy%20For%20Jersey.pdf.

• Government  of  Jersey  (2022b).  Carbon  Neutral  Roadmap.  [online]  Available  at: https://www.gov.je/SiteCollectionDocuments/Environment%20and%20greener%20living/ R%20Carbon%20Neutral%20Roadmap%2020220525%20JB.pdf.

• Government of Jersey (2022c). Economic Framework for the Marine Environment 2022. [online]  Available  at: https://www.gov.je/SiteCollectionDocuments/Environment%20and%20greener%20living/ P%20Marine%20Economic%20Framework%202022%20FINAL.pdf#:~:text=The%20stru cture%20of%20the%20framework%20provides%20opportunity%20for,on%20all%20gov ernment%20interventions%20which%20impact%20this%20area.

• Government of Jersey (2022d). Economic Framework for the Rural Environment 2022. [online]  Available  at: https://www.gov.je/SiteCollectionDocuments/Environment%20and%20greener%20living/ Rural%20Economic%20Framework.pdf.

• Government of Jersey (2022e). Further Education and Skills Actionable Agenda . [online] Available  at: https://www.gov.je/SiteCollectionDocuments/Education/Further%20education%20and%2 0skills%20actionable%20agenda.pdf.

• Government of Jersey (2022f). Have your say: St Helier Harbour is evolving to meet your needs.  [online]  harbourmasterplan.commonplace.is.  Available  at: https://harbourmasterplan.je/.

• Government of Jersey. Jersey Performance Framework. [online] gov.je. Available at: https://www.gov.je/Government/PlanningPerformance/GovernmentPerformance/Pages/ GovernmentPerformanceMeasures.aspx.

• Government  of  Jersey  (2022g).  Modern  Methods  of  Construction:  Housing  delivery innovation.  [online]  Available  at: https://www.gov.je/SiteCollectionDocuments/Planning%20and%20building/R%20Modern %20Methods%20of%20Construction%20-%20Housing%20Delivery%20Innovation.pdf.

• Government of Jersey (2022h).  New Common Policy for External Relations. [online] Available  at: https://www.gov.je/News/2022/pages/commonpolicyforexternalrelations.aspx.

• Government  of  Jersey  (2022i).  Outline  Economic  Strategy.  [online]  Available  at: https://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/P%20Outline% 20Economic%20Strategy%20for%20Jersey.pdf.

• Government of Jersey (2022i).  Paris Agreement extended to Jersey. [online] gov.je. Available at: https://www.gov.je/News/2022/pages/parisagreement.aspx.

• Government of Jersey (2022k). The Creative Island: An Arts Strategy for Jersey 2022-27. [online]  Available  at: https://www.gov.je/SiteCollectionDocuments/Jersey%27s%20culture%20and%20heritag e/R%20Creative%20Island%20Arts%20Strategy.pdf.

• Government of Jersey (2023a).  Export Strategy 2023 to 2026. [online] Available at: https://www.gov.je/government/planningperformance/tradeinvestmentgrowthframework/p ages/exportstrategy.aspx#:~:text=This%20document%20sets%20out%20both%20a%20 vision%20and,innovative%2C%20outward- facing%20and%20prosperous%20economy%20can%20be%20developed.

• Government of Jersey (2023b). Jersey Competition Law Consultation. [online] gov.je. Available  at:  https://www.gov.je/Government/Consultations/pages/competitionlaw.aspx [Accessed 13 Oct. 2023].

• Government of Jersey (2023c). National accounts: GVA and GDP 2022. [online] gov.je. Available  at: https://www.gov.je/StatisticsPerformance/BusinessEconomy/Pages/NationalAccounts.as px [Accessed 13 Oct. 2023].

• Hotrec (2018). Facts & Figures - Hospitality industry contributions to EU economy society. [online] HOTREC. Available at: https://www.hotrec.eu/facts-figures-2/.

• Impact Jersey. (2023). Home. [online] Available at: https://impact.je/ [Accessed 13 Oct. 2023].

• London Economics (2017). The economic impact of Russell Group universities. [online] Available at: https://russellgroup.ac.uk/media/5608/the-economic-impact-of-russell-group- universities.pdf.

• Oxera (2015). A review of the Jersey regulatory and competition framework. [online] Available at: https://www.oxera.com/wp-content/uploads/2018/07/A-review-of-the-Jersey- regulatory-and-competition-framework-1.pdf-1.pdf.

• The Economic Council (2020).  New Perspectives. [online] Available at: https://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/Economic%20 Council%20New%20Perspectives%20Report%20FINAL.pdf.

• World Economic Forum (2018).  The Future of Jobs Report. [online] Available at: https://www3.weforum.org/docs/WEF_Future_of_Jobs_2018.pdf.