Final States’ advice on Brexit due next month

Thursday 21 July 2016

Treasury Minister Alan Maclean says “flexibility” is the key to dealing with the UK referendum result on Brexit.

With the UK set to leave the EU, Senator Maclean's Treasury Department will be presented with a Fiscal Policy Panel report in around six weeks - detailing how the Island’s rule makers should deal with the economic fall-out of the referendum decision.

That panel report is, in effect, a last chance for policymakers to make changes to the Medium Term Financial Plan (MTFP) - which will be discussed in September - and is designed to make multi-million pound savings by the States.     

Senator Maclean said: “The Fiscal Policy Panel annual report will be presented at the end of August. It will go to Ministers and States members at the same time and we can all look at it. 

“I think the important point - and they have been saying this for some time - is that there is some risk on the downside of the decision by the UK referendum to leave the EU, as it has led to global uncertainties. The panel have so far stated very clearly that we should have plenty of flexibility in our plan and I think that is the relevant advice they have given. 

“Flexibility involves such things as contingencies and reserves and how we might deploy them if we see a sharp deterioration in the economy.”