Government plans £4m digital injection

Thursday 01 August 2019

Jersey’s government has planned a £4million cash boost for Digital Jersey over the next four years to help attract more start-up businesses, create new jobs and develop the use of FinTech in the island - but the organisation's CEO says it might not be enough to reach all their ambitions.

The suggestion to increase the digital development agency’s funding for the first time in five years comes as part of the government’s ambition to “create a sustainable, vibrant economy and skilled workforce for the future".

The almost £4million increase was detailed in a document attached to the recently launched Government Plan 2020-2023, which sets out the island’s political priorities.

As part of a series by Express digging into the detail of that plan, today’s piece - which falls on World Wide Web Day - focuses on the ambition for government-funded Digital Jersey, which champions the island’s digital sector.

Pictured: The Government Plan sets out the island's political priorities.

In the Government Plan itself, the intention to invest in digital is clear as a means to address the productivity slump and imbue future generations with “the skills and capacity to respond to fast-evolving developments in technology.”

The attached document states that “funding is requested to support the growth of the digital sector, the diversification of the economy and to enhance Jersey’s inward investment appeal leading to a measurable improvement in GVA, jobs and productivity within five years." 

As detailed in the document, the additional funding required is as follows:

• 2020: £697,000;
• 2021: 897,000;
• 2022: £1,097,000;
• 2023: £1,197,000.

It also says that this will cover “baseline running costs for the expanded Digital Jersey Hub” and “grow Digital Jersey’s capability” by increasing the marketing budget as well as expanding the team, adding a ‘FinTech Ambassador’, a ‘Head of Technology’, a ‘Head of Operations’, a ‘Business Development Manager’ and a ‘Project Manager'.

Digital Jersey CEO Tony Moretta said that if this cash injection is secured, it will be the first time the association’s core funding has been increased for several years. 

Mr Moretta explained that the government's spending plan “shows the sort of areas we will be investing money in", but noted that "we won’t be doing all of that as the increase is not as large as we had requested, which is fine as I’m sure no-one got exactly what they asked for understandably when Government has so many requests on its funds.” 

Pictured: Digital Jersey CEO's - speaking here at a previous event - said the increase proposed by the government was not as large as requested.

He added that the bid will mean they can concentrate on three main areas: 

• covering “increased costs” for a twice-the-size Digital Jersey Hub and other projects;
• increasing the Digital Jersey “headcount to manage [a] more substantial workload” including the “larger number of enquiries from companies about Jersey as a testbed and location for their business and in particular deliver our new FinTech Roadmap, including co-ordinating an island wide approach with Government, Jersey Finance and the JFSC”;
• increasing the “marketing budget which for 2019 has been less than £100k, meaning more events and marketing campaigns on and off island to drive the digital economy, attract talent and new companies, deliver new jobs, etc".

Mr Moretta also emphasised that although the funding is earmarked for Digital Jersey in the plan, they will have to present the Government with a detailed Business Plan to explain what they will be using the money for and what they plan to deliver before the funding is confirmed.

Read more in the series…

£6m crackdown planned to plug tax leaks

£14m culture boost planned by 2023