Tax rises or spending cuts?

Tuesday 21 April 2015

We’ll find out today how ministers plan to fill the new black hole of around £130 million in States finances with an announcement about cuts or tax rises due this afternoon.

Speculation has been building about the size of the deficit, which appears to have mysteriously grown since the election last October. Sources who have seen the figures have told Bailiwick Express have said it is around £130 million – that’s effectively the same as the combined budget of the Education and TTS departments; or the same as all the revenue from GST, fuel duty and stamp duty.

Chief Minister Ian Gorst and Treasury Minister Alan Maclean are set to reveal the figures today, a week ahead of the States’ debate on the Strategic Plan which sets priorities for the government over the next three years.

Ministers are understood to be pinning a lot of hope on the work being done by three independent advisers who are reviewing States spending, and looking for opportunities to cut inefficiency and waste.

Those consultants – including former Jersey Post boss Kevin Keen - are not planning on delivering one major report, but have been making recommendations about different potential initiatives over the last few weeks.