The Government’s proposed Budget came under fire last night after it emerged that ministers plan to double the tax-free relocation allowance for imported workers – a move critics say will actively accelerate the exodus of young islanders.
Buried within the Budget document is a proposal to raise the current £7,500 tax-exempt allowance for miscellaneous relocation expenses to £15,000. The exemption applies only to individuals moving into Jersey for new employment – not to islanders already living and working here.
At a Question Time event hosted by All Island Media last night, former Senator Ben Shenton raised concerns that the Government is prioritising financial incentives for people moving to the island, while offering little to young islanders struggling to remain here.
“What are we doing for the young people in the Budget?” he asked.
“Well, I’ll tell you what we’re doing. We’re increasing the relocation allowance for the person coming in to replace them from £7,500 to £15,000 tax-free.
“That’s what we’re doing in the Budget for young people so there’s no wonder that people are leaving.”
Mr Shenton shared the story of a young girl he spoke to who lost out on a job to a non-local candidate.
“This girl will leave the island, and they will bring someone in to replace her, and they’re going to incentivise them by doubling the current £7,500,” he said.
“The number of stupid decisions the public sector make which affects the private sector and causes less jobs, less growth and hardship is unacceptable, and they have to start thinking.”
Mr Shenton warned that the island is on the brink of a demographic and economic cliff, citing an ageing population and the rapid encroachment of AI on entry-level roles.
“With an ageing population, and with AI coming in – which is going to take away a lot of the entry-level jobs – we’re going to have real problems unless we do more to hold on to our youth,” he said. “Someone from the UK gets a relocation allowance, but if you’re in Jersey you don’t get anything.
“With an ageing population, and also with the added influence of AI coming in – which is going to have a massive impact on the island, because it’s going to take away a lot of the entry-level jobs – we’re going to have real problems unless we do more to hold on to our youth,” he said.
He called for the Government to consider “positive discrimination policies” in taxation and employment to directly benefit young islanders, even suggesting that residents may be willing to pay slightly higher taxes if there were “clarity” on how public money is being spent.
Treasury Minister Elaine Millar rejected Mr Shenton’s criticism, insisting his characterisation of the Budget was inaccurate.
“That’s simply not true,” she said, arguing that while Jersey does need to attract some specialised workers from off-island, significant investment is already being directed toward islanders.
“We’ve got more money going into apprenticeships,” she said. “We’ve got money going into skills.
“We’ve got buy-to-let schemes, and schemes to get young people, first-time buyers, and indeed, second-time buyers onto the property ladder. So we are doing everything we can to help people into home ownership.”
Deputy Millar said that Jersey’s tax allowance represented “the biggest investment for young people”.
“It is the biggest tax allowance in any neighbouring jurisdiction,” she said.
The Treasury Minister argued that comparisons with the UK were misplaced, suggesting that if a young islander moved there then they would be likely to “earn very much less and will pay very much more tax”.