The government’s proposed Budget does little to address the cost of living for lower- and middle-income households, the Consumer Council has warned – raising concerns that higher duties and charges could cancel out promised tax relief.

The watchdog has called for an independent review of how Jersey’s tax burden is shared, warning that the combined impact of taxes and contributions may be placing more pressure on working households.

Consumer Council chair Carl Walker welcomed some measures in the proposed 2027–2030 Budget, including a £600 increase in the personal income tax threshold and increases to child allowances and childcare tax relief.

But he questioned whether families would ultimately see an improvement in their finances.

“The Budget contains some welcome relief, but the Council is concerned that it does little to address the cost of living for lower and middle-income households,” the submission said.

“We are also concerned that gains from higher allowances may be offset by increases elsewhere.”

It urged the panel to test whether households would actually be better off once higher duties and other charges were included, and called for analysis showing the overall effect on different household types and income groups.

While recognising the health reasons for increasing alcohol and tobacco duties, the Council warned that these taxes “fall hardest on lower earners” and would add pressure to struggling hospitality businesses and their employees.

The proposed fuel-duty freeze for 2027 was described as “a welcome start”. However, the Council said it would have supported a temporary cut during 2026, following increases in petrol and heating-oil prices, and asked whether this could still be considered.

It also described the inflation-linked increase in Vehicle Emissions Duty as another motoring cost that many consumers would only notice when paying it.

The Council contrasted pressure on everyday spending with plans to extend the reduced 2% stamp-duty rate for non-main residences into 2027.

It warned that the relief benefited buy-to-let investors and second-home buyers and could increase pressure on housing supply for local residents and first-time buyers.

Calling for a comprehensive tax review, the Council said this could examine whether the upper earnings limit for Social Security contributions should be raised or removed so higher earners contributed more of their income.

It was not proposing the removal of GST from food, acknowledging that this would probably require a higher overall rate, but said the Budget offered no alternative support for lower- and middle-income households.

The Council also criticised the accessibility of the Budget documents, particularly the Financial Annex, calling for a plain-English summary to explain what the proposals would mean for typical households.