Plans to freeze fuel duty in 2027 and increase the low-income threshold for personal income tax are among the measures being sought to help islanders with the cost of living as part of the new government’s intended spending plans unveiled today…
The proposed 2027 to 2030 Budget is the first Budget to be put forward by the new Council of Ministers, who took stewardship of their portfolios earlier this year following the election.
It will be subject to scrutiny before being debated by the States Assembly in December.
This Budget marks an important step towards tighter control of spending and strengthening of the island’s financial resilience
Treasury Minister Alan Maclean
So what could change? Express takes a look at the proposals…
If approved, the new Budget would see:
- The low-income threshold climb to £21,850, while child allowance would increase to £4,050. Additionally, childcare relief and enhanced childcare relief would rise to £8,300 and £21,550 respectively.
- A rise in subsidised nursery care for two to three year-olds by £2,150 per child, up from 15 hours to 20 hours a week.
- Fuel duty frozen in 2027.
- A family support payment of £250 per school age child for households earning up to £80,000 a year.
- A one-off £200 top-up to the Community Cost Bonus.
- The free school meals initiative extended to secondary school pupils on the Jersey Premium funding scheme.
- The Parental Grant doubled to £1,800 for families with newborns or adopting a child.
- Rises in duty of 1p and 5p on a pint of beer at the tap and a 75cl bottle of wine respectively.
- An extra 88p of duty on a pack of 20 cigarettes.
- A £347 jump in Vehicle Emissions Duty for the most polluting vehicles.
- Around £1.3 billion of spending on public services next year, which would be a rise from 2026 (£1.28 billion). The biggest departmental spend in 2027 would be on health (£406 million).
- Investment in buildings, infrastructure, IT and the new hospital totalling over £221 million next year. Nearly half of that (£103.7 million) is earmarked for the government’s New Healthcare Facilities Programme.
- £21 million of recurring savings allocated for 2027.
- Around £10 million to be raised through liquid waste charging from 2028 onwards, with receipts to be paid into the Capital Investment Fund.
Ministers also have plans to move to a three-year Budget from 2028.
Chief Minister Lyndon Farnham said the proposals struck “a careful balance”, with a view to “helping islanders with the pressures they face today” while “investing in Jersey’s future and maintaining strong public finances”.
“It includes practical measures to ease pressure on household finances, particularly for families and those facing the greatest cost-of-living pressures,” he added.
Treasury Minister Alan Maclean said the principle behind the proposed Budget was “straightforward”.
He explained: “Taxpayers’ money should be prioritised to where it delivers the greatest value to islanders.
“Government must live within its means and be prepared to make difficult choices when the evidence shows that money can be better used elsewhere.”
Senator Maclean added: “This Budget marks an important step towards tighter control of spending and strengthening of the island’s financial resilience.
“It puts the hospital on a more affordable footing and lays the foundations for the move to greater financial discipline with three-year budgets from 2028.”
