A new vaping tax, ‘tap relief’ for bars and restaurants, and a £77 charge for ‘misuse’ of the Emergency Department – plus higher personal income tax thresholds and child allowances – are among the key features of the government’s newly published spending plans for next year.

In Jersey, public spending is now enshrined in something called the ‘Budget’, which is always published around this time of year and then debated and voted on by States Members in December.

It sets out Ministers’ spending plans for the year ahead, so 2026 in this case, and then spending ambitions for the following three years, so up to 2029 with this edition.

It also sets out how Ministers expect to fund those plans – usually through a series of taxes and charges, and sometimes savings.

So, what has been decided for 2026? Express took a look at the headline numbers…

How are allowances changing?

£550 increase in personal income tax thresholds from £20,700 to £21,250

£100 increase in child allowance

£150 increase in additional allowance

£200 increase in childcare tax relief

£550 increase in higher childcare tax relief

How is the price of alcohol, smoking and fuel going to change?

+1.0p alcohol duty increase on 500ml can of beer…

…but -5.4p alcohol duty reduction in an pint of draught beer (tap relief)

+1.7p fuel duty increase per litre of fuel

+80p tobacco duty increase per 20 pack of cigarettes

+£2 vehicle emissions duty on the least polluting vehicles

+£2,480 vehicle emissions duty on the most polluting vehicles

+£2 vaping tax per 10ml

A -1% reduction in higher rate of stamp duty on non-main residence properties – that’s second homes or properties bought with a view to letting them, for example.

Are there any new charges for islanders?

£77 charge for anyone who attends the Emergency Department instead of seeing their GP

£55 charge for islanders who repeatedly miss outpatient appointments

£10m is expected to be raised through liquid waste charges introduced from 2028 onwards

£31m is expected to be raised next year by Revenue Jersey by tightening up its tax collection and enforcement practices. Civil penalties will also be introduced for incorrect GST returns, but an exact level is yet to be confirmed.

How much is each government department getting?

£381m departmental spend in Health and Care Jersey

£246m departmental spend in Children, Families, Education and Lifelong Learning

£113m departmental spend in Employment, Social Security and Housing

£74m departmental spend in Infrastructure and Environment

£68m departmental spend in Justice, Home Affairs and Police

£53m departmental spend in Economy, Financial Services and External Relations

£50m departmental spend in Non-Ministerial and Other States Bodies

£47m departmental spend in Treasury and Exchequer

£35m departmental spend in Digital Services

£22m departmental spend in Jersey Overseas Aid

£18m departmental spend in Cabinet Office

£13m departmental spend in People Services

How much will be spent on capital projects next year?

£174.7m capital expenditure on the new hospital

£60.8m capital expenditure on estates

£34.1m capital expenditure on infrastructure

£25.2m capital expenditure on information technology

£11.6m capital expenditure on replacement assets and minor capital

£1.8m capital expenditure on feasibility

How much of our island’s key funds will be spent?

£353m expenditure from the Social Security Fund on pensions and other benefits

£96m expenditure from the Long Term Care Fund on long-term care benefits

£59m expenditure from the Health Insurance Fund on health benefits

What do the Ministers say?

The Chief Minister, Deputy Lyndon Farnham, said: “Despite global uncertainty and lower-than-expected income in 2024, this Budget sets out a clear and responsible strategy: controlling the growth of public spending, reducing our reliance on external consultants, and directing investment towards health, education, infrastructure, and economic resilience.

“Through the ‘Investing in Jersey’ programme, we are taking a long-term view, renewing public assets in a way that extends beyond political cycles. The Jersey Capital Investment Fund will provide transparency, certainty, and continuity in delivering major infrastructure projects. By streamlining government operations and supporting our economy, from digital healthcare to maintaining a competitive finance sector, Jersey is well positioned to respond to current pressures while building a secure and prosperous future.”

The Minister for Treasury and Resources, Deputy Elaine Millar, added: “This year’s Budget takes a balanced and strategic approach to supporting Islanders while preparing Jersey for future challenges. It provides tax relief to help households manage the cost of living, while also introducing health-focused measures such as taxes on vapes.  

“Key investments in health and children’s services, alongside the capital programme aims to enhance infrastructure, including Fort Regent and new healthcare facilities, and modernise government systems. The Budget also emphasises long-term financial resilience, with prudent borrowing and investment decisions that reflect a shift away from short-term fixes. Overall, it positions Jersey as a place of opportunity, stability, and forward-thinking governance.”   

What could the Budget mean for you? Try our interactive tool…

Who are you in Budget 2026?

Tap the option that sounds most like you to see how Jersey’s Budget 2026 could affect your pocket and the services you use.

Personal tax thresholds go up by £550 to £21,250, so a little more of your income is tax-free. Child allowance rises by £100, the additional allowance by £150, and childcare tax relief increases by £200 (or £550 for the higher relief band).

The government is also putting more money into nursery provision for two- and three-year-olds, which should make formal childcare slightly easier – and cheaper – to access over time.

On the cost side, fuel duty goes up by 1.7p per litre, which nudges up the price of the school run and weekend activities, and everyday prices may still feel tight despite the extra tax relief.

Overall: a modest boost for working families, especially those paying for childcare, but daily costs remain an issue.

You benefit from the same higher tax thresholds and allowances as everyone else, but the bigger story is on the corporate side: the Budget assumes new receipts from the OECD’s Pillar Two minimum tax and earmarks part of this for keeping Jersey’s finance sector competitive.

That includes investment in regulation, digital systems and promotion of Jersey as a jurisdiction, with the aim of protecting jobs and keeping the Island attractive for high-value business.

There are no headline-grabbing new personal taxes aimed specifically at higher earners, but you will still feel any increases in duties on fuel, alcohol, tobacco and vaping in your day-to-day spending.

Overall: broadly neutral for take-home pay, but with continued political focus on your sector to fund public services.

If you run or work in a bar or restaurant – or just enjoy a pint – “tap relief” is the headline: duty on a pint of draught beer or cider is cut by around 5.4p compared with where it would be under simple indexation.

In practice that means slightly cheaper duty on pints pulled from the tap, while cans and bottles see duty rise in line with inflation. The policy is aimed squarely at supporting pubs and restaurants rather than at-home drinking.

Fuel duty increases and wider cost pressures still affect deliveries, energy bills and wages, so overall operating costs remain under strain for the sector.

Overall: a small win on draught drinks for both venues and customers, against a backdrop of rising underlying costs.

Road fuel duty is unfrozen and goes up by 1.7p per litre, making every tank of petrol or diesel slightly more expensive. Duty on low-emission HVO fuel stays frozen to encourage greener choices.

Vehicle Emissions Duty rises sharply for higher-emission cars: the cleanest bands see increases of a few pounds, while the most polluting models face charges running into the low thousands when first registered.

If you are buying a new or imported vehicle, the Budget clearly nudges you towards lower-emission options; if you drive a lot in an older, less efficient car, you will feel the cost increases more.

Overall: clear pressure to go greener, with higher upfront and running costs for bigger-emitting vehicles.

Smoking gets noticeably pricier: duty on a standard 20-pack of cigarettes rises by around 80p, reflecting inflation plus an extra health “escalator”. Cigar duty rises even faster to close the gap with cigarettes.

Vaping is no longer in the tax-free zone. A new duty of 20p per ml is introduced on vaping liquids, with a small duty-free allowance for travellers bringing products in for personal use.

The stated aim is to deter young non-smokers from taking up nicotine while keeping vaping cheaper than smoking for those trying to quit.

Overall: clear financial pressure to cut down or quit, whichever form of nicotine you use.

Two new charges are planned to change behaviour: a £77 fee for people who use the Emergency Department for issues that could reasonably be dealt with by a GP, and a £55 fee for patients who repeatedly miss outpatient appointments without telling the service.

On the investment side, there is heavy spending on health: around £174.7m of capital for the new hospital in 2026, plus extra money for digital health systems aimed at making care more joined-up and accessible.

There will be exemptions and an appeals process for the new fees, but anyone who often uses hospital services is being nudged to use them more appropriately.

Overall: better-funded services with some new sticks for avoidable demand and missed appointments.

The Social Security Fund is expected to spend around £353m on pensions and other benefits in 2026, with a further £96m from the Long Term Care Fund and £59m from the Health Insurance Fund to support care and health benefits.

The Budget also commits ongoing tax transfers into the Social Security Fund to help keep it sustainable as the population ages, although the formula for these transfers is being tweaked to stay affordable.

Retired Islanders with some taxable income benefit from the higher personal tax threshold, but will also notice increases in duties – especially if they smoke, drive regularly or rely heavily on hospital services.

Overall: continued protection of pension and care funds, with a gentle squeeze from higher duties depending on lifestyle.

This guide is based on headline measures from Jersey’s proposed Budget 2026–2029. Final decisions rest with the States Assembly when the Budget is debated.