Current plans to fund Jersey’s new hospital at Overdale may be in jeopardy following warnings that a key source of government income could dry up due to US instability.
The island had expected to use proceeds from a new global tax framework – known as the Pillar 2 international tax agreement – to help cover nearly £70m of the new hospital project’s cost.
However, External Relations Minister Ian Gorst told Scrutiny last week that the United States is now pushing for changes to the system, and that it was uncertain whether the revenue would continue past 2025.
“There will be effects on the public purse,” he said. “We can’t stop building the hospital… but it does put pressure on officials and the rest of government to ensure they can fund that borrowing.”
Treasury Minister Elaine Millar also confirmed that the Government may now be unable to finance major regeneration projects – including the £110m plan to regenerate Fort Regent – unless more money can be borrowed.
Funding proposals for Fort Regent have not yet been finalised – the government previously said they will be presented to the States Assembly once the design has been finalised, pending the outcome of the current public consultation.
Part of the build is due to be financed privately, however – a hotel proposed for the former site of the swimming pool. The potential hotel provider has not been revealed.
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Express takes a look at what the recent geopolitical turmoil could mean for Jersey, as well as its neighbouring island’s take on the situation…
FOCUS: Will Jersey suffer or benefit from US tariff drama?
Is the island going to suffer the indirect economic impacts of a “potential global recession” in the wake of new US tariffs, or will its financial services industry profit from a panic-driven shift of American wealth overseas? And what could the instability mean for some important infrastructure projects coming up soon?…
