Alcohol duty frozen in proposed 2025 budget

Chief Minister Deputy Lyndon Farnham said the budget committed to "building a secure future for Jersey"

Single person tax allowances are set to increase and alcohol and fuel duty will be frozen under new proposals in the 2025 Government Budget - subject to approval by the States Assembly.

The 2025 Budget, which sets out how much money the government will spend where over the next two years, highlighted a 5.7% increase in spending - a drop from 9.4% in the previous plan.

If approved, work on Overdale Hospital will begin, with £710m set aside and plans to have it completed by 2028.

The Chief Minister, Deputy Lyndon Farnham, said the budget committed to "building a secure future for Jersey".

There will be an increase to the amount of money islanders need to earn individually before they are taxed, with the threshold raising from £20,000 to £20,700.

Married or civil partners will see their thresholds raised by £1,150 and there will be a £250 increase for second earners.

The government said nursery and childcare provision would be extended to children aged two to three with additional needs.

Concerns were raised in May that it would not be able to meet its pledge to provide free care for two and three year olds.

Instead, an increase of £150 relief will be applied for child allowances, a £200 rise for additional allowances, a £250 increase in childcare tax relief and a £700 increase in higher childcare tax relief.

Tobacco duty will increase by 83p per pack of 20 cigarettes and vehicle emissions duty will increase by 20% for the "highest CO2 emitting vehicles" to support the Climate Emergency Fund.

'A robust plan'

The government also said it would introduce £20m in support for businesses transitioning to the Living Wage to help "improve the standard of living for workers while promoting sustainable business practices".

It would see the minimum hourly rate raised from £11.64 to £13.41.

A total of £97m will be invested into buildings, infrastructure and IT and £91m will go towards purchasing the new Government HQ.

Mr Farnham said the budget would address "the most pressing challenges facing our island".

He said: "The Government of Jersey's 2025 Budget is a robust plan for the remaining two years of this administration.

"It provides stability, demonstrates fiscal responsibility and ensures that public funds are used in a targeted and controlled way to the benefit of islanders."

The proposed budget will be debated by the States Assembly later this year.