Jersey spare funds to be retained amid tariff war

Deputy Elaine Millar said savings in the Stabilisation Fund were "virtually exhausted"

US trade tariffs and volatility in financial markets could lead to a change for Jersey's spare funds, a scrutiny panel heard.

Deputy Elaine Millar, Minister for Treasury and Resources, said savings in the island's Stabilisation Fund were "virtually exhausted".

She said any spare funds may be retained in contingency rather than transferring it to savings because "locking it up may not be the best course of action".

Corporate Services Scrutiny Panel chairwoman Deputy Helen Miles said it was concerning the island's financial buffer was depleted, adding: "Global volatility will impact our island and prudence is needed."

Funding risks

Miles said the minister had been transparent about the changes since the trade war began.

"If this leads to a global recession, then this will impact Jersey," she said.

"What is also concerning is that the Pillar 2 tax revenues, which had been earmarked to help finance the hospital, might not now materialise as expected which is increasing pressure on public funds to finance the build."

She said the island may not be able to afford to finance regeneration plans, including the redevelopment of Fort Regent, as money would need to be borrowed in addition to the new hospital costs.