Jersey fuel duty to be frozen in 2024

Fuel duty in Jersey will not rise next year under the Government Plan put forward by ministers

Fuel duty will be frozen in 2024 after Jersey's government backtracked on plans to increase the tax in line with inflation.

Ministers have also reduced by half their plans for a hike in alcohol duty.

Backbenchers and businesses had warned that the government's initial proposals would harm the island's economy.

Politicians will vote on the 2024-2027 budget, also known as the Government Plan, in a debate beginning on 11 December.

In draft budget proposals published in September, ministers had suggested increasing fuel duty in line with inflation of 10.9%, with 7p to be added per litre.

The tax was not increased in 2023.

The government said a rise from 1 January 2024 would support "Jersey's Carbon Neutral objectives".

But ministers have now accepted an amendment to their budget from the Economic and International Affairs Scrutiny Panel.

It suggested freezing fuel duty for another year "in order to provide support to the hospitality sector, and [the] island's economy more generally".

'Increase taxes on alcohol'

The move will reduce predicted government revenues by £2.7m.

A further amendment from the scrutiny panel, which calls for alcohol duty to also remain at its 2023 level, was not accepted by the government.

Instead, ministers revised down initial proposals.

Rather than the 8.9% rise initially suggested, they said they intend to increase taxes on alcohol by 4.5% from 1 January.

Costing the public purse £1.03m in lost revenue, the government said it was "a compromise that balances the support for the industry through reduced alcohol duties, with the health consequences of alcohol consumption".

But States members could still throw out ministers' proposals and vote in favour of alcohol taxes being frozen.

A debate on the government's budget, and more than 30 changes proposed by backbenchers, is expected to begin in Jersey's States Assembly on 11 December.

"We are proposing a balanced and prudent Government Plan, which will assist islanders with the immediate challenges we are facing - especially housing and the cost of living - and invests more in the key public services that we all rely on," said Chief Minister Deputy Kristina Moore.

Follow BBC Jersey on X (formerly Twitter) and Facebook. Send your story ideas to [e-mail].