Some Takeaways from Susie Pinel’s Talk at the Chamber Lunch

Some Takeaways from Susie Pinel’s Talk at the Chamber Lunch

The Treasury is continuing to fund government plan.

• “Putting children first” – she can’t have been hearing news on underfunded schools

• Supporting a “vibrant” economy. Meaningless adjective.

• Valuing the environment

Savings to be made across sectors to generate a balanced budget by 2024-2025. As can already be seen in Education!

The fiscal stimulus fund will be used to boost Jersey’s economy. The Three T’s are back again – Timely, Targeted and Terrible. The projects were not given but she did give away that there would be a focus on the construction industry. This is exactly the same as when this was done last time, ten years ago, when other sectors of the economy barely got a look in, and the supposition was that there would be a trickle down effect from building works to the rest of the economy – but nothing direct. There wasn't.

“No significant increases in taxation” – "significant" is an interesting word, isn't it?

States borrowing for major construction of new hospital, nothing else on horizon. No mention of new Cyril Le Marquand House and potential capital costs there, which slipped her memory!

World class IT infrastructure for Jersey’s government. No mention that it is 10 million over budget at £27m from £17m and still not on time. Not what “world class” meant in my day. Covid digital passport still delayed. World class delays and overspends?

Separate taxation – married partners [not as stated by Susie, just husband and wife]. From 2023 by choice, for everyone from 2025. Compensatory allowances for those losing out from marginal relief. No mention that it is time limited.

Stamp duty may be brought in on Share Transfer companies where property changes hands but as it is linked to shareholdings changing, avoids stamp duty.

Payroll systems – combined forms mean TIN numbers are needed in payroll systems from 2022.

Medical cannabis – companies to be taxed at 20%.

GST – de minimus from 2023 reduced to £60 from £135. Negotiating with Amazon on point of sale collection but wants to avoid Australia scenario. (They had shipping by Amazon suspended by being too heavy handed). From questions from the floor, retailers not happy with that as average purchase online is order of £25.  Reduction to £60 means more staff, and more packages delayed while GST is unpaid. £25 generates a whopping £1.25 GST, but in terms of staff times and storage probably costs at least twice as much.