Economic impact of mini-budget to be reviewed
10th August 2022
The Economic and International Affairs Scrutiny Panel has launched a review into what consideration has been given to the impact of the Government of Jersey's proposed cost of living mini-budget in different sectors of the economy.
The Panel's review will seek the views of the Minister for Economic, Tourism, Sport and Culture and the Government's Chief Economic Advisor on the potential short and long-term economic impact of the measures contained in the mini-budget, including:
Postponing the obligation for offshore retailers to register under the Goods and Services Tax (GST) from 1 January 2023 to 1 July 2023;
The implications of changes to the minimum wage and the delay in implementation of the living wage; and
Encouraging landlords to cancel or reduce rent increases in the short-term and whether this will have sufficient impact on the cost of accommodation and therefore the current staffing crisis.
The Panel will seek to engage with the Minister, the Government's Chief Economic Adviser and local businesses to gather evidence for its review, which will sit alongside the Corporate Services Scrutiny Panel's separate review of the mini-budget.
Chair of the Economic and International Affairs Scrutiny Panel, Deputy Moz Scott, commented: "The aim of the Panel's review is to look specifically at whether the Council of Ministers have given due consideration to the impact of the mini-budget on economic productivity and staffing issues and what methodology is being used by the Minister and the Chief Economic Advisor to reach their conclusions. The Panel will also release a call for evidence shortly to seek views of local businesses on the Government's proposals directly."
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