A political subject for a change (as it is back in the news)- Budget 2010

[The Backbencher]

Do any of the proposals wind people up? Income Tax exemptions on hold annoys me personally.

Budget 2010 – Jersey plans for future challenges
The Treasury Minister has announced proposals for his first Budget. Senator Ozouf outlined the fiscal background and clarified the tax and spending measures he is proposing in order to meet the expenditure decisions made during the Annual Business Plan 2010 debate.

Senator Ozouf said: “I am presenting the Draft 2010 Budget against a backdrop of the worst global economic downturn for 60 years. Jersey was well prepared for the economic turmoil, and took prompt action. The Fiscal Stimulus and Business Plan are now helping to get people back into work quickly, and are supporting businesses and Islanders. We are also making significant investment in front line services, but we need to prepare for the future.

“I recognise that 2010 will be a difficult year for Islanders. I am not proposing any tax changes except for impots duties. In fact many lower income families will benefit in 2010 from the 5% increase in income tax exemption limits agreed last year.

“As part of the 2010 Business Plan, the States agreed to more spend on Health. I am proposing to pay for this by increasing duties on alcohol and tobacco. I have listened to the Health and Home Affairs Ministers, who are both concerned about the effects of alcohol on our society. It is therefore appropriate to raise extra funds by increasing the duty on alcohol and continuing the policy of discouraging tobacco use. I am also proposing an increase in fuel duty to pay for environmental initiatives.”

2010 Budget proposals  

Income tax:

maintain income tax exemption limits at current levels
abolish Article 115(g) and 115 (ga) removing tax breaks for UK Superannuation Funds as a first step in the Blampied proposals
close loopholes and improve interpretation of the 0/10% provisions within the Income Tax (Jersey) Law 200-
Impôts Duty:

increase alcohol and tobacco duty to recover £0.7 million and £0.9 million respectively which is equivalent to the £1.6 million additional funding allocated to Health and Social Services in the 2010 Business Plan
align tax and duty rates on tobacco with those in the UK over a three to four year period
re-introduce a tax on car purchase. A low level Vehicle Emissions Duty (VED) is proposed, with similar exemptions and discounts to the previous Vehicle Registration Duty. This would be introduced from September 2010, raising £0.5 million in 2010 and £2 million in a full year
increase fuel duty by 4 pence per litre, including 3 pence to provide funding for environmental initiatives ahead of the proposed introduction of VED from September 2010
the increase in duty to give effect to these proposals represent:
58p on a litre of spirits
7p on a bottle of wine
2p on a pint of ordinary beer
30p on a packet of 20 cigarettes
4p on a litre of petrol
Goods and Services Tax:

extending GST exemption to higher education
strengthened anti-avoidance measures
Senator Philip Ozouf has also announced that the marine sector will contribute £200,000 in 2010, through a financial return from Harbours. Senator Ozouf says this is equivalent to about a third of the marine fuel duty concession, and is a first step.

The Draft Budget 2010 will be debated by the States on 8 December 2009.

Draft 2010 budget

Fiscal background to the budget

In setting out the the fiscal background to the budget, Senator Ozouf added: “There is a real risk that the downturn will open up a structural deficit in States finances because the tax base will shrink and take many years to recover, while spending continues to rise in real terms. The latest forecasts for this budget show the deficit risk is in the region of £40 - £50 million.

“I am determined to correct the deficit forecast for 2011 before it materialises. I hope the Comprehensive Spending Review and Fiscal Strategy Review will identify ways to help me achieve this. I am proposing this budget as the way forward for Jersey, and as the best means of tackling the challenges ahead.”

The Fiscal Policy Panel will be providing an update ahead of the budget debate which will take account of developments in the global economy.

[rogueelement]

The very real and apparent risk is that we have approximately 8000 Civil servants on a final salary pension.
I am sure that my figure will be disputed by interested parties , but it is a simple fact that Civil Servants and State owned business does employ that amount of people.
You can probably add another 2000 for quangoes and allegedly self supporting offshoots like Jersey Heritage, Jersey Post and WEB!!
What a total and freakin absolute buggers muddle we have got ourselves into.
Let us have some very clear States Policies
No increases for States Personnel on salaries until such time as perceived deficits are eliminated.
no increases of salaries or expenses for States members until the same is achieved.
No increases for teachers
Doctors
Nurses
Manual Labourers or anyone else! We are all suffering so can they!
a movement towards the elimination of the State from any activity which could best be served by the private sector.(By that I mean just about every single dept. of the States which does nothing but hinder Islanders.)
Let me ask a question, Supposing that we did not have a Tourism Office? would there be any significant loss to the Island of Tourism?
supposing we had an IDC comprising of 6-8 individuals who knew what they were talking about instead of a Cohen led group of over 50 people , the sole intention of which is to screw up planning applications until they, the "town planners" the geniuses , are recognised as being , really , really important people instead of the jobsworths we all recognise that they are?
Supposing Health and Safety was left to social security , supposing the duwks were left to private enterprise? Supposing that a crappy farm somewhere in the west did not need 1 million of our tax pounds to employ some polish people to dress in Jersey outfits and milk some goats, in order to provide amusement to 5 tourists and sound bites to our cretinous spin machine( another £800k for that department by the way! It really makes you proud)
Supposing we could sell our Airport so instead of costing us money we got tax revenue (always provided the the lunacy of ) 0 -10 tax is binned ASAP.
Supposing we invited someone like BUPA to look at our health Requirements ? I know that is a crazy idea ,but think about it. they could  run the hospital , give everyone in Jersey private health care and we lose the cost of all the civil servants employed to give us what is ..lets face it , a pretty shit servive.
I could go on and on but will leave it there for the moment .
In my view Jersey has represented the most Socialist regime of all of the countries in the northern hemisphere for a number of years .
Jersey people have never had it so good , so long as they are ill, single parented, drug addicts or work shy or all 4.
I have sympathy for those truly afflicted and needing help ,but for the rest of them I would suggest "self inflicted Injury) and my remedy would be "Dettol and a wire brush"

[man in the street]

totaly agree, spartacus, derail the gravy train.

[imacrappaud]

“I recognise that 2010 will be a difficult year for Islanders. I am not proposing any tax changes except for impots duties. In fact many lower income families will benefit in 2010 from the 5% increase in income tax exemption limits agreed last year."

Is there any chav bird out there that wants to breed a child so I can get a nice free gaff, I will give up my apparently average wage of 30k per year and do f all but breed more chav chidren. If willing I will help to breed 4 or more so we can get an even bigger free home to live in, and the best thing is we can use our garage as a room to let for a grand a month and the states wont even know because we will not declare the income.

Don't mock the offer just stick your credentials on the Gov.je website because I can accomodate. Did I mention I have a basement with no windows, its great it has electricity and i will be happy to provide a fake seaside picture on one of the bare walls.

[boatyboy]

Some real facts to inform real taxpaying hardworking people from all walks of life, that do not  work for the States of Jersey, however the public sector do contribute to the tax take, to be fair.

Many on the States payroll do excellent work. Lets also take into consideration that using Kent as a simple example should a big fire breakout they can, gain help from other counties so a small island must think ahead and have a larger emergency force than a county in England depending on the amount of people. This will cost a reasonable amount more.  

That said, the point is I learned a new figure last week from non other than Geoff Southern. Deputy Southern clearly stated and its on record, a figure of £70 million is the ongoing pension bill the island (taxpayer) has to pay annually.

So PJ members and readers.

Here we go, the cost for the public sector on 45 square miles of lovely island.

£ 70 million pension contributions.
£ 310 million wages.
£  31 million social security contributions.

So the total bill for the public sector on a small island before we buy a new ambulance or any other piece of equipment looks something like this.

£411,000,000 (£411 million) but of course this is not the truth.

Lets not forget the army of consultants ( Oxera installed almost full time) and short term contract employees ( locums at the hospital, stand in police chief ) who come out of department budgets but are not shown as employees.

The strangest thing is that the CoM just wants to tax us more, rather than dealing with the problem, too many staff for a small rock. The strangest thing................ we have actually an increase of nineteen new staff this year, four new members of the Chief Ministers department alone.

No wonder we are going into deficit, the economic panel of experts are warning of this fact, saying we have a structural financial problem.

Lets all wonder why ?

Boatyboy.

[Pomme de terre]

It is obscene Boaty. Good post.

[The Backbencher]

No further comment or predictions for tomorrow's budget?  I think the duty rises will be passed by a majority.  We are expecting an announcement on 1.(1).Ks, I expect this will be a target on people that pay no tax at all and I also wonder about the potential changes to corporation tax and as to whether this will be mentioned.

[Chevalier Blanc]

Ozouf tonight on BBC TV News said about GST going up "Not on my watch". 1 minute later or even less GST may well go up  can he ever tell the truth.

[rogueelement]

Ozouf tonight on BBC TV News said about GST going up "Not on my watch". 1 minute later or even less GST may well go up  can he ever tell the truth.

That is a ludicrous comment!
If it does go up you will be entitled to make such a comment but until then you are simply slagging someone off based on your personal bias instead of on any factual basis . come on CB , I think you are a decent bloke , but can we stick to slagging them off when they have done something wrong instead of what we might think they may do? I think they are all money grabbing non entities bereft of many a braincell but would not dare to suggest that they might lie .......next week!
Given that I think they are all crap  and we should disband "laughingly called parliament " in favour of anarchy until such time as I am elected unopposed dictator, it is unfair to pick on individuals , well, apart from Ma con, the Piltdowns , and Southern who are obviously beyond contempt !
sorry forgot Le claire , is there no bandwagon he would not hitch a ride on?

[Chevalier Blanc]

I am only repeat what ozouf said in the interview, watch it on the internet if you do not believe me.

[rogueelement]

Well if he says GST is not going to rise whilst he is in charge , we should accept that at face value , the only problem I have with that is that TleS is going to come back from Washington , loved up with Jesus and will have seen the light , advising him to resign which puts who in charge exactly? Not on my watch The clock must be ticking.

[Dundee]

I am only repeat what ozouf said in the interview, watch it on the internet if you do not believe me.

I gather what he said is that spending needed to be cut, and if the future recession continues as it is currently the Island is going to have a serious deficit and that money will need to be raised from certain areas and taxes will be looked at as a last resort, and secondary.
GSTCommon sense really.

 Then we have the union responding about cuts and the rights of those on the minimum wage and with no rights, not sure who he was talking about there, as most of his members are paid above  the average worker. And as has been said the private sector has had cut backs and redundancies, yet the States sector workers expect to be exempt from such hardships, I am sure a lot of services will now be privatized.

[rico sorda]

This is from CTV


GST in Jersey could rise to 12% over the next few years.

The Auditor General believes that to put a halt to the island's mounting debts, the rate needs to increase.

The controversial Goods and Services Tax was introduced two years ago amid mass protest.

Last year the budget report took a pessimistic view of the year 2014. It said that by then, the island could have a deficit of £80m - but that was if expenditure grew at a lower rate than it actually has.

Now the Comptroller and Auditor General is saying the worse case scenario is more likely to be a £171m deficit which would wipe out most of the states strategic reserve.

The suggestion being made to the States is to increase the rate of GST to 8% this year and then raise it every year until 2014 to 12% - for times the current rate.

rs

[Chevalier Blanc]

Ozouf is right when he said "Not on my watch" with the rising of GST. The reason is because it cannot go up until next year ( 3 years ) then it is elections and ozouf is thinking that he will become CM. The GST will go up after the elections so Ozouf is right unless he does not get the CM'S job. I hope he does not.

[ole razzy]

There must be better then Ozouf. Surely? Ian Le Marquand might be although the way he's sitting on his hands with the Wiltshire report does make me wonder.

I was out for dinner with a Treasury employee last week. He told me that Philip has been saying that he's a qualified mathematician. Surely that cant be right? His website says this; "I was educated at Victoria College and graduated from the European Business School in London, Frankfurt and Paris. Before returning to Jersey, I worked for one of the world’s largest companies in numerous places around the world."

Do you think once he graduated he worked in McDonalds? Maybe on the tills? His personal warmth and charisma combined with his undoubted calculus skills would make him a 5 star employee in my books!