#alternate alternate BBC Homepage * Skip to content * Accessibility Help * Your account * Home * News * Sport * Reel * Worklife * Travel * Future * Culture * MenuMore Search * Home * News * Sport * Reel * Worklife * Travel * Future * Culture * Music * TV * Weather * Sounds (BUTTON) Close menu BBC News Menu * Home * Coronavirus * Climate * Video * World * UK * Business * Tech * Science * Stories * Entertainment & Arts More * Health * World News TV * In Pictures * Reality Check * Newsbeat * Long Reads * Europe * Jersey Jersey 'should not raise taxes despite weaker economy' Published 9 November 2021 (BUTTON) Share (BUTTON) close Share page (BUTTON) Copy link About sharing St Helier Image caption, Jersey's non-finance sectors struggled with the impact of coronavirus, economic experts said Jersey's States should not increase taxes despite a weakened economy and a predicted increase in inflation, an independent group of experts has said. The Fiscal Policy Panel (FPP), which provides economic advice, said in a report it would not be appropriate to impose a heavier burden on taxpayers. It also said the island must be careful not to start paying people too much, which could drive inflation higher. But it also said the government should continue to search for efficiencies. In its annual report, the FPP said the economy contracted by 8.7% last year, with the finance sector seeing falling profits "due to the low interest rate environment". Non-finance sectors, particularly hospitality, struggled with the impact of the coronavirus pandemic, it said. 'Face of uncertainty' The panel said the economy was "recovering, but is still weakened and the outlook remains unclear". It said: "Whilst [the] economy is recovering, but is still weakened, revenue raising steps, including higher taxes, impose a burden and would not be appropriate at present." It also said that "in the face of uncertainty, prudent uses of Jersey's funds will be important" and any fiscal deficits from temporary economic distress should be "financed by borrowing rather than drawing down the strategic reserve". It said efficiencies "should be sought regardless of the state of the economic cycle and the government should continue to search for efficiencies in future years". In September, a spending plan was outlined by ministers to "invest in Jersey's future". The Government Plan for 2022-2025 sets out a programme "for recovery and renewal", describing how the States could tax people more and make savings on investments. As part of proposed changes to the budget, income tax allowances, plus alcohol, fuel and vehicle emissions duty, could all increase. The plans are due to be debated on 14 December. line Follow BBC Jersey on Twitter and Facebook. Send your story ideas to channel.islands@bbc.co.uk. More on this story * Spending plan announced 'for Jersey's future' Published 21 September 2021 * Quarter of Jersey jobs 'obsolete within 15 years' Published 7 July 2021 * Budget deficit reaches £24m due to pandemic Published 20 May 2021 Related Internet Links * Government of Jersey The BBC is not responsible for the content of external sites. Related Topics * Inflation * States of Jersey From other local news sites * Firm agrees not to operate in Jersey for ten-year period External Jersey Evening Post * Liberation Group shortlisted in Publican Awards External Bailiwick Express * Condor may add new conventional ferry to fleet External Jersey Evening Post * New legal aid system 'could harm access to justice' External Bailiwick Express Information about BBC links to other news sites Top Stories * Tsunami hits Tonga after giant volcano eruption Published 1 hour ago * Djokovic detained ahead of Australian visa appeal Published 7 hours ago * Lead or step aside, senior Tory tells Johnson Published 1 hour ago Features * Ruthless royals move to limit Andrew damage Prince Andrew * What's UK PM to do when kids joke about his future? Prime Minister Boris Johnson leaves 10 Downing Street, London, to attend Prime Minister's Questions, 12 January 2022 * Is the pandemic entering its endgame? people walking into the sunset * * Kazakhstan: Who sparked deadly violence? VideoKazakhstan: Who sparked deadly violence? Bereaved woman in Kazakhstan * Families' quest for hope years after air disaster Search and rescue team search for human remains amongst the wreckages of a Malaysia Airlines Boeing 777 * The world this week in pictures Women in traditional kimono visit Senso-ji temple in Tokyo, Japan, to celebrate Seijin no Hi (Coming of Age Day) on 10 January 2022 * How a colossal block of ice became an obsession Kevin Eason * Omega Mart: Where art meets escape room. VideoOmega Mart: Where art meets escape room Chris Fox in the Omega Mart * Egypt's 'most exciting' archaeological discovery in decades A person holds an unearthed pot at the site of the 'Lost Golden City', Egypt Elsewhere on the BBC * Body transformations kept strictly undercover... Can they keep their progress hidden from their loved ones? Secret Body * Why do good cops go bad? Uncovering the story of one of America's most corrupt police units Bad Cops Most Read * 1Tsunami hits Tonga after giant volcano eruption * 2Lead or step aside, senior Tory tells Johnson * 3Djokovic detained ahead of Australian visa appeal * 4What's a PM to do when even kids joke about his future? * 5Ruthless royals move to limit Andrew damage * 6Canadian doctor delivers 'Miracle' baby on flight * 7US warns of Russian 'false-flag' Ukraine operation * 8Testimony sought from Andrew's former assistant * 9Baldwin hands phone to Rust shooting investigators * 10Jailed 'Pharma Bro' ordered to repay $64m BBC News Services * On your mobile * On smart speakers * Get news alerts * Contact BBC News * Home * News * Sport * Reel * Worklife * Travel * Future * Culture * Music * TV * Weather * Sounds * Terms of Use * About the BBC * Privacy Policy * Cookies * Accessibility Help * Parental Guidance * Contact the BBC * Get Personalised Newsletters * Why you can trust the BBC * Advertise with us * AdChoices / Do Not Sell My Info © 2022 BBC. The BBC is not responsible for the content of external sites. Read about our approach to external linking.