TAX receipts for last year are more than expected, but the credit crunch is going to bite hard into States income over the next few years, Treasury Minister Philip Ozouf has warned.
In a speech to the Personal Finance Society at the Pomme d’Or yesterday, Senator Ozouf said that the 2008 accounts looked likely to show an increase in tax receipts beyond last year’s predictions. But that increase, which the Senator would not reveal, will be exceeded by the fall in revenue over the next two years.
In his speech yesterday, the Senator said: ‘The 2008 States of Jersey accounts are not finalised, but I can say that I have seen some early drafts, subject to audit. The good news is that tax receipts show a further improvement on the original estimate that we had towards the end of last year. Not only do we have £140m available in the Strategic Reserve Fund, but we also have a healthy surplus in our “current account”. In addition, we have half a billion in the Strategic Reserve.’
Yesterday, the JEP reported that senior finance industry and States figures had said privately that the damage over the next two years could be more than £50m. Senator Ozouf refused to discuss the precise figures, but said that the receipts were going to fall.
Pictured: Senator Ozouf told his audience that the Island was facing ‘difficult short-term economic challenges’
