Budget savings urged to prepare for 'stormy' economy

A panel of economic experts has warned that Jersey's government needs to make savings on its budget, to stop it from using its existing reserves to fund projects.

The Fiscal Policy Panel looks at the island's finances, and makes recommendations to ministers and has warned about preparing for "potentially stormy weather".

In its latest report, it said that essential savings pots had been allowed to run down, and that they were not as substantial as they should be.

In a statement, Chief Minister, Senator Lyndon Farnham said: "It is vital that we continue to protect our strong financial position.

"Significant actions have already been taken to secure the Island's public finances and this area remains a high priority for our Government."

The Minister for Treasury and Resources, Senator Alan Maclean said: "I would like to thank the Panel for their report and for recognising the positive steps we are taking to strengthen Jersey's public finances.

"This Government is committed to improving the Island's financial stability and increasing fiscal resilience to ensure Islanders are well protected against any future economic challenges."

Sir Jon Cunliffe CB, the panel's chairman, said the island needs to take a careful look at how resilient Jersey's economy is.

"The strategic reserve is still a long way below where the panel thinks it needs to be.

"Just to say the reason we think it needs them is because Jersey doesn't have its own currency, doesn't have its own central bank, it doesn't have the ability to raise taxes.

"So if Jersey hits stormy weather, and there is potentially stormy weather out there, then that strategic reserve is really Jersey's insurance policy and on our calculations more needs to go in.

"But some progress has been made this year which we welcome."

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