CHANGES to pensions legislation announced in the States Budget have been broadly welcomed by Island accountants.

But the accountants also say that because the Budget is based on projections of economic growth — albeit lower than in 2007 — it could be overtaken by the global slowdown.

And new rental charges to be levied on non-Jersey businesses could result in higher prices for consumers, they warn, and could possibly deter such businesses from staying or setting up in the Island.

Wendy Dorman, head of tax at PricewaterhouseCoopers in Jersey, said that there was concern that the Budget could be out of line with recent rapid changes in economic circumstances. ‘Three months ago this was absolutely where we should be. The slight worry now is that projections of even modest growth might not turn out to be so balanced. All we can do is keep wage costs from spiralling out of control and hope that Jersey will be better positioned than countries that are in debt. Jersey does not have any massive borrowings, and it does have the stragegic reserve and stabilisation fund in place,’ she said.
‘The risk is that we shall be blown off course by the fallout from the credit crunch.’

Pictured: Wendy Dorman