UK ‘could learn’ from Jersey

Thursday 14th May 2009, 3:00PM BST.

David Frost. Picture by David Ferguson (00690975)

The UK could learn a great deal from Island principles and practices, according to the British Chamber of Commerce director general.

David Frost, the guest speaker at yesterday’s Jersey Chamber of Commerce annual general meeting lunch, and whose address was entitled ‘The role of business in leading the economy out of recession’, said that he admired Jersey’s low-tax strategy.

He believes that, ideally, the British government should follow Jersey’s example but he is all too aware that present trends are in the opposite direction.

‘The UK’s 50p tax rate for high earners was a very bad move,’ he said. ‘It sends out all the wrong messages.’

The same, he said, applied to planned increases in national insurance rates, which in his view will run counter to the need to encourage entrepreneurial drive.

Read the full story in the Jersey Evening Post.

Click here for subscription details.

Individual editions are also available online.

1
Marx

May 15, 2009 at 11:30 am

Obviously a Tory….

Report abuse
2
Pip Clement

May 15, 2009 at 1:39 pm

Maybe someone should have pointed out that the UK maintains substantial defence forces suitable for a large European power.
This includes a medium sized professional army, a blue water capable fleet, a modern airforce and a nuclear deterrent.
It also has a large university system, teaching hospitals etc.
Jersey has none of these and if the island was paying a proportional part of the UK’s expenditure we would be writing a cheque for seveeral tens of millions a year.
Jersey has a low tax strategy and very good services but we do not have the costs of a larger state.

Report abuse
3
jb

May 18, 2009 at 4:34 pm

Hmm… maybe he’s right. Lets introduce housing regs over here in England. That’s forward looking.

Report abuse
4
James Deale

May 21, 2009 at 10:54 am

Yep, he’s right. The UK would be much better positioned if they relied on one industry for income and positioned themselves well to screw up their welfare system.

Report abuse
5
Lorna Hamilton

May 21, 2009 at 11:50 am

I’m pretty sure having to pay up front to register as self-employed (i.e. before you do the work to find out if you can make money from it) also goes against entrepreneurial drive, probably moreso than increasing NI contributions. At least in the UK you can try it out, see how you go for a few months before having to register.

Report abuse
6
joker

May 21, 2009 at 4:04 pm

PiP Clement,

Jersey has its financial disadvantages being a sovereign Island. We cannot take advantage of economies of scale, we don’t control interest rates or other fiscal tools. We have zero bargaining power – we suffer costs of importing everything including energy and the government still have to run all the basic services the UK do (airport, harbour, hospital, schools etc) and more as we cannot simply ‘share’ another councils equipment. Our uni students are charged overseas fees. Treating rubbish is far more expensive as we can’t simply land fill. We pay over £1m every year for a TA. By comparison we pour loads more money into coastal defence systems. We have more heritage sites per head of population that need funding. So whilst I agree that the UK has a higher proportion of spend per head I don’t think the gap is as big as you make it out to be.

Report abuse
7
PIp Clement

May 22, 2009 at 2:00 am

Hi Joker,

I cannot see that Jersey is remotely a sovereign island or territory.
We have no control of our currency, interest or exchange rates. Responsibility for defence and foreign policy rests with the UK.
And that is just the broader aspects of government.
There have been several serious cases facing the Jersey justice system over the years eg the Newell murders and the Haut de Garenne investigation and Home Office experts and UK police officers have been bought in to help at an early stage in the investigation to name just one example.
Like you say we ‘cannot just share another council’s equipment’ probably sums up the Jersey position, an isolated county council with pretensions!

Report abuse
8
joker

May 22, 2009 at 11:49 am

OK Pip C…

So you highlighted the fact, and have gone into some detail to explain why I have incorrectly described Jersey as a sovereign nation but you haven’t made any counter on the main point of my last post which was to disagree with you that Jersey doesn’t suffer expenditure pressures like the UK. Actually you have kind of agreed with me by reiterating that Jersey has currently no control over its currency or interest rates etc thereby lacking a number of fiscal options the UK enjoys. As for Defence – yes the UK is responsible but we still pay them a hefty fee for it.

Report abuse