Finance firm backs the Budget

Tuesday 26th October 2010, 3:01PM BST.

Treasury Minister Philip Ozouf outlined the Budget proposals at a meeting at the Town Hall

FINANCE firm Ernst & Young have welcomed the Budget and urged States Members to heed the central message about controlling spending.

But while the firm welcomed the decision to leave the 20% rate of income tax alone and the proposal to raise GST to 5%, they have sounded a warning note about the 2% Social Security charge on earnings over £44,232, describing it as ‘a jobs tax’.

The firm’s Jersey tax director, Gary Todd, said that the extra Social Security charge – worth around £16m a year from the start of 2012 – would not be welcomed by businesses struggling to turn the corner after the recession.

He added that businesses and the public would accept the £50m worth of tax increases proposed only if it was clear that there was also pressure being applied to spending.

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