Select a region
It was Backbenchers 1 – Ministers 0 after the first round of the Government Plan debate in the States Assembly this morning.
The opening Scrutiny-proposed amendment to the plan – calling for extra stamp duty to be levied on buy-to-let property purchases, to be introduced no later than the end of next year – was approved by 38 votes to 11.
Ministers said they did not object to the principle of the amendment but argued that there would not be enough time in 2022 to properly consult with the public and industry, and prioritising this proposal would disrupt a wider review – already in train – into stamp duty.
However, many backbenchers agreed with the amendment’s proposer, Corporate Services Scrutiny Panel Chair Senator Kristina Moore, who said that the public wanted to see action now to alleviate the housing crisis and this was a small but significant step in the right direction.
Its acceptance means that people buying a buy-to-let, second or holiday home from whenever the tax rules are changed will pay a higher rate of stamp duty, possibly 2% more, but the exact rate is yet to be decided.
This is designed to discourage these purchases, making more properties available for first-time buyers and others intending to live in the home they’ve just bought.
Treasury Minister Susie Pinel had lodged a counter-amendment, making any changes subject to the findings of the wider stamp-duty review, but this was rejected, with Members accusing the Government of “kicking the can down the road”.
Chief Minister Senator John Le Fondré did reveal to Members that he would be shortly signing an order ending share transfer in Jersey – the ability to purchase properties by buying shares in a company.
After this amendment was approved, Members moved on to the next one: a proposal by the same panel to apply a 2.5% duty increase on all alcoholic drinks rather than the measures proposed by the plan: a duty freeze on beer and cider but a 5% increase on wine and spirits.
That debate will continue into this afternoon.
Earlier this morning, Deputy Pinel opened the Government Plan debate, one of the key entries in Jersey’s political calendar.
She said: “While we are still feeling the effects of the Covid 19 pandemic as individuals, within our community and as a government, we are focusing on recovery and renewal for Islanders and our economy, by outlining a plan for the long-term sustainability of Government finances.
“This plan, which as well as covering areas for investment, also looks at how we use our balance sheet to secure the future financial sustainability of the island, including the borrowing we’ll need to fund Our Hospital and the costs of the pandemic.
“It also takes action to save taxpayers money on the repayment of our existing pension liabilities and addresses legacy issues inherited by this Government.”
26 amendments have been lodged, 13 of which have been accepted by ministers, meaning they are incorporated into the plan and not debated.
Follow Express for updates ...
AMENDMENTS: The 26 spending battles being fought this week
SCRUTINY'S VIEW: Flurry of recommendations issued before Gov Plan debate kicks off
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.