The Jersey government has confirmed a £400,000 reduction in funding to Jersey Finance, the organization responsible for promoting the island as a global financial hub. This forms part of broader budget cuts aimed at reducing non-frontline spending.
Deputy Ian Gorst, the External Relations Minister responsible for financial services, informed the Economic and International Affairs Scrutiny Panel that his department would need to find total savings of £700,000. Of this, £400,000 will come from Jersey Finance’s 2025 budget.
Jersey Finance, which received £6.4 million in government funding last year, relies on government support for 83% of its budget, with the remainder sourced from local financial firms.
Deputy Gorst acknowledged the challenging decision but noted it was part of the government’s efforts to curb spending under Chief Minister Lyndon Farnham’s directive. This includes broader departmental restructuring and cuts, such as a 20% reduction in projected growth figures and pay awards, as well as staff reductions within the financial services and financial crime policy teams.
Other cost-saving measures include not renewing contracts for two fixed-term staff in the Financial Crime Strategy Team following Jersey’s successful Moneyval compliance assessment and cuts to the Brussels office due to internal restructuring.
These changes reflect the government’s broader strategy to reduce spending across non-essential areas while maintaining essential services and compliance with international financial standards.
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