Cost of living

Opinion surveys show that the high cost of living is the issue that most concerns Islanders. This reflects the experience over the last two decades, when average living standards have hardly changed. The situation is not confined to Jersey; it applies equally in the UK and many other countries. In practice, the Island’s strong links with the UK mean that inflation in Jersey largely mirrors that in the UK. The recent conflict in the Middle East has increased the price of oil worldwide; the people of Jersey are adversely affected as are people in many other countries.

The high cost of living affects all people in Jersey, but some groups more than others. According to the Jersey Opinions and Lifestyle Survey Report 2025, the proportion of people who reported that they found it difficult to cope financially ranged from 69% for single parents to 44% for working age people living alone, 35% for couples with children, and 17% for pensioners.

It is tempting for politicians to suggest that they can reduce the cost of living or protect Islanders from the consequences of international developments. Such promises cannot be kept. Yes, it is possible to subsidise certain goods and services or to reduce GST or the duties on alcohol, tobacco and petrol. But all such measures have to be paid for, either by compensating tax increases or by higher inflation in the longer term. They do nothing to address the real problem.

This is not to say that in some circumstances targeted measures aimed at particular groups are not appropriate. Generally, income support and the community cost bonus help those who are most struggling to meet living costs. If there are gaps in the system or groups that are unexpectedly hit by rising living costs, then it is proper for short term targeted support to be considered.

Generally, however, the cost of living problem must be tackled by a combination of two policies:

• Reducing the cost of government to the people - both taxes and simply the cost of dealing with what at times seems a very bureaucratic organisation.

• Growing the economy, which helps to increase incomes and also tax revenue to pay for essential services.

My manifesto does not make promises that can't be delivered, but rather sets out a series of policies which together are capable of significantly easing cost of living pressures.