Jersey budget proposes tobacco and alcohol duty hikes

Duties on cigarettes and spirits will rise by 10% from 1 January, if proposals by Jersey's Treasury and Resources are approved by the States. In its draft budget, to be debated on 4 December, the department said the tobacco increase would raise £1.2m. The rise would put 38p on a packet of 20 cigarettes and £1.05 on a litre of spirits, while strong beer (more than 4.9% ABV) would be 4p more per pint. 

The department will also ask the States to approve £56.1m for capital projects. Treasury and Resources Minister Philip Ozouf described it as "one of the biggest capital spending programmes ever undertaken in Jersey". The investment forms part of the Medium Term Financial Plan due to be debated by the States. Senator Ozouf said a recommendation, by the independent Fiscal Policy Panel, to accelerate capital investment in the short term, had been considered but was rejected.

He said: "Based on current forecasts there is insufficient funding in 2013 to achieve that." The biggest capital outlay proposed for 2013 is £18.8m for an ongoing social housing programme. The replacement of St Martin's School contributes to a proposed £8.7m allocation for Education, Sport and Culture capital projects.