Jersey Infrastructure Levy (JIL) Update

Wednesday 18 October 16:26

Jersey Infrastructure Levy Consultation Report and Next Steps

The Minister for the Environment first introduced the possibility of introducing a development in Jersey to fund community investment in the early part of 2016. A huge amount of work has been undertaken since then by all involved to explore in detail how it might work and the Minister would like to thank you for your contribution to this process.

One of his key directives in considering if a levy would work in Jersey was around the concept of viability, to ensure that any levy proposal did not undermine the development process and ultimately the policies of the Island Plan. This work is a core part of the evidence base and moreover the consultants were directed to adopt a cautious and conservative approach in their assumptions.

The published viability report, based upon Jersey specific costs and values, demonstrated that it is viable to introduce a low, broad, charge in Jersey which could operate without affecting the supply of development. This assertion has now been extensively tested through informal and the subsequent formal public consultation process and the Minister has now reviewed all of the comments.

It is clear that the development industry does not support the principle of the levy and dispute some of the viability conclusions that support it. Whilst some direct alternative evidence (notably the Lichfields Report) challenged some of the detailed assumptions made in the viability assessment for review of developer contributions report, the Minister does not consider that any new evidence has emerged to demonstrate that a levy would be unviable in Jersey. Equally it is clear that there are alternative views from community groups and individuals who have responded more positively to this consultation that also needs to be considered. The Minister’s full response to the consultation can be found in the attached report.

The Minister has therefore concluded that the outcome of this consultation provides a sound basis for taking an “in principle” proposition to the States to seek the Assembly’s approval for introducing an infrastructure levy in Jersey and, if supported, to subsequently develop a new law, policy and regulations, which would be subject to further scrutiny and review. Accordingly the Minister has lodged a Report and Proposition with the States Assembly and it is hoped that the in-principle levy proposal will be debated before the end of the year.

Next steps and timetable

If the States Assembly supports the in principle introduction of a Jersey Infrastructure Levy, further work will then begin on the development of legislation, regulation and policy to enable the implementation of the levy. This work would be undertaken during 2018.

New legislation is required for JIL to take effect in Jersey. This would remain to be the subject of approval by the States Assembly. It is envisaged that this might take place during Q4 2018/ Q1 2019.

The setting of an infrastructure levy rate will likely be the subject of independent professional scrutiny, probably by a planning inspector, during some form of public inquiry. It is only once the JIL had been reviewed and set, following independent scrutiny and review, would it take effect, likely sometime in the second half of 2019.

I would thank you once again for your involvement to date and look forward to further engagement and discussion as the project develops.

Kind Regards,

Ralph Buchholz | Principal Planner
Environment Department | South hill | St Helier | Jersey | JE2 4US

 

Click HERE to read the Minister’s Response to Consultation

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