States spending to be slashed

Treasury Minister Philip Ozouf

UNPRECEDENTED spending cuts were signalled today as ministers announced ambitious plans to cut States spending by £50 million a year from 2012.
The Council of Ministers said that there would also be tax increases, new charges for States services, an efficiency drive and a review of which services were not absolutely necessary in the coming years to fill a year-on-year deficit.
And they say that savings will fund not just the deficit, but any upfront investment necessary to make efficiencies, a contingency fund for unforeseen expenses and the necessary growth in essential services like care for the elderly.
The details of the comprehensive spending review process were agreed at a Council of Ministers ‘away day’ meeting at Highlands College on Thursday.
Treasury Minister Philip Ozouf – who is deputising for the absent Chief Minister Terry Le Sueur – said, however, that although decisive action would be taken, Islanders could feel confident about the state of Jersey’s finances (from BBC)