Friday 31st January 2025
The Jersey Chamber Weekly Update
Dear Subscriber,
Big freeze or squeeze
As we calmly slip out of January… or more likely as we stagger, slightly punch-drunk from a dry-January that was at full tilt, into the unknowns of February… we can agree that whilst it's not been the greatest month weather-wise, it's hardly been the big freeze. Still, it's not over till fat February sings.
And continuing in that cheerful tone, I'm a little concerned with a big squeeze than freeze.
Following the grown-up conversations from our Chamber lunch last week with the CEO of Govt of Jersey, where the thinking was over-regulation and under-investment, we have a well-intentioned increase to Employment Tribunal Awards, that will move the maximum awards again for businesses from £10k to £50k.
To be clear, any business failing to uphold employment law on discrimination needs training and should rightly be held accountable, with appropriate compensation awarded to those affected.
It's what's missing in this proposition, up for debate next week, that is really grinding the gears for many businesses. There is still no protection for the employer against malicious or vexatious claims. It costs lots, whether you defend a claim or not.
We understand those who rightly opted to defer social security contributions and GST payments during COVID, should now be at the stage of paying back or agreeing a payment plan with the Treasury Department.
This was always the case and should be repaid. We are genuinely grateful to the department for assuring us that they are applying a light and empathetic touch to those businesses who need to start repaying. But repay they must.
Just a reminder, and of little comfort to those still experiencing a slow or complete halt in trading during these dark winter months, but the new minimum wage rises to £13 in two months. Around the same time, a proposed 'flat rate' for freight could be introduced, which may inflate prices and significantly reduce profit margins. That's something that we are currently trying to address.
It's not easy running a business in Jersey, and over the coming months the support of the local spend from both government and islanders will be crucial, along with some meaningful listening. No one is going to continue doing something that becomes too hard to do with little or no profit.
Jersey clearly has plenty of pressures, but I believe it is also well positioned, and has the resources and resolve to survive and thrive.
And if you need light at the end of the (currently closed every night) tunnel, compared with Jan 1st, as of today we have 1 hour and 6 minute more daylight.
Enjoy it this weekend.
Have a great weekend
Murray,