Plans for a tax on new developments in Jersey have been rejected.
Politicians voted by 21 votes to 18 to throw out proposals for an ‘infrastructure levy’ which would see developers charged a fee, which would raise money to develop public space in St Helier.
Ahead of the debate, those who work in the construction industry raised a raft of concerns about it, including a warning from the Jersey Construction Council (JeCC) that the tax would lead to an increase in property prices.
The Chamber of Commerce said it would slow down development work and could instead lead to landowners holding on to their land, while a review of the Environment Department’s plans – commissioned by the JeCC and Jersey Farmers’ Union – described the idea as “fundamentally flawed”.
Before today’s vote, the Chief Officer of the Environment Department argued strongly for the introduction of the charge, saying: “The principle here is for community gain so I think we have to be absolutely demonstrating to the community what we received and what we spent it on.”
Today, Chamber described the vote’s outcome as “the right decision”.
