Report: Jersey supports 250,000 UK jobs

Originally published on 19 October 2016

Jersey supports an estimated 250,000 British jobs and is a conduit for almost £500 billion of foreign investment into the country, according to a report into the jurisdiction’s value to the United Kingdom. In addition the island’s financial sector supports activity that generates around £5 billion in United Kingdom tax revenue each year, the report finds.

The figures demonstrate the important role that jurisdictions like Jersey – whose transparent, well-regulated financial regime facilitates capital flows around the world – bring to supporting the economy of the UK. They are contained in research from independent consultancy Capital Economics on Jersey’s Value to Britain, commissioned by Jersey Finance Limited.

Meanwhile, a separate report from Capital Economics, also launched today, outlines the value of Jersey to the rest of the European Union. The two reports are aimed at providing a comprehensive assessment of the impact of Jersey’s finance industry to the UK and the rest of the EU. The main points are:

  • Jersey supports an estimated 250,000 British jobs, of which 190,000 are from foreign investment alone
  • It adds £14 billion to the United Kingdom economy
  • Jersey is estimated to be a conduit for almost £500 billion of foreign investment into the United Kingdom, equivalent to 5% of the total stock of foreign owned assets in the country
  • Activity in Jersey generates around £5 billion in United Kingdom tax revenue per annum
  • Jersey’s banks provide 1.5% of the funding of the whole United Kingdom banking sector
  • In the rest of the whole EU, Jersey supports an estimated 88, 000 jobs thanks to investments made through the island
  • Jersey’s activities bring annual tax revenues to the rest of the EU countries total £0.8 (€1) billion

The Value to Britain report also reinforces how Jersey’s benefit to the UK far outweighs any potential costs in terms of foregone tax revenues to the country.

Geoff Cook, CEO of Jersey Finance, said: “Jersey is overwhelmingly of net positive value to the UK, providing vital liquidity and inward investment, and supporting many tens of thousands of jobs across the UK. Jersey has the flexibility and freedom to provide the taxation, regulatory and supervisory regimes required by clients with cross-border asset portfolios. The report’s findings also confirm what we have been saying for many years: that Jersey is not a tax haven. Our laws on money laundering, tax evasion, beneficial ownership of financial assets and exchanging information with enforcement authorities in other nations are robust and efficiently enforced.”

Mark Pragnell, Head of Commissioned Projects at Capital Economics, said: “Offshore centres have evolved to meet the needs of global businesses and internationally footloose individuals, and this demand looks set to grow. If Jersey and the other Crown Dependencies did not exist, the benefits they provide to the United Kingdom economy would be at risk – as much of the business currently there would likely migrate to other offshore centres in, say, the Caribbean, Middle East or Asia with established links to global financial centres other than London.”