Capital Economics has just published a report analysing the relationship between Jersey’s economy and that of the UK.
This independent report clearly shows the substantial contribution that Jersey makes to the UK’s economy. Amongst other key findings, the report draws attention to the following interesting points:
- Jersey runs £1/2 billion trade surplus with global exports
- More than 100,000 jobs in Britain are supported by Jersey
- £118 billion of the UK banks’ funding comes from Jersey
- £1/2 trillion of foreign investment in the UK comes via Jersey
- More British tax is generated by Jersey than is lost through it
Although some people think that foreign investment and bank funding currently routed through the islands would come directly to the United Kingdom if the Crown Dependencies did not exist, the report summary contradicts this assumption. The authors make the point that “The wide geographical spread of Jersey’s client base means that it is attracting investment from businesses and individuals who wouldn’t necessarily see the City of London as their first choice of financial centre. Around 30 per cent of the investment through Jersey originates from outside the London time zone, and would more likely have a focus around New York, Hong Kong or Dubai; this alone is worth an estimated 51,000 British jobs. Moreover, the results of our survey indicate that 84 per cent of the bailiwick’s financial services business would be at risk of leaving the sterling zone if Jersey did not exist. This business (and the consequent investment) is likely to migrate to other offshore centres – and not London, and could cost the equivalent of around 150,000 British jobs.”
Click here to read the summary report which makes interesting reading for those who doubt how valuable the Crown Dependencies are to the UK.