Island firms warn red tape and public spending are hurting confidence

Businesses in Jersey say excessive red tape and rising public sector spending are their biggest economic worries, according to new research by the Institute of Directors.

A survey of business leaders found confidence remains low, with 63% pessimistic about the economy and just 17% optimistic. Concerns include weak economic conditions, labour costs, difficulties recruiting skilled staff and uncertainty over government investment plans.

In St Helier, jeweller Richard Blampied said government spending and regulation were holding the island back. He called for “tough and unpopular decisions”, adding that the size, cost and pensions of the civil service were “not reasonable” compared with the private sector. Cutting red tape, he said, would make it easier for young people to start businesses.

Similar views were expressed by restaurateur Debbie Vautier, who said regulatory hurdles meant it took longer than expected to open her bistro, Blakes. While she would welcome fewer barriers, she said she did not expect change any time soon.

The concerns come amid warnings from the Fiscal Policy Panel that the government is spending more than it earns. Deputy Max Andrews, who voted against the 2026 budget, said recent increases in government expenditure contradicted repeated pledges to curb public sector growth.

Chief Minister Deputy Lyndon Farnham rejected claims the island’s finances were in poor shape, saying Jersey remained in a “good balanced position” with growing revenues, strong reserves and efforts under way to slow spending growth. He added that global uncertainty was weighing on economic confidence locally.