Multi-million pound investment in Jersey businesses announced

Business investment and support schemes worth a total of £30 million have been announced.

The schemes are:
• a package of financial support measures worth £20 million to help employers improve productivity and adjust to a higher minimum wage
• The Agricultural Loans Fund, which has been established with £10 million and reopened for applications
• The Impact Jersey CX Tech Programme, which will offer up to £500,000 in match funding to improve customer experience in Jersey

The Minister for Sustainable Economic Development, Deputy Kirsten Morel, said: “Through these schemes, we are helping Jersey businesses to invest in themselves and their employees.
“Jersey suffers from low levels of business investment – less than half of the UK level, which itself is the lowest level of any G7 nation. To achieve our ambition of becoming a high performing, environmentally sustainable and technologically advanced small island economy by 2040, we need to invest in change. We’re enabling Jersey businesses to access significant investment, and I’m confident that this will help stimulate the growth and improvement in productivity that we need.”

Better Business Support Package

This package has been introduced to help employers improve their productivity and competitiveness during the transition to a living wage, one of the Council of Ministers’ Common Strategic Priorities. The minimum wage will rise to £13 per hour from 1 April 2025 in preparation for April 2026, when the minimum wage will be set as two thirds of the 2024 median wage.

The package, which is subject to approval by the States Assembly as part of the Budget, includes the following per year in 2025 and 2026:
- £2.3m Productivity Grant - to help any employer invest in a product or process improvement
- £2m Skills Grant - to help any employer invest in apprentice and skills training
- £1.1m Rural and Marine Grant – top up funding to the existing rural and marine support schemes
- £1m Visitor Economy Development Grant – a productivity grant ring-fenced for visitor economy employers
- £2m Destination Marketing Grant – top up grant for Visit Jersey to increase tourism demand
- £1m Route Development Grant - a contract for Ports of Jersey to increase connectivity
- £0.3m Additional Employee Support – to support lower-income workers who have lived in Jersey less than five years
A small amount of the funding will also be used to support delivery, marketing of the schemes, and the development of an online portal to streamline the grant application process.
The application process will be announced following States approval, with the schemes open to all employers launching in early 2025 via Jersey Business.

The Chief Executive Officer of Jersey Business, Paul Murphy, said “We are delighted to be supporting this valuable programme of investment. These packages will enable businesses to access finance and capital through various grants, simplifying and supporting direct business investments. This will act as a catalyst to activate productivity gains relevant to all sectors, directly impacting business growth, resilience, and profits. Additionally, these investments will benefit people by engaging them in work that best utilises their skills and potential. We look forward to sharing more in the coming weeks on how this process will be enabled with a digital-first approach.”

The Government and arm’s length organisations will be working together with the business community to ensure that Jersey businesses are able to take advantage of the schemes.

Jersey Chamber of Commerce Chief Executive, Murray Norton, said: “Jersey Chamber has worked with the Government during the development of the new Business Support Schemes, include productivity improvement, skills grants, and funding for apprenticeships. These grants and incentives will offer some support during the transition to the new minimum wage and give businesses opportunities to enhance productivity. Chamber is pleased to now be working with Government and key stakeholders on the mechanics of the schemes and will be the host for breakfast briefings with the relevant stakeholders.”

The Jersey Hospitality Association Co-Chief Executive Officer, Marcus Calvani, said: “This targeted and substantial financial support is essential for our industry, especially as we navigate both the implementation of a new minimum wage and broader economic challenges. We are united and dedicated in our commitment to advancing the visitor economy strategy in the coming years, and this funding will play a crucial role in fostering growth not only to individual businesses but to the visitor economy as a whole.”

Agricultural Loans Scheme
The Agricultural Loans Scheme, which has been dormant since 2003, has now been re-established and £10m allocated to it. Applications for the first tranche of £3 million opened last Thursday, available to help agricultural businesses make long-term investments.

Deputy Morel said: “This was unanimously approved by the States last year, showing that there is support for the agriculture sector. These loans will make it easier for businesses in this important sector to develop, and continue to be the protectors of Jersey’s natural environment.”

The President of Jersey Farmers’ Union, Douglas Richardson, said: “I am pleased to see that the concerns of the farming industry have clearly been taken into account by the Council of Ministers with these proposals. Additional funding delivered under the Rural Support Scheme will help those rural businesses most impacted by the increase to the Minimum Wage. The reintroduction of the Agricultural Loans Scheme will greatly assist with much needed investment in our sector. These measures ensure we will continue to maintain a viable and sustainable farming sector as a vital part of Island life.”

CXTech Programme
The latest Impact Jersey grant programme, also launched last Thursday, is aimed at developing and deploying tech-driven solutions to enhance local customer experiences across Jersey’s retail, tourism, hospitality, and logistics sectors.
The CXTech Programme will offer up to £500,000 in match funding to innovators who have developed customer experience technology solutions with the aim of enhancing interactions, boosting productivity and improving operational efficiencies.

Tony Moretta, Digital Jersey’s CEO, said: "CXTech is designed to make a positive impact on the Island’s visitor and retail sectors, using technology to significantly transform customer experiences and combatting challenges we’re experiencing in Jersey, from increased logistics and freight costs to the fragmented digital interactions encountered when trying to access information.”

Better Business Support Package - Further Details

The schemes within the package have been designed to support improvements in productivity for all employers in Jersey whilst helping those sectors impacted most by the increase to the minimum wage. The impact of each scheme will be reviewed at the end of 2025 for improvements to be made for 2026.

Productivity, Skills and Visitor Economy Development Grants

Primary eligibility criteria for all applications:
• Business must be registered in Jersey and hold a business licence (includes charities who employ paid staff)
• Business must employ at least 1 person (owner/s + 1) for at least 3 months who are paid a minimum of £128 per week
• Business must be up to date with tax contributions or on a repayment plan

Secondary eligibility criteria for grant applications:
Each grant package can be applied to for either:
• Major Grants - £5000 to £75,000 - Business must have been operating for 18+ months
• Minor Grants - £1000 to £5000 - Business must have been operating for 6+ months
• [Apprenticeship Grants – A £2,000 grant per apprentice, per year will be treated as part of the Skills Grant package but with a separate approval process]
Project eligibility:
• Businesses may apply for one grant, per calendar year, per grant scheme that they are eligible for
• Grants must be for different projects that cannot have started before grant approval
• Grant projects must show a measurable benefit to one or more factors of productivity: input costs; process efficiency; output and revenue
• Grants are up to 50% of the project costs, the business must cover a minimum of 50%
Visitor Economy Development Grant – this ring-fenced package will be available to businesses that can be defined as part of the Visitor Economy which will be assessed during the application process.
 

Example I
A construction business operating for over 6 months but less than 18 months in 2025, can apply for up to £160k in total:
• 1 x £5k Productivity Grant with Project A in 2025
• 1 x £5k Skills Grant OR Apprenticeship Grants in 2025
• 1 x £75k Productivity Grant with Project B in 2026
• 1 x £75k Skills Grant OR Apprenticeship Grants in 2026

Example II
A hotel operating in the visitor economy for over 18 months can apply for up to £450k in total:
• 1 x £75k Productivity Grant with Project C in 2025
• 1 x £75k Visitor Economy Development Grant with Project D in 2025
• 1 x £75k Skills Grant OR Apprenticeship Grants in 2025
• 1 x £75k Productivity Grant with Project F in 2026
• 1 x £75k Visitor Economy Development Grant with Project G in 2026
• 1 x £75k Skills Grant OR Apprenticeship Grants in 2026

Jersey Business will deliver the above grants through a new online portal to streamline the application process for employers, ensure the security of the process, and assess the impact of each grant. Further details on the application process will be announced by the end of the year.

Destination Marketing
• Outline – a top up grant for Visit Jersey to boost their promotional activity of Jersey and measurably increase tourism to the Island
• Example – increased media activity (e.g. digital media adverts) and develop collaborations with third-party brands and distribution partners
Route Development
• Outline – a contract for Ports of Jersey to increase air connectivity
• Example – negotiating a new regular flight connection to a major European city over a multi-year period

Rural and Marine Grant Development
• Outline – a top up to the usual credit-based Support Schemes, targeted to businesses impacted most by the minimum wage increase
• Eligibility – employers who are part of the Rural and Marine Support schemes

Additional Employee Support
• Outline – support lower-income workers who have lived in Jersey less than five years
• Eligibility
• be aged 18 or over
• have been be resident in Jersey for less than 5 years
• have Control of Housing and Work Law ‘Registered’ status
• not live in a household that meets the residency condition for the Income Support scheme
• have contribution earnings declared in every month for Quarter C of 2024 i.e. July, August and September
• be resident in Jersey and have a Jersey or other accepted UK bank account in their own name

For further information, please contact Economy communications on 01534 444434 or [email protected]