The Channel Island of Jersey is responsible for inward
investment of almost £500 billion into the United Kingdom and
supports around 180,000 jobs, according to a report published
yesterday by the independent firm, Capital Economics.
The new work comes at a time of increasing focus on the
relationship between the UK, which through the City of London is
the world's leading finance centre, and the so-called Crown
Dependency islands of Jersey, Guernsey and the Isle of Man, all of
which offer sophisticated international financial services across a
range of banking, fund, private wealth and capital market
The report, entitled 'Jersey's Value to Britain',
provides the most comprehensive analysis to date of the
relationship between Jersey's economy and that of the UK.
Key findings include:
Jersey is a conduit for almost £500 billion of foreign
investment into the UK, comprising 5% of the entire stock of
£1 in every £20 of money invested by foreign
individuals and companies in assets located in Britain reaches the
UK via Jersey.
Each year, Jersey banks send around £120 billion of their
deposits to parent operations in the UK, representing 1.5% of the
funding of the whole UK banking system.
UK net tax receipts generated by the activities of Jersey are
around £2.3 billion a year.
Two-fifths of all assets administered or managed across
Jersey's financial and wealth management sectors come from
markets outside the UK and EU.
Jersey's practitioners assert that four-fifths of the
wealth they manage would be lost to the sterling zone in the
absence of Jersey – together with Guernsey and the Isle of
Geoff Cook, CEO of Jersey Finance, said:
"This new work powerfully demonstrates the substantial
contribution made by Jersey to the United Kingdom. We have always
understood that our activity here in Jersey delivers a net benefit
to the UK, but it is now clear from the data in this report that
Jersey makes a substantial contribution to the British economy,
facilitating huge amounts of foreign investment, providing billions
in vital liquidity to the UK banking system and supporting many
tens of thousands of jobs.
In addition, the report demonstrates the truly international
nature of Jersey's finance industry, with global capital
flowing to the UK from some of the largest, and fastest growing,
markets in the world."
Senator Philip Ozouf, Treasury and Resources Minister, States of
"This report powerfully illustrates the interdependent and
mutually beneficial relationship between Jersey and the UK. In
recent months we have taken significant steps to advance our shared
agenda around zero tolerance of tax evasion and a commitment to
transparency. This independent report goes further in quantifying
also the benefit to the UK of a well-regulated offshore centre in
bringing global investment to UK business, infrastructure and the
City of London."
Mark Pragnell of Capital Economics and principal author of the
"This work goes further than any previous study and,
importantly, provides a comprehensive review of the sources and
uses of assets administered or managed in Jersey. The island is a
catalyst for employment and economic activity in the United
Kingdom, which itself generates revenues for the British
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