Reassurance over recession threat

Markets reacted badly to problems at a major US bank

Jersey States would try to cut spending on public projects rather than raise taxes if a recession threatened the economy, a senior politician has said.

The Treasury and Resources Minister said the island would be affected in the same way as anywhere else in the world if a recession hit.

But Terry le Sueur said Jersey had money saved for emergencies.

If things became difficult, he said the priority would be to cut spending rather than taxing people more.

Worldwide money markets have recently recorded heavy losses amid growing fears of a global credit crunch.