Budget for low and middle incomes

Jersey's Treasury Minister has outlined his 2009 budget proposals, which include measures to cut the cost of living and help first time buyers.

Senator Terry Le Sueur plans to freeze the duty on petrol, following the rise in fuel and food costs.

He is also suggesting removing stamp duty for first-time buyers on properties up to £300,000.

The States are being asked to approve tax revenues of more than £589m and welfare funding of £5.8m.

We've targeted those on low and middle incomes Senator Terry Le Sueur, Treasury Minister

Senator Le Sueur also wants to encourage people to save for their retirement by raising the level of pension contributions eligible for tax relief.

Under the plans, stamp duty for first-time buyers on homes between £300,000 and £400,0000 would be discounted.

But the cost of non-essential items would rise, with the price of a litre of spirits increasing by 49p, a bottle of wine by 6p and a packet of 20 cigarettes by 18p.

The Senator said: "My overriding objective is to have the island with balanced budgets for the coming five years.

"There's a limit to how much one can give away and equally a limit to how much one would want to spend or tax.

"Where we have been able to spend some money we've targeted those on low and middle incomes."