The Channel Island of Jersey is responsible for inward investment of almost £500 billion ($758.1 billion) into the UK and supports around 180,000 jobs, claims a report produced by Capital Economics.
The study commissioned by Jersey Finance dismissed the assertion that the jobs would exist anyway if Jersey didn’t operate as an offshore financial centre.
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The report added that nearly 150,000 of those jobs would relocate to elsewhere in the world if Jersey didn’t do the business it does with the UK.
The report, entitled ‘Jersey’s Value to Britain’, also claims that that £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, the report revealed.
The report added that the 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.
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By GlobalDataThe report also warns that the four-fifths of the wealth managed by Jersey’s practitioners would be lost to the sterling zone in the absence of Jersey, together with Guernsey and the Isle of Man.
Geoff Cook, CEO of Jersey Finance, said the report showed the island made a "substantial contribution" to the UK.
"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," he said.
