Jersey and the UK

It’s no secret that balancing economic growth with stability has been a particular focus for the UK over recent months. In fact, the UK has experienced slow growth for a number of years, with GDP rising by 1.3% in 2025 and just 1.1% the year before.

The UK Chancellor’s Spring Statement last month, for example, was a muted affair, including downgraded growth forecasts without any major new tax or spending measures. Meanwhile, this year also marks 10 years since the Brexit referendum, and Chancellor Rachel Reeves continues to make the case for a reset of the UK’s relationship with Europe to try and stimulate growth.

And now energy prices, driven up by the war in Iran, are looking to dampen forecasts further. Oxford Economics predict that the UK economy is set to grow this year by half as much as previously thought, revising its forecast down to 0.4%. As a result, UK Prime Minister Sir Keir Starmer has unsurprisingly hinted at plans to shield the UK economy from as much impact as possible by developing new policies.

Against that backdrop, it was interesting that earlier this year, TheCityUK published two significant reports.

One, ‘No time to lose’, was a landmark report setting out the actions needed for the UK to lead in the next era of global finance – actions that could see the industry grow and generate an additional £53 billion in annual economic output by 2035.

And a second one on the importance of the Channel Islands to UK economic prosperity. Its findings reaffirm that the Channel Islands are not peripheral players but essential contributors to the UK’s economic resilience, competitiveness and global reach. Jersey in particular serves as a gateway for almost £500 billion of foreign investment into the UK, with this investment supporting 951,000 jobs and £62 billion in UK GDP, annually.

But we should not be shy of this fact or take it for granted. Because the difference Jersey can make, as the data shows, is significant. We know, for instance, that Jersey as an IFC helps manage in excess of £1.4 trillion of global assets, supporting £170.3 billion of global economic output each year – roughly equivalent to the direct GDP contribution of New Zealand.

And more widely, bilateral trade between Jersey and the UK reached £7.9 billion in the year to Q3 2025.

These are not abstract figures. They represent access to significant pools of global capital and investment into infrastructure, housing, renewable energy and high-growth businesses across the UK economy. It’s an illustration of a relationship defined not just by proximity but by deep economic interdependence.

There are a number of reasons as to why this relationship is so effective.

First, in a world where investors, both in the UK and globally, are increasingly sensitive to political and regulatory risk, Jersey’s consistency, strong rule of law and adherence to global standards offer a level of certainty that is highly valued.

In addition, Jersey’s tax-neutral environment ensures that capital flows efficiently without unnecessary friction.

Jersey’s legal and regulatory frameworks are also closely aligned with those of the UK, making it immediately familiar to international investors and UK counterparties alike. In particular, Jersey companies are frequently used as listing vehicles on the London Stock Exchange.

Significantly, the importance of the relationship between Jersey and the UK is something that comes across strongly in the newly published ‘Time to Win’ strategy by the Government of Jersey. Emerging from its ‘Financial Services Competitiveness Programme’, it’s an important piece of work that seeks to support long-term growth in Jersey’s financial and related professional services sector, drawing on our Island’s agility and reinforcing our growth mindset as an IFC.

Notably, it highlights that working with UK asset managers and intermediaries is critical as part of our efforts to assert Jersey as a specialist jurisdiction for alternative investment vehicles marketed outside the EU. It also talks about how vital our connectivity with London is.

As Jersey embraces this appetite for growth off the back of this strategy, and as the UK continues to address its economic challenges and position itself as a global hub for financial services, there’s no doubt that the partnership between Jersey and the UK will grow in tandem.

We’ll see that in different ways – a greater focus on collaboration between Jersey and the British Business Bank, for example, has the potential to bring about numerous opportunities both for Jersey’s finance industry and the UK.