Procurement reform and stronger local supply chains to create jobs, grow our economy and island.
Jersey is a successful economy.
That success has not happened by accident.
Our finance industry has played a central role – generating a significant share of employment, tax revenue, and global connectivity for the island.
It is one of Jersey’s great strengths.
But strength in one part of the economy does not automatically create balance across the whole.
If we are serious about resilience, we need to ask a simple question:
How do we ensure more of the value created in Jersey stays in Jersey – and works for Islanders?
Backing island-based businesses is central to that answer.
The Problem
Three challenges are becoming increasingly clear:
• Too much economic value leaks off-island, through procurement, ownership structures, and supply chains
• Local businesses often struggle to scale, particularly in the face of higher costs and limited market size
• Public sector economic influence is not consistently aligned with local development
At the same time:
• public services are under pressure
• the cost of living remains high
• and economic resilience is becoming more important in an uncertain world
These issues are not a critique of success.
They are a consequence of an economy that has grown strongly in some areas, but less so in others.
A Clear Direction
Jersey does not need to choose between a strong finance sector and a strong local economy.
The two should reinforce each other.
The finance sector brings:
• capital
• expertise
• global reach
The local economy provides:
• resilience
• employment across the island
• and a broader base of opportunity
Backing island-based businesses is about complementing our existing strengths, not competing with them.
But it also requires a shift in mindset:
Every part of the public system – not just central government – plays a role in shaping the local economy.
Three Practical Mechanisms
1. Smarter Procurement Across the Whole Public System
Government is one of the largest purchasers of goods and services in Jersey – but it is not alone.
Arm’s-Length Bodies, States-Owned Entities, and public services collectively represent a major share of economic activity.
That purchasing power should be used more strategically across the system.
This means:
• breaking contracts into sizes that local firms can realistically bid for
• increasing the weighting of social and economic value in procurement decisions from 10% to 20%
• improving visibility of opportunities for local suppliers
This is not about excluding off-island providers.
It is about ensuring local businesses have a fair opportunity to compete and to grow.
2. Build Local Supply Chains Around Public Services and Infrastructure
Many of the services we have discussed – care, housing, infrastructure – rely on supply chains.
Too often, those supply chains extend off-island.
We should:
• actively develop local supply networks around key sectors
• support businesses that can provide goods and services locally
• encourage collaboration between firms to meet larger contracts
And critically:
This approach must be adopted consistently across government, ALBs, and States-Owned Entities.
Because taken together, they shape a significant share of demand in the island economy.
For example:
• care services supported by local providers
• construction linked to local labour and skills
• digital services developed through island-based capability
This strengthens both the economy and the resilience of public services.
3. Support Business Growth that Retains Value Locally
Not all growth is equal.
We should prioritise businesses that:
• employ Islanders
• invest locally
• and retain profits within the island economy
This means:
• targeted support through organisations such as Jersey Business, Digital Jersey and other organisations that have a ‘helicopter view’ of opportunities
• improved access to finance (which will link directly to the Jersey Bank proposal)
• creating clearer pathways for small businesses to scale
It also means recognising the role of:
Regulators and public bodies in shaping the business environment.
Proportionate, predictable regulation:
• supports innovation
• reduces barriers to entry
• and enables local businesses to grow with confidence
Over time, this builds a stronger base of locally rooted enterprises.
Further Measures
Alongside these core changes, we should also:
• Align economic development strategy with public service needs (e.g. care, digital, construction)
• Encourage collaboration between the finance sector and local businesses, particularly in investment and scaling
• Ensure ALBs and States-Owned Entities have clear expectations around supporting the local economy
• Support innovation in sectors linked to the Island of Longevity, including health and wellbeing
• Ensure workforce development aligns with local economic opportunities
This is about building an economy that is both globally connected and locally grounded.
Closing
Jersey’s finance industry has been a cornerstone of our success.
The task now is not to replace that success – but to build on it more deliberately, across the whole system.
If we continue as we are:
• value will continue to leak out
• local businesses will remain under pressure
• and resilience will be limited
If we act:
• more wealth stays in the island
• more businesses grow locally
• and the whole economy becomes more balanced and robust
This is the kind of practical reform I will argue for – ensuring that every part of the system plays its part in building a stronger island economy.
And I would genuinely welcome your view:
What would make the biggest difference to local businesses in Jersey today?
Contact me on bernardplace2026.com or bernardplace2026@gmail.com
