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2019 Budget: What does it mean for you?

2019 Budget: What does it mean for you?

Tuesday 09 October 2018

2019 Budget: What does it mean for you?

Tuesday 09 October 2018


Guernsey's budget for 2019 is out, with the usual "revenue raising measures", some gifts from the government for first time buyers, married couples and the wider community, and very few surprises other than that.

The island remains in the black with a "modest surplus" of £1million confirmed, which Deputy Gavin St Pier said should make us all proud.

"The key thing is that it's a balanced budget, and recognising that it's the second balanced budget in a row, after fully providing for capital spending, after complying with all our fiscal rules, after delivering against the medium term financial plan, to deliver a balanced budget after eight years of structural deficit, to deliver a balanced budget in an environment where virtually every other jurisdiction in the world runs a deficit, is a significant achievement and one of which Guernsey should be proud," he said.

2019 budget

Pictured: Some of the figures released as part of the 2019 Budget.

The Policy & Resources President said that's been achieved through years of financial discipline and planning, but that doesn't mean the budget for 2019 comes laden with financial gifts. 

"Financial discipline and planning: both are absolutely essential for a government and whilst unlikely to capture popular imagination, neither can be taken for granted.  Let’s not pretend it has been easy.  Imposing both on government has been met with both resistance and scepticism.  But now we can reap the rewards and be proud that our public finances have stabilised and improved whilst other jurisdictions continue to struggle.  That stability is vital as it allows the States to deliver the vital services on which we all rely."

The P&R President said his budget comes with "a number of positive measures aimed at easing the burden on islanders, replenishing the island’s reserves and community investment."

2019 budget

Pictured: Some of the measures in the 2019 budget include those above and below: 

  • Another £500 increase in personal tax allowances (up to £11,000 per person); benefitting low and middle income families the most, representing tax cuts of £600 for a couple and £300 for single people
  • Furthering the withdrawal of personal allowances for high earners, by lowering the withdrawal threshold to £100,000
  • Increasing the Income Tax cap 
  • Introducing a banded system of domestic TRP rates for larger properties
  • Introducing a new higher rate of commercial TRP for Accountants and Non Regulated Finance Services Businesses 
  • Extension of 10% rate of Corporate Income Tax to more businesses
  • Introducing a higher rate Document duty band for property conveyancing aimed at helping first time buyers in particular 
  • Fuel duty up 3.1p a litre
  • Tobacco duty up 7.4% for cigarettes, 7.9% for cigars and 9.9% for all other tobacco products - equal to 37p on 20 cigarettes
  • Alcohol duty up 5% on most products equal to 10p on a bottle of wine, 67p on a litre of spirits and up to 2.84 pence on a pint of beer
  • Alcohol duty on low strength beers and ciders produced by small independent brewers is cut to 50% of normal rates equal to a 14p cut

Deputy St Pier said some of the measures introduced "will directly benefit our community and residents."

2019 budget

Pictured above: How some of the funds will be distributed under the 2019 Budget. 

A number of different revenue raising methods, indirect taxes and regulations have been changed within the 2019 Budget. Express will be exploring them over the coming days, starting with a focus on fuel, coming later today. 

Pictured top: Deputy Gavin St Pier has presented his latest budget for Guernsey. 

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Comments

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Posted by milton carre on
well you can save a lot of money by not demolishing the l,ancresse wall, you could have saved a lot of money if you had stopped a certain deputy from doing wasting money on electric bikes,doing an upgrade at the salerie corner that did not need doing. time to look closely at the amount of money they have in their budjet.
Posted by Matthew Lowe on
So once again the motorist is being hit in the pocket, our fuel prices are already more expensive than in the U.K. i can remember going to the U.K. with a full tank of fuel and coming back on fumes, but now i do the opposite which isn't good for guernsey in general but it certainly benefits me.
Why don't the states try an alternative option and lower the price of fuel, then people will use there cars more, the cars with big engines that people are trying to sell as they can't afford the fuel will probably get used meaning more fuel sales win win.
Posted by Al Terigo on
According to P&R the duty increase will not increase in real terms the average total amount paid per individual due to lower fuel volume consumed by more efficient engines and change in driving habits! Or.. We will be driven out of our cars to safely walk to work faster than we are allowed to drive by Herr Brehaut! And when fuel duty receipts drop the duty will be increased commensurately to cover the shortfall under the official States Fuel Ponzi Scheme! Time to retrain our stomachs and seek Liberation?!
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