The 3% increase in the combined Occupier’s Rate and TRP tariffs, typically between £2 and £4 a month more for a domestic property, will enable the States to meet next year’s expenditure when combined with savings elsewhere in the budget. The two previous tariffs will be levied as one tax, the Alderney Property Tax (APT), from January 2021.

An earlier proposal for a 5% increase to enable the Island to manage fluctuations in expenditure and income and build up essential reserves was narrowly defeated by States Members at their October meeting.

Pictured: Air travel to Alderney this summer was saved by the Bailiwick Bubble, which allowed people to travel without restrictions across the islands. 

James Dent, Chairman of the Policy & Finance Committee, told the States of Alderney that the increase was needed to address a 2021 budget shortfall of over £80,000 and to build reserves in “difficult financial times”. With inflation running at 2%, the property tax rise amounts to a 1% increase in real terms.

Mr Dent emphasised that a budget deficit would compromise Alderney’s growing relationship with the States of Guernsey.

“Given the Bailiwick-wide ‘Revive and Thrive’ Strategy and our desire to participate in this initiative, we would be truly foolish to jeopardise this relationship,” he said.

“We now have a once in a lifetime opportunity to work with Guernsey on a joint economic revival programme that could see capital investment in projects likely to generate wealth in both our islands.

"And with the possibility of interest rates falling to below zero, we could be looking at an investment programme that is unlikely to be beaten in terms of value ever again in our lifetimes.”