On the Record: Tax and Finance

Friday 02 October 2020

Express has created a series of resources to guide readers through some of the key issues tackled by the outgoing States Assembly - this piece covers some of the votes on tax, finance, and revenue issues that determine the cost of living in Guernsey.

FUEL DUTY:

Fuel Duty has risen annually for around a dozen years; Chief Minister Gavin St Pier has defended the increase, arguing that it is an important revenue source that needs to be protected. In late 2018 Deputies Merrett and Fallaize lodged an amendment to stop the increase in the 2019 budget, and instead establish a Fuel Duty Review Committee to investigate other ways of protecting the revenue, and incentivise the use of electric vehicles. 

The amendment was lost 19-20, and petrol duty rose a further 3p in 2018:

POUR:

Ferbrache, Kuttelwascher, Gollop, Lester Queripel, Leadbeater, Mooney, Merrett, Meerveld, Inder, Lowe, Smithies, Green, Paint, McSwiggan, De Lisle, Prow, Oliver, Jean, McKinley

CONTRE:

Tindall, Brehaut, Tooley, Parkinson, Le Clerc, Trott, St Pier, Stephens, Fallaize, Laurie Queripel, Hansmann Rouxel, Graham, Dorey, Le Tocq, Brouard, Dudley-Owen, Langlois, Soulsby, de Sausmarez, Roffey

ABSENT:

Le Pelley

RENT REBATE:

In early 2018, Employment and Social Security proposed one of the biggest changes to income support in a generation, scrapping the previous rent rebate system and creating a combined support package that merged housing support and supplementary benefits. The proposals were pass almost unanimously, with only David De Lisle voting against, and Dawn Tindall, Peter Ferbrache and the two Alderney Representatives absent for the vote.

The change got off to a rocky start, with hundreds of people failing to register their wage slips before the scheme was enacted, but most of the people who were part of the rent rebate scheme were expected to see their financial situation improve after the changes.

TRP Tariffs:

Another contentious issue in the 2019 budget was the increase to TRP tariffs, and the introduction of a 60% premium on larger domestic homes with a TRP rating of 500 and over. Deputies Paint and De Lisle, who felt that older islanders were being unfairly taxed when they might be asset rich but cash poor, lodged an amendment to reduce the increase from 10% to 2.5%, and remove the proposed premium.

The amendment was lost 18-20, and the States carried the remaining proposals in an unrecorded vote. 

POUR:

Ferbrache, Kuttelwascher, Gollop, Lester Queripel, Leadbeater, Mooney, Meerveld, Lowe, Laurie Queripel, Smithies, Green, Paint, Dudley-Owen, De Lisle, Prow, Oliver, Jean, McKinley

CONTRE:

Tindall, Brehaut, Tooley, Le Clerc, Trott, Merrett, St Pier, Stephens, Fallaize, Inder, Hansmann Rouxel, Graham, Dorey, Le Tocq, Brouard, McSwiggan, Langlois, Soulsby, de Sausmarez, Roffey 

ABSENT:

Le Pelley

Pictured: MOT-style tests for Guernsey cars are just one of the local rule changes that will come for motorists, after the States of Guernsey opted into the Vienna Convention after the United Kingdom leaves the EU. 

THE VIENNA CONVENTION/'MOT' CHECKS:

At the end of 2018, the States voted on a policy letter outlining changes that would need to be made to allow islanders to drive in Europe once the United Kingdom splits from the European Union at the beginning of 2021.

Drivers will need to comply with the Vienna Convention; this largely involves minor changes to legislation, but significantly it also requires an MOT-style check for vehicles before they can drive on the continent. This will become mandatory by 2025 under current plans. The propositions were carried 26-8.

POUR:

Kuttelwascher, Tindall, Brehaut, Tooley, Gollop, Parkinson, Le Clerc, Leadbeater, Trott, Pelley, Stephens, Meerveld, Lowe, Hansmann Rouxel, Green, Dorey, Brouard, Dudley-Owen, McSwiggan, De Lisle, Langlois, Soulsby, de Sausmarez, Roffey, Prow, Oliver

CONTRE:

Ferbrache, Lester Queripel, Inder, Laurie Queripel, Smithies, Paint, Jean, Dean

Absent:

Mooney, Merrett, St Pier, Fallaize, Graham, Le Tocq

LONG-TERM CARE FUNDING:

Employment and Social Security laid a number of ‘difficult decisions’ before the assembly to address the Long-Term Care Insurance scheme's desperate need of funding - without intervention, it is forecast to run out of money by 2047.

Most of the propositions were carried in an unrecorded vote. However, one proposal, which suggested that Islanders with assets above £350,000 (including their home) would have to pay £35,000 upfront for their care through a deferred property loan, proved to be very contentious.

Many Deputies felt that the £350,000 threshold was too low, as it would include most property on the island. Proposition 16, which would have taken away support for people above that threshold, was lost 14-22. 

POUR:

Brehaut, Tooley, Gollop, Parkinson, Le Clerc, St Pier, Stephens, Fallaize, Hansmann Rouxel, McSwiggan, Langlois, Soulsby, de Sausmarez, Roffey

CONTRE:

Ferbrache, Tindall, Lester Queripel, Trott, Le Pelley, Merrett, Meerveld, Inder, Lowe, Smithies, Graham, Green, Paint, Dorey, Le Tocq, Brouard, Dudley-Owen, De Lisle, Prow, Oliver, Roberts, Snowdon 

ABSENT:

Leadbeater, Mooney, Laurie Queripel