Retired States' workers concerned about tax debate

Monday 14 February 2022

The body which represents retired States' employees has raised concerns about what it thinks is a "narrow range of options" included in the Policy & Resources Committee's current public consultation on taxation.

The Retired States Employees Association (RSEA) is welcoming a “period of extensive… engagement” on the Committee's proposals for raising additional tax of around £85million a year, but is concerned that too few options are being presented to the public.

The Committee has launched a public campaign - called 'Our Island, Our Future' - to explain and try to secure support for its preferred option of a new goods and services tax (GST). Its fall-back option is an increase in income tax. 

Predictably, the Committee's preferred option of GST has been met with considerable criticism and concern from the public and other politicians.

The RSEA is concerned that the Committee may have narrowed its focus to GST too soon in the process of developing tax reforms.

It said: “Some members of the Association… have expressed reservations that recent media comments from Deputy [Mark] Helyar [treasury lead for Policy & Resources] can be interpreted as P&R wishing to limit the exercise to reiteration of the simple choice between an increase in income tax or the seemingly inevitable introduction of some form of GST, albeit with some refinement of social security contributions."

Pictured: Deputy Mark Helyar is leading the latest proposals for GST, which are facing significant opposition inside and outside the States. 

The President of the Association, Sean McManus, said: “Seeking to overcome a problem associated with a narrow range of taxation formats may not be best addressed by unnecessarily narrowing the range of alternatives under consideration.

"That would appear to go against the spirit of the extensive consultation and engagement directed by the States.”

Andy Castle, a member of the Association, also called on the Committee to maintain an open mind and explore all options for tax reform.

“The RSEA believes that P&R should be able to demonstrate to the public and other stakeholders that they have investigated and considered the fullest possible range of options for the nature and level of taxation, including allowances and exemptions, or other income required to sustain 21st Century standards for the delivery of public services by the States,” said Mr Castle.

“This should include even those options which, at first view, may appear unpalatable to some.”

Deputy Helyar has said: “We want to do everything we can to inform and explain to islanders why we believe we need to act [and] the advantages and disadvantages of our different options.”

If you’d like to get in touch with the RSEA and have your opinions on tax reform represented through them, you can call 700669 or email rsea@suremail.gg.