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Tax proposals out today

Tax proposals out today

Monday 28 November 2022

Tax proposals out today

Monday 28 November 2022


Long-awaited plans for changing the way we're taxed will be published at lunchtime, with an expectation that deputies will then decide whether to accept or reject the proposals early next year.

We've already been warned that public services could be cut if the proposed changes - under embargo until 12:00 - are not accepted.

Express will have full coverage of the tax plans as soon as they are released. 

Ahead of the 2023 Budget being released last month, both Deputies Peter Ferbrache and Mark Helyar said the island's finances were in a precarious position and that promised cut backs have not delivered the savings predicted. 

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Pictured: The warning shots were fired last month.

The proposals will be published at 12:00 with a breakdown of the details and analysis provided by Express.

This evening, members of Guernsey's Policy and Resources Committee, including President Deputy Ferbrache, will be present their plans at a public meeting at Les Beaucamps High School. That will be live-streamed too via the States of Guernsey Facebook page. 

P&R has said it will use that meeting to talk through the new package of measures that the States Assembly will be asked to vote on in January, to explain how it arrived at those decisions, and to outline the long-term financial challenges facing the States.

The presentation at Les Beaucamps School will start at 19:00 and last approximately 45-minutes. There will also be an opportunity for questions and answers after the session.

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Pictured: Guernsey's leaders have been ramping up messaging that public services could need to be cut if sustainable changes to the tax system are not agreed by the States.

It is expected that P&R will use their platform today to explain how a goods and services tax (GST) at a rate of 5% or 8% on most, if not all, consumer purchases would plug the island's growing financial deficit. 

New information on company tax and cuts to the headline rate of personal income tax could also be detailed. 

Ahead of today's announcements, Deputy Ferbrache has previously said there has not been “enough action to tackle” the island’s financial challenges in recent years, with measures required to continue funding essential public services well into the future.

He has previously said that whilst much focus has been placed on GST the Committee will be bringing a whole package of measures to the States and it is important that the community understands them in the round rather than discussions being about one element only.

The facts are that the package of measures we are proposing is designed to both raise the money the island needs while also making the tax system fairer – and will result in most households being financially better off than they are currently if adopted by the States in full. 

We want to explain to the community how that will work and hope that people either attend Les Beaucamps School Hall or watch the live-stream when we present our proposals to islanders on Monday.

Deputy Peter Ferbrache

Pictured: Deputy Peter Ferbrache, President of the Policy & Resources Committee. 

The presentation will also be the first outing of the Policy & Resources Committee with its new membership following Deputy Heidi Soulsby’s resignation as Vice-President last month.

Deputy Bob Murray has been elected to replace her.

Deputy Mark Helyar - the P&R lead on finances - is not expected to be present. He had previously announced via his social media channels that he will be recuperating from an operation during the run up to Christmas.

The media was briefed on the contents of the tax proposals this weekend. 

Follow Express and sign up to our free daily news email to be among the first to read what the incoming tax proposals are at lunchtime…

READ MORE...

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