Guernsey’s top political committee is anticipated to oppose all proposed alterations to its 2026 budget. Key proposed changes include ceasing any increases in spending for that year, reducing taxes on petrol, and revising how corporate tax income is calculated by the States of Guernsey.
The Policy and Resources (P&R) budget for the upcoming year plans to augment spending by £12 million, implement taxes on vapes, and raise various duties above the inflation rate. P&R President Deputy Lindsay de Sausmarez has stated that a suggested £600 increase in income tax allowances would assist individuals facing rising costs of living.
Critics have expressed concerns that the budget does not address the deficit in public finances adequately. In response, P&R indicated that discussions regarding the future of the island’s tax policy are scheduled for the first half of the new year. Guernsey’s Scrutiny Management Committee has submitted a letter to P&R, critiquing the budget for allocating more funds than the income generated through taxes.
Deputy Andy Sloan, chair of the Scrutiny Management Committee, highlighted that the predicted 4.4% increase in spending is concerning, particularly considering a forecasted 3.4% growth in income. The projected deficit is expected to rise from £66 million to £77 million by 2026. The ongoing debate reflects broader discussions about public finance management on the island.
Source: https://www.bbc.com/news/articles/cdrz662zz67o?at_medium=RSS&at_campaign=rss