Guernsey States Members Show Division Over Proposed Income Tax Increase

A significant portion of Guernsey’s States members, exceeding one-third, have indicated their opposition to proposals for an income tax increase. The island’s Policy and Resources (P&R) Committee has put forward a temporary 2p in the pound rise in income tax as the central component of its 2025 budget. BBC Guernsey reached out to all 40 States members; 15 expressed their intention to vote against the initiative, while only six committed to supporting it. P&R President Deputy Lyndon Trott stated his “every confidence the States will make the right decision for the short and medium-term future of the island”. BBC Guernsey solicited members’ opinions on several suggested amendments to the budget, which are scheduled for discussion at the States meeting commencing on 5 November. These included whether they would endorse P&R’s income tax proposals, Deputy Peter Roffey’s suggestions for a package incorporating a 5% Goods and Service Tax (GST), or Deputy Mark Helyar’s austerity measures. The largest group, comprising 16 members, had not yet reached a definitive conclusion. Two members are anticipated to be absent from the island for the vote, and one did not provide a response. Thirteen deputies declared their support for Mr Roffey’s plans, which encompass reduced income tax rates and social security reform. Education, Sport and Culture (ESC) President Andrea Dudley-Owen characterized his GST package as “far fairer and strategically better long-term for the island”. Mr Helyar’s proposals to freeze States budgets for the upcoming year garnered the backing of five States members, with 18 indicating their intention to oppose his suggestion. Deputy Charles Parkinson and Deputy Liam McKenna funded a Facebook advertisement encouraging States members to reject proposals to raise income tax and implement a GST. Mr Parkinson has put forward modifications to Guernsey’s corporate tax framework and is receiving support from Mr McKenna, who is seconding that proposal. He commented: “I’m not saying it’s the worst budget in history, but it is definitely in the top one.” Deputy Sasha Kazantseva-Miller was one member who reported being undecided on how she would cast her vote concerning all three amendments. She, along with Deputy Dave Mahoney, submitted a dossier to States members examining the implications of P&R’s proposals and Roffey’s tax reform scheme. She remarked: “It is clear from this analysis that an income tax-led package would make most households worse off,” adding, “While the impact could be somewhat mitigated for lower-income households with the restructure of Social Security contributions, most households would still be better off under the GST package.” Four members, including Deputy Simon Vermeulen and Health and Social Care President Deputy Al Brouard, indicated they “could” endorse P&R’s plans but wished to hear the debate first. ESC member Andy Cameron affirmed he would not support any of the primary proposals for tax increases or spending reductions. He asserted that before taxes are raised, further efforts are required to achieve funding savings through digital transformation. Both representatives from Alderney informed the BBC they were undecided on whether they would support any of the budget proposals and would listen to the debate. The previous year, they had supported the former P&R committee’s GST package. In 2023, during the last occasion deputies deliberated reforming the island’s tax system, a proposition to increase income tax was defeated by 30 votes to 10. Initiatives to introduce a GST were also rejected by a margin of 25 votes to 15. Connect with BBC Guernsey on X (formerly Twitter) and Facebook. Submit your story ideas to channel.islands@bbc.co.uk. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content of external sites. Learn about our approach to external linking.