John Fernandez Guernsey political reporter
BBC
Guernsey’s most senior political committee is expected to oppose almost all proposed changes to its 2026 budget.
They include a halt in any rises to spending in 2026, plans to reduce the tax on petrol and future changes to how corporate tax income is calculated by the States of Guernsey.
Policy and Resources’ (P&R) budget for next year includes plans to increase spending by £12m, to tax vapes and increase many duties above inflation.
At 07:53 GMT on the day of the budget, P&R Vice-president Gavin St Pier sent deputies a letter of comment on some of the criticisms of the budget, which stated his committee would not oppose one of the amendments.
That amendment is from the Scrutiny Management Committee and has asked the States to separate out the budget for that committee from the line which was parliamentary committees.
Deputy Andy Sloan, who proposed the move, said it would increase transparency as it would show the level of resources available to his committee.
P&R President Deputy Lindsay de Sausmarez said a proposed £600 increase to income tax allowances would help people struggling with the cost of living.
The budget has been criticised for not doing enough to fix the deficit in public finances, but P&R said a debate on the future of the island’s tax policy was due to take place in the first half of the new year.
The Scrutiny Management Committee has sent a letter of comment to P&R which criticised the budget for spending more than the island is bringing in through taxes.
Committee chairman Sloan said in the comment that the predicted 4.4% increase in spending, despite a 3.4% forecast growth in income, was “of particular concern” as the deficit was projected “to worsen” from £66m to £77m in 2026.
Proposed changes and who called for them
- Budget freeze – Deputy Andy Sloan and Deputy Haley Camp
- Making Scrutiny’s budget clearer – Deputy Andy Sloan and Deputy Liam McKenna
- Reducing the increase in fuel duty to 2.3% rather than 4.3% – Deputy Jayne Ozanne and Deputy Liam McKenna
- Freezing mortgage interest relief at £3,500 – Deputy Aidan Matthews and Deputy David Goy
- Changing the way income from Pillar Two corporate taxes [a global minimum corporate tax rule] are calculated – Deputy David Dorrity and Deputy Andy Sloan
