P&R expected to oppose all budget amendments

5 hours ago 11

John Fernandez Guernsey political reporter

a bald man with a grey and ginger beard. He is wearing a blue shirt. BBC

Vice-president of Policy and Resources Gavin St Pier will be leading debate on the budget

Guernsey's most senior political committee is expected to oppose 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.

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.

Deputy Andy Sloan - A man with black and grey hair. He is wearing a blue suit, over a pink shirt.

Andy Sloan said increases in spending were "of particular concern"

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.

Guernsey's 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.

Deputy Andy Sloan, chair of the committee, said 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 CampMaking Scrutiny's budget clearer - Deputy Andy Sloan and Deputy Liam McKennaReducing the increase in fuel duty to 2.3% rather than 4.3% - Deputy Jayne Ozanne and Deputy Liam McKennaFreezing mortgage interest relief at £3,500 - Deputy Aidan Matthews and Deputy David GoyChanging the way income from Pillar Two corporate taxes [a global minimum corporate tax rule] are calculated - Deputy David Dorrity and Deputy Andy Sloan

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