Budget forecast 'better than expected'

Gavin St Pier said the budget was better than expected but the government still anticipated to be operating a deficit

The treasury lead for the States of Guernsey Deputy Gavin St Pier has said the financial forecast to the year end is better than anticipated.

However, despite the picture looking brighter, the government is anticipating to still be operating at a £2m deficit.

The results were based on income and expenditure to the end of August and forecasts to the end of the year, he said.

St Pier added: "While I don't expect members to be overjoyed by what they read in the budget report, I hope they will appreciate the need to balance the books - and the difficult decisions that entails for everybody in the States of Deliberation."

In an update to states members this week, St Pier said areas expecting to overspend included the Health and Social Committee.

He said staffing difficulties and the cost and volume of off-island acute treatment meant an anticipated £2.8m overspend.

Another area forecasting an overspend was Corporate Services, with an estimate of £1.6m, and changes to digital and technological services had also contributed, he said.

In terms of income for the States, income tax remained the single largest revenue income line and was expected to raise £291m - slightly below original figures, said St Pier.

'Problems and solutions'

He said the revenue service had issued 1084 tax repayments to date but there had been some delays, blamed on the service moving to a new system.

"Without wishing to detract from the hard work of those Revenue Service officers, the current rate of issuing repayments is not an acceptable level of service to the public," said St Pier.

"The Policy & Resources Committee has familiarised itself with the problems and the planned solutions, and has provided challenge to deliver more," St Pier told the chamber.

Deputy St Pier said he planned to give a further update on tax rebates before the end of the year.