'Some advantages' to tax policy plans - politician

Leaders in Alderney have stressed tax decisions must be made for the whole Bailiwick of Guernsey

A new tax policy will provide "some advantages" for islanders, a politician has said.

The States of Alderney said it was listening to community concerns about the Goods and Services Tax (GST) plus package from the States of Guernsey and was working closely with officials to make sure any changes were fair.

Policy and Finance Committee chairman Bill Abel said the package could help lower earners with a proposed cut in income tax from 20% to 15% on the first £30,000 earned.

The GST-plus plan is still being debated with a final decision expected in 2026.

Until 2021, Alderney got direct funding from Guernsey, but now the island's £4.1m net service budget and £8.2m in unrecovered costs for transferred services are part of Guernsey's budget.

The financial link means Alderney cannot just opt out of Bailiwick-wide tax reforms, the island's Policy and Finance Committee said.

Abel said there had been some concerns raised about GST-plus around people on lower incomes, but believed the income tax reduction plan would be beneficial.

He said: "Whilst many voice their concerns for individuals on lower incomes, there are some advantages to the implementation of GST-plus in that regard.

"In a practical sense, this means that the effected people will have a greater level of disposable income in their pay-packets."

Abel said other tax options like changes to corporate tax were still under review and could hit the finance sector hard if not handled carefully.

He said while the island had some autonomy on its tax future, final decisions rested with Guernsey's parliament.