Spending cuts if GST rejected - chief minister

Deputy Peter Ferbrache acknowledged widespread opposition to the proposed GST

Guernsey's chief minister has warned of spending cuts within months if plans to introduce a goods and services tax (GST) are rejected.

Deputy Peter Ferbrache, president of the Policy and Resources Committee, acknowledged there was widespread opposition to the proposed new tax.

But he said the plan was necessary to maintain government services.

His warning comes after an estimated 2,500 protested against the plans at North Beach on Sunday.

Deputy Ferbrache said spending cuts could be introduced in "a month or two" if politicians rejected the committee's recommendations.

"If people have got other ideas, please come forward with them," he added.

A review found introducing a broad-based GST at a rate of 5% was the preferred way to raise most of the revenue needed to put the island's finances on a more sustainable footing.

The proposals also include changes to social security and income tax.