Deputy proposes slowdown on States recruitment

The latest figures showed more than 5,000 people work for the States of Guernsey

A Guernsey politician has plans to slow down civil servant recruitment as a way of avoiding tax hikes.

Deputy John Dyke put forward the proposal for debate as part of the budget for 2025, with Deputy Chris Blin seconding it.

He argued the States did not have any choice as the island could not afford a larger civil service.

Policy and Resources (P&R) has proposed a 2p in the pound increase to income tax rates, to raise an extra £34m per year as the main element of its 2025 budget.

The proposal is focussed on senior civil servant recruitment and has a clause which will allow for up to 20 new hires in 2025.

In 2023 the States reported it had 5,058 full time employees, and this year's accounts showed 230 of those earned more than £105,000 a year.

Guernsey's median wage at the end of 2023 was £41,564 per year.

'Heads in the sand'

Dyke argued increasing the income tax rate, as proposed by P&R, would force businesses and people to move away from the island.

He said the States did not have a choice about keeping the current headcount.

"We either put up taxes, or we freeze headcount at the States," he said.

"We are burying our heads in the sand and trying to find ways of increasing tax."

Deputy Mark Helyar, former vice-president of P&R, put forward a proposal to freeze States budgets at their 2023 level.

He also suggested removing salary ranges from States jobs and ensuring they only had an advertised salary.

Deputy Peter Roffey proposed raising more money through a 5% GST, alongside changes to income tax rates and reforms to social security contributions, to protect those on low earnings.

A number of other deputies have indicated they would propose amendments but said they would disclose them after the formal deadline later.