Ex-States economist condemns income tax hike move

Proposals to increase income tax will be voted on when the entire 2025 budget is put to deputies

Proposals to increase income tax have been blasted as "lazy, crude and cruel" by a former States economist.

In a letter to all deputies, seen by the BBC, Dr Andy Sloan said a move by Policy and Resources (P&R) to temporarily increase income tax of 2p in the pound is not fiscally competitive or fair.

Dr Sloan claimed the increase would leave islanders paying 10% more tax than those in the UK earning the same wage.

P&R has said there is "need for action now" and the rise "forces the next States to decide on a long-term fiscal solution to our financial challenges, including the cost of long-term care".

'No empathy'

The proposals to increase income tax for two years while looking to introduce GST will be voted on when the entire 2025 budget is put to deputies.

"Raising the personal income tax by 2p in the pound, will mean a Guernsey worker on an average wage will pay 10% more tax and social insurance contributions than a worker on the same pay in the UK," Dr Sloan said.

"When I came to the island in 2008, a Guernsey worker on the average wage paid 20% less.

"Increasing income tax like this is a lazy, crude and cruel tool.

"These proposals display no sympathy or empathy with average workers."