Fears over impact of fuel duty on island

Deputy Jayne Ozanne wants the rise to be 2.3% instead of 4.3%

Calls to reduce a proposed fuel duty increase have been made to help "hardworking islanders".

As part of its budget for 2026, the States of Guernsey proposed a tax increase of 4.3%, which would put prices per litre up by 3.7p to 90.5p.

Deputy Jayne Ozanne, vice-president of the Employment and Social Security Committee, said this increase would hit the poorest hardest and wants to reduce the rise to 2.3%.

Policy and Resources Committee vice-president Gavin St Pier said he thought the amendment was an "understandable response", but any reduction would lead to having to find the income from elsewhere.

Ozanne said the current proposal on fuel duty - which is 1% above the inflation figure forecast for 1 January - felt too high.

"I believe the budget needs to serve all islanders and I'm particularly concerned for hardworking islanders who are really being hit by the cost of living crisis that we're experiencing," she added.

"I don't see much in the budget for them."

Business owners and charity bosses in Guernsey said they would be concerned about increases in fuel duty.

Mandy Le Bachelet, manager of Guernsey Voluntary Service, said its meals on wheels service sent out about 30,000 meals a year, and minibuses helped people it supported to attended social clubs.

She said the charity cannot afford to give drivers money to cover fuel costs and anything to lower duty increases would be welcomed.

"Every little bits helps us as a charity because we have to find the funding to support the people we support," Ms Le Bachelet said.

Mandy Le Bachelet, manager of Guernsey Voluntary Service, said a rise in fuel duty would be problematic

Michael Beausire, joint managing director of Le Mont Saint Garage, said he thought an increase was not required.

"It's yet again penalising the middle and lower earners," he added.

St Pier said it was a real challenge to recognise some of the poorest members of the community did not have cars at all.

He said there was a need to address the whole taxation of motoring, which he said was recognised in the budget put forward.

"The challenge of course is if we do agree to reduce the fuel duty, where is that income going to be replaced from?," St Pier added.

"That's always a challenge for anyone who brings an amendment."