Proposal to freeze States spending rejected

Deputy Andy Sloan proposed the spending freeze

Plans to freeze Guernsey States spending in 2026 have been thrown out by deputies.

States members voted by 13 to 25 to reject the proposal from deputies Andy Sloan and Haley Camp.

Health and Social Care Committee President George Oswald warned that, if the proposal was approved, he would have to close the hospital ward which specialised in orthopaedics.

Sloan said his proposal was "not austerity" but "realism", while Vice-president of Policy and Resources (P&R) Gavin St Pier described it as "populist".

Sloan added that "next year's budget forecast a cash deficit of £115m - a structural deficit of £77m".

"That is not prudence, sir, that is drift," he said.

Deputy Sarah Hansmann-Rouxel encouraged deputies to reject the proposal to freeze States spending

States Assembly and Constitution Committee President Sarah Hansmann-Rouxel described the proposal as "wishful thinking" before she voted against it.

One of those who supported the move was States Trading Supervisory Board President Mark Helyar, who said the States "cannot afford to bankrupt the island".

"If there has to be service cuts, so be it. It is difficult, but it may be what we have to do," he said.

Employment and Social Security Committee Vice-president Jayne Ozanne criticised those who brought the proposal for "playing to the gallery" before she rejected the amendment.

'Living within means'

Deputy Haley Camp seconded the proposal to freeze States spending at 2025 levels.

In her speech, she challenged deputies to "show restraint" before asking the public to pay more tax.

"We must be willing to show the public we can live within our means," she said.

She encouraged the States to adopt zero-based budgeting, rather than what she called a system which saw committees start at what was provided the year before.

Deputy Charles Parkinson is leading a review of Guernsey's corporate tax system

P&R member Charles Parkinson criticised some deputies for "gesture politics".

Parkinson is currently reviewing the island's tax system and said deputies would likely have a choice next year on how more revenue could be raised.

He said it would be between higher corporate taxes, the already agreed GST tax reform package, or a mix of both.

A debate on these measures is set to happen before the end of June next year.