Guernsey budget proposals for 2011 agreed

The 2011 budget proposals, which included tax rises on tobacco, petrol, alcohol and property, have been agreed by the States.

The Treasury and Resources Department has said the indirect taxation increases would generate about £3.5m.

One exception was made to the real term freeze on States spending.

That was to allow the budget reserve and contingency fund to be used if benefit payments cause the Social Security Department to overspend.

Treasury and Resources Minister Charles Parkinson said: "I've made no secret of the fact that this is a conservative budget, indeed I'm happy to describe it as dull.

"But the fact that I'm able to present a budget today which does not contain proposals for any new taxes, is a testimony to the resilience of the Guernsey economy over the last two years."

During debate a move to change tax on real property to a flat 6.5% rate for both domestic and business was defeated.

The rises on tobacco, petrol and alcohol came into effect when the budget proposals were announced on 12 November and the tax on real property will increase from 1 January.