Brexit costs warning as Guernsey 2021 budget approved

Reserves will be used to cover forecast deficits in 2020 and 2021

Guernsey States has approved a budget of almost £470m for 2021.

Politicians agreed to use reserves to offset an estimated £82m deficit across 2020 and 2021 due to the pandemic.

Deputy Mark Helyar, treasury lead for the Policy and Resources Committee, warned "unexpected costs from Brexit or Covid" could arise.

Increased duty on alcohol and tobacco was agreed but a planned rise in duty on biodiesel was replaced by a drop from 71.2p to 63.4p per litre instead.

A planned 25% cut in overseas aid spending was approved - the money will instead be used for pandemic-related costs.

Ahead of the debate, Overseas Aid and Development Commission President Chris Blin said a move to keep the aid budget at its original level could not be supported due to the "current economic challenges and uncertainty".

He said Guernsey's own finances needed to be "back on a secure footing" in order to grow the economy and "ensure we can remain committed to overseas aid".

Deputy Blin added: "Our commitment to helping those in the least developed countries should take a longer term view than just a single year's budget."