Guernsey States reject call to cut spending instead of GST

The scheme was supported by 16 states members and opposed by 24

An alternative proposal to introducing a good and services tax (GST) in Guernsey has been rejected.

The scheme put forward by Deputy Heidi Soulsby included cutting spending, reviewing government business and taxing cruise ship emissions.

"[It] does everything it can before tax increases on households are needed," said Deputy Gavin St Pier.

However, the proposal was lost as although it gained support from 16 States members it was opposed by 24.

President of Employment and Social Security Deputy Peter Roffey told the States he believed "these plans kicked the problem further down the road".

He described this plan as "the biggest cowardly copout in the States history", whilst Policy and Resources member David Mahoney said "this amendment is all mouth and no trousers".

"We need to have the courage to deal with this now, rather than hand it on to the next term, which is what we are doing here now," Deputy Mahoney said.

Debate on the Policy and Resources Committee's plan - for increased income tax allowances, new social security contribution reforms and a 5% GST - and alternatives continues. Listen to the debate online.

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