Warning of 'slash and burn’ cuts without Guernsey GST

Policy and Resources Committee (P&R) has proposed a 5% GST alongside a new rate of income tax for some people

The presidents of three of Guernsey's biggest spending committees have warned of a "slash and burn" approach to services if a goods and services tax (GST) is not brought in.

Deputies Andrea Dudley-Owen, Al Brouard and Rob Prow are behind an open letter about their fears of potential cuts.

The Policy and Resources Committee (P&R) has three proposals and its preferred includes a 5% GST.

It believes more money is needed to sustain public services.

In the letter, the politicians said: "There was no intention to frighten - it is an inescapable truth that we have a massive shortfall in public finances.

"The fact is that anyone who tells you that the States can save £31m a year (Option C in P&R's alternatives) without a slash and burn approach to services is either incredibly misinformed or being economical with the truth."

The three deputies point to "a lack of understanding of the package on offer and the benefits that will bring", as to why P&R's preferred plan has been unpopular.

As well as a proposed 5% GST alongside a new 15% rate of income tax for earnings under £30,000 the plans include higher income tax allowances and social security contribution reforms.

"This package of measures would result in lower paid islanders being better off than they are now, even after paying a 5% GST."

In the letter the presidents of Home Affairs, Health and Education, Sport and Culture label the "anti-GST campaign" as "largely based on soundbite not fact".

P&R has said more money will be needed to sustain public services, as people get older and live longer, meaning services like those within Health and Social Care will need to be used more by islanders.

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