Guernsey GST 'will make up part of government work plan'

Policy and Resource's plans for a 5% GST alongside higher income tax allowances had been rejected in February

Plans for a goods and services tax (GST) in Guernsey will make up part of Policy and Resources' (P&R) proposals to fund the Government Work Plan (GWP).

P&R lead on the GWP Bob Murray said it was being included as an option in proposals to be published in August.

Mr Murray said it was "foolish not to include it" for "revenue raising, I'm not going to hide from that".

Proposals for a 5% GST, a lower income tax and social security contributions reforms, were rejected in February.

The GWP proposes the priorities for the rest of the current political term, with the next general election due to be held in June 2025.

Mr Murray confirmed the GST proposals after a question in the States from Deputy Yvonne Burford.

Deputies are due to debate how to fund the GWP at a meeting in September after the Funding and Investment Plan is published in August.

The proposals are likely to comprise of a number of options, including GST, paid parking, income tax rises; alongside other options to raise more money for the States.

P&R has warned that, without more money, the proposals in the GWP could not be paid for and that, without tax reform, Guernsey's deficit would get larger.

An extra £4m is needed to pay for the States' plans up to the end of this political term, after deputies approved the current GWP in principle on Tuesday.

In 2022, the States accounts showed it spent £3m more than it brought in through tax and social security contributions.

Mr Murray warned that GST would have to come back sooner or later.

He said: "It's a strategic move for the future.

"It's not popular, but we aren't here to be popular. We're here to make decisions for the bailiwick's future."

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