States plans for funding future building projects

The committee has presented three options for funding future big building projects in Guernsey

Guernsey's most senior committee has said a new post-16 education campus and an extension to the hospital can be completed without a GST.

However, it warned it would still leave States finances in an unsustainable position.

Policy and Resources (P&R) has presented three options for funding future big building projects.

Its preferred scheme includes a GST, changes to income tax rates and £350m of borrowing.

Another option includes £200m of borrowing and using part of the health service reserve to fund the extension of the hospital.

The final option presented by P&R is for no borrowing, which will mean very few of the planned big States building projects can be completed.

All three of the schemes presented by P&R include making at least £10m in savings and at least £25m from changes to corporate tax and motoring related taxes like paid parking.

In February, deputies rejected proposals for a 5% GST, a reduced rate of income tax for earnings up to £30,000, reforms to social security contributions and a £600 increase to income tax allowances.

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