Corporate tax proposal to fund post-16 campus

A proposal for a post-16 campus has been approved by the States but lacks funding

Politicians have lodged a proposal for a tax on Guernsey businesses to fund plans for a new post-16 campus at Les Ozouets.

Education, Sport and Culture's (ESC) scheme has been approved by the States, but lacks funding.

Deputy Sasha Kazantseva-Miller asked the States to approve plans for a new tax to raise about £5m a year to support more than £100m of borrowing.

Education director Nick Hynes has said he was "frustrated" by the funding gap.

Ms Kazantseva-Miller said it was extremely important to address the fact ESC's Transforming Education Programme did not have any funding, following the defeat of Policy and Resources (P&R) plans for a GST and £350m of borrowing.

Politicians have approved plans to save about £10m a year in future budgets, alongside an investigation into motoring taxes like paid parking and higher corporate taxes to bring in more than £15m a year.

Deputy Sasha Kazantseva-Miller asked the States to approve plans for a new tax to raise about £5m a year to support more than £100m of borrowing

The proposal Ms Kazantseva-Miller has put forward is for a standalone "corporate levy", and is backed by P&R member and former ESC vice president Deputy Bob Murray, as an amendment to Guernsey's 2024 budget.

"I think £5m is being conservative as to what we can raise. This will go a far way to servicing the debt and the interest of the borrowing needed.

"The EY report explored a number of options as to how taxes could be put on the corporate sector.

"A flat standalone type of levy similar to the way the annual validation fee is administered by the Guernsey registry is the type of levy I would be looking at, so it will be something like a flat rate levied on all corporate entities in Guernsey."