Property tax up in Guernsey as 2024 budget approved

Tax on Real Property could be scaled so those with larger houses would pay more tax

A property tax hike will go ahead as politicians approved a 2024 budget for Guernsey.

A higher tax on drivers of high-polluting vehicles was also agreed, to subsidise the island's bus service.

Despite having its budget ratified, Policy and Resources (P&R) is still subject to a no confidence motion after tax reform proposals were thrown out.

Deputy Peter Ferbrache said the "standstill" budget would get the island "through the next year".

The committee president was among deputies to have spent five days debating the 2024 spending plans.

They include a scaled taxation system so those with larger houses pay more.

During discussions, a scheme to fund Education, Sport and Culture's post-16 campus project at Les Ozouets was thrown out.

Meanwhile, proposals to look at new higher rates of property taxes on the owners of unoccupied greenhouses and derelict glasshouses were also dumped, after a request from P&R.

P&R said it had received representations from commercial landlords that a scheme would be difficult to operate, and more time was needed to make it work.

An investigation into whether small breweries could be given tax breaks was approved by the States.

P&R also had its plans to introduce a new tax on disposable e-cigarettes endorsed by deputies.

In October, Deputy Mark Helyar, Treasury lead for P&R, said: "We're in an extremely difficult financial situation, and the Budget which covers the year ahead is not able to provide all the solutions, that's really down to the longer-term decision the States will need to make in the Funding & Investment Plan debate.

"But we're looking to do what we can to minimise the deterioration of our financial position in 2024, while not impacting people on lower and middle incomes."

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