Guernsey tax package may change before next debate

Guernsey's top politician has not ruled out making changes to her committee's tax package before it returns to debate in September.

States members ran out of time this week, debating Policy and Resources' (P&R) plans for tax reform, which included a 3% GST, tax breaks for lower and middle earners, savings, the re-introduction of motor tax and higher taxes on some companies.

They will return on 30 September to debate the plans and in that time a number of deputies said they will bring further amendments to the scheme.

Speaking after the debate, P&R President Lindsay de Sausmarez said: "It gives us an opportunity to have a think about what's been raised in debate so far, we'll see."

During debate, amendments asking for the States to look at a flat tax rate and tax breaks for parents were approved, alongside a proposal to limit States spending increases for the next three years to inflation.

None of these will come into force unless the final proposals are approved.

When asked whether the committee could come back with different proposals in Autumn, De Sausmarez said: "We've already had a lot of very interesting debate and we've already had some amendments which have made some changes."

At least 11 amendments could be debated at the next States meeting.

De Sausmarez hit out at some deputies for filibustering during this week's debate: "I think it is a little bit frustrating that we can't get through government business very quickly.

"I hope that we can become a little bit more disciplined about it and get through government business a bit more efficiently."

Following the debate, Deputy Haley Camp pushed back on claims she and other anti-GST deputies were filibustering: "It was below the belt.

"This is an important debate, it's important to the people of Guernsey and it was important to the deputies who brought all of those amendments.

"So it is our constitutional responsibility to ensure that they are properly heard and properly aired, and that is what I have supported this entire week."

Deputy David Goy has confirmed that his proposals for new taxes on under-used buildings and high earners which were not debated this week, will be returning at the next meeting in Autumn.

The late decision to back Deputy Mark Helyar's amendment to limit States spending increases to inflation for next three years caused some concern for Employment and Social Security President Tina Bury.

"It's really concerning that, despite our committee's warnings about the negative impacts of this amendment on benefits such as income support, pensions and long term care, a majority of members voted it through," she said.

"The simple fact is, if we have to pay more people with the same amount of money, the only way to do that is to pay each person less.

"The proposal may well fall at the final vote and we will do our best to explain again in the strongest terms why it should.

"This will be against what we at the Committee would want to do but it would be the will of the States."

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