'Guernsey schools and libraries could close' if new taxes are not introduced

"Schools could close" in Guernsey if urgent solutions are not found to solve the island's financial problems, according to the Chief Minister.

Deputy Peter Ferbrache say islanders and politicians must be "brave and make a decision" before time runs out.

Several policy committees in Guernsey have said that if they have to make further cuts, it could mean schools and libraries will be the victims.

The Chief Minister has said there is "little alternative" than to introduce new taxes, including a new goods and services tax (GST).

The Policy and Resources Committee have put forward the tax plan to raise essential funds for public services across the island.

As well as the introduction of GST, there are other proposals which would hit those in the highest income bracket the hardest.

Deputy Ferbrache said: "I just hope my colleagues in late January, have the courage to make the right decision."

If the tax proposals are approved, P&R estimate an extra £50-60 million would be raised by 2025. This would address the £70 million structural deficit projected for that year.

Overall, the tax package aims to raise an extra £52 million per year. This would be £19 million from households, £27 million from businesses and £6 million from visitors.

Islanders will be sent leaflets to their homes on the States' tax plans and are looking for feedback on their proposals.

Politicians in Guernsey will debate new tax laws in the island and whether or not to introduce GST, in the new year.