Fifth option put on table in Guernsey tax debate

A fifth option has been added to the States debate on how Guernsey should plug its reported £85 million deficit.

Option E has been proposed by Deputy Peter Roffey and is seen as a fallback to be considered if the States cannot agree on any of the other options.

It outlines a plan which would see the island tackle its growing financial deficit in two parts.

The second stage would need to be approved by the Assembly of 2025-2029.

However, the first stage would be implemented by the current P&R Committee and would aim to raise £55m per year by 2025.

It would do this by the government doing the following:

• Putting forward a proposal by November 2023 to raise up to £20m from corporate taxes or charges.

• Finding a way of raising an additional £6m from property taxes by focusing on some of the island's largest properties.

• Increasing motor taxes so that an extra £10m is raised per year.

• Reforming social security contributions to generate an additional £19m.

• Directing each States committee to find savings within their department.

• Agreeing that the P&R Committee in November 2026 will come up with the next stage of measures that will continue to tackle the deficit.

Information on all the other options being debated can be found here.