Cuts to dairy, harbour and hospital plans among ideas to save Guernsey £200 million

Guernsey's top committee has proposed several ideas on how to resolve their financial black hole. Credit: ITV Channel

Guernsey's government has outlined which big-money project could be put on the back burner to help plug a £200 million hole in the island's budget.

The Policy & Resources Committee had hoped to follow Jersey in introducing a 5% tax on goods and services to raise funds, but States Members rejected that idea.

Deputy Peter Ferbrache, the island's top politician, previously told ITV News the committee would have to "look at every single item and decide whether we think that can go ahead."

Now, the top committee has reviewed all its major projects - grouping them into four categories based on the urgency that they need to be delivered.

Some projects - including refurbishing Footes Lane, overhauling the island's revenue service and P&R's IT transformation plans will still go ahead, as funding has already been committed.

Others, like introducing a Children & Families Hub and replacing the island's buses, could be scaled back.

While some projects - including work on the island's dairy, harbour, and airport runway could be put on hold entirely.

Policy & Resources has proposed cuts to several major projects. Credit: States of Guernsey

P&R says it won't be possible to deliver both the Transformation Education Programme and Phase 2 of the Our Hospital Modernisation project.

Under new proposals, P&R want to temporarily pause the hospital project and focus on improving education facilities on the island instead.

Out of the proposed cuts, Health and Social Care are set to lose the most amount of funding, with four projects listed in the pipeline.

Deputy Peter Ferbrache, the President of Policy & Resources, said: "We have sought to take a sensible approach, recognising that the way the capital portfolio is currently constructed creates significant spikes in expenditure with large projects being scheduled to be carried out at the same time.

"We need to reduce the cost of the current portfolio in recognition of our ongoing deficit and the need to make the limited reserves last longer.

"We also want to flatten that curve to make sure the island as a whole has the capacity to deliver all the capital projects the Assembly has identified as essential.

"We wish to be as transparent as possible but need to stress that they are subject to potential changes following those discussions and it will ultimately be for the States Assembly to decide.

"Difficult decisions are needed, however, as it is simply not possible to deliver all projects in the timescales originally planned."

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