Guernsey election candidates told to consider cost saving plans to fund £650m spending plan

Politicians believe that introducing GST to Guernsey will raise £50 million a year, but some say that isn't enough for the States to fund their agreed £650 million worth of spending. Credit: ITV Channel

A Guernsey business leader has warned candidates for the island's election next year to seriously consider cost-saving measures to fund an eye-watering £650 million in committed spending.It comes as the States of Guernsey agreed to pave the way for a Goods and Services Tax, after four days of debate.

From 2027, people in Guernsey will be paying an extra five per cent on almost everything they buy, with proposals to raise income tax by 10% being defeated.While the States has committed to introducing GST, it’s likely to take two years and cost up to £3 million to set up.

Politicians believe the GST Plus package will raise £50 million a year.

However, there are concerns about how the States will fund their agreed £650 million worth of spending.

With an upcoming election next June, President of Guernsey Chamber of Commerce, Stephen Rouxel, says that candidates must consider how they can handle the States' ballooning shortfall and spending.

He explains: "If you’re going to stand on a 'No to GST' ticket, you need to really understand what is a credible option.

"What costs are you going to cut? Are you getting rid of cancer care? Are you getting rid of NICE drugs?

"Someone in the last election [said] "I’d cut the Police Force by 25%" [but] that saves you £200,000 and we need £70 million. So don’t come with ideas for cost savings unless you really know what that means."

The Committee for Policy and Resources will consider its next steps at a meeting on Tuesday 12 November in what could become an emergency budget, if approved by Deputies.

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