Tax changes dominate finance election roadshow

2 days ago

John Fernandez

BBC Guernsey political reporter

Godfray Guilbert said the biggest election issue for him was balancing the books

The potential for changes to taxation was among the most popular topics raised at the BBC's third election roadshow, which focussed on the island's finances.

Last year the States approved a package of tax reforms including a 5% GST, a lower income tax rate for earnings under £30,000 and social security contribution changes.

Former Dean of the St Andrew's Douzaine Godfray Guilbert said: "I know GST is unpopular, but we have got to widen our tax base somehow."

Former UK Business Minister Lord Digby Jones agreed that sorting the island's finances and moving forward with plans for a GST should be the States "top priority".

On a visit to the shops, Gill Freeman said States finances need fixing but through a rise income tax rather than GST

A lady with grey hair and glasses. She's wearing a blue ribbed gillet. — On a visit to the shops, Gill Freeman said States finances need fixing but through a rise income tax rather than GST

The roadshow on the state of the island's finances was held in Forest on Friday.

Gill Freeman was among people to attend and said her top election issue was balancing the books.

She said she preferred the idea of an increase to the rate of income tax, which the States rejected in favour of GST last year.

She said: "GST is unfair as it gets the lowest paid."

The agreed States policy, according to the treasury, is to mitigate against the regressive impact of a GST through the lower rate of income tax.

Lord Digby Jones and outgoing deputy Andy Taylor clashed over the island's system of government

Two men arguing behind a branded purple BBC Radio Guernsey microphone. On the left is Lord Digby Jones, he has white shoulder length hair and a yellow shirt and on the right is Deputy Andy Taylor, he's wearing a blue Guernsey and glasses and has spiky blonde hair and a beard. — Lord Digby Jones and outgoing deputy Andy Taylor clashed over the island's system of government

'Necessary evil'

Former UK Business Minister Lord Digby Jones said he wanted the next States to "have a sense of urgency" when it came to tackling the island's public finances.

He said: "We need to follow through with GST+, as that is urgent, otherwise we are just going to run out of money.

"That's not nice to have. It's a must and we need to big time sort out the dosh."

Outgoing politician, Deputy Andy Taylor agreed: "This government needs to drum home the actual situation we are in, the financial difficulties in the future.

"If we don't tackle those we are absolute scuppered."

On the way to pick up her friend at the airport, Sandra Poulding agreed GST was a "necessary evil" for the island.

Deputy Bob Murray is leaving the States after one term in office

Deputy Bopb Murray wearing a blue hat and black sunglasses and smiling into the camera. He has long ginger hair and a ginger and grey beard. — Deputy Bob Murray is leaving the States after one term in office

Another States member, who is leaving government at the end of this term, Deputy Bob Murray, came to visit the roadshow on the way to grab some Guernsey biscuits.

He expressed his exasperation at the current States and said he was concerned incoming candidates would fail to grasp how big an issue the future of the island's finances was.

He said: "The island has still not grasped the nettle in of the challenges we face, and I think we will have to wait for something like a car crash situation to have people wake up to the problems the island has.

"Hopefully GST will be introduced, it is a major way we can start to address the deficit in public finances. The other crown dependencies won't deal with us on corporate tax reform until we bring in a GST, why would they":[]}