Do you want fewer public services or more taxes?

ISLANDERS will have to choose between fewer public services or more tax to avoid being hit hard by the demographic time bomb, Treasury and Resources and Social Security have warned.

The department's respective ministers, Gavin St Pier and Allister Langlois, yesterday highlighted the importance of finding a long-term solution to long-term spending pressures at the launch of a consultation over major reform of personal tax, benefits and pensions.

Deputy St Pier said rising health, long-term care and pension costs due to an ageing population meant maintaining the status quo was not an option.

Therefore – while no pre-judgement had been made – issues such as a sales tax, paying more in income tax, and scrapping subsidies such as the family allowance needed to be considered.

• For an overview of the consultation, see Nick Mann's latest column