Guernsey Press

Fuel up, other rises to spend more on health

FUEL duty will be hiked, personal income tax allowances frozen and large retailers hit by tax increases, under a string of proposals in the 2016 Budget, to help cover a rising health budget.

Published

Measures put forward by Treasury and Resources will also see a drastically reduced transfer to the Capital Reserve from £36.8m. to £18.3m., an additional £8.2m. taken from businesses and taxpayers, including an extension of the 20% company income tax rate to larger retailers.

Domestic tax on real property and land rates will also increase by 7.5% in line with the decisions taken as part of the Personal tax, pensions and benefits review.

The measures, which also include new alcohol duty bandings based on strength, aim to help secure another £8.2m. needed for Health and Social Services next year.

The Budget further reveals that a report into HSSD's spending found annual savings of £24m. could be made through re-modelling the delivery of services.

Minister Gavin St Pier, however, made clear those savings, identified by an independent review, could not be realised immediately and would require further work.

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