POSSIBLY raising the 20p in the pound income tax rate and taking more tax from businesses have been suggested as ‘progressive measures’ in an amendment to raise more revenue for the States.
South-East deputy Peter Roffey has lodged an amendment against the States Medium Term Financial Plan, revealed last month as part of phase two of the Policy and Resources Plan.
Policy & Resources had proposed the States needed to find £40m. per year to tackle the ‘structural deficit’, with £26.6m. coming from public sector savings and £13.3m. through taxes.
However, Deputy Roffey felt a more radical approach was needed to ensure sufficient funds were available to invest in the island’s infrastructure, supply vital public services and replenish Guernsey’s strategic reserves.
With the support of Economic Development president Deputy Peter Ferbrache, he has now set out proposals which would see the revenue raising target increased from £13.3m. to £25m. and the States savings target reduced from £26.6m. to circa £25m., creating an extra £10m. overall.
While Deputy Roffey said it was up to P&R to decide exactly what measures should be introduced, he did have some suggestions.